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Explore the success and challenges of the Walt Disney Company, its global expansion strategy, and the importance of innovation in maintaining a competitive advantage. Discover the impact of management decisions and the potential risks and opportunities in the theme park industry.
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I Just won the Superbowl… I just helped shovel my driveway… I Just got an “A” in management 5700…
http://www.surfnetkids.com/rollercoaster.htm http://roller-coaster.searsfamily.com/files.html
Caution! Expectant mothers with bad backs and heart arrhythmia Should not go on this ride Please keep your hands and feet inside the ride at all times
The Walt Disney Company • Five major business segments: Media Networks, Studio Entertainment, Parks and Resorts, Consumer Products, Internet Group • Parks and Resorts: The Magic Kingdom (Anaheim) opened in 1955 • Runs the five most visited theme parks in the world
Disney - A Lucrative Investment Gone Bad? • Net income has declined in each of the last five years • Reported 25 billion dollars in revenue in 2000, but only 920 million in net income (3.7% profit margin) • Stock sold as high as $48 two years ago. • Stock is now trading at $17-18.
Management Land • Walt Disney 1923-1966 • Soul of creativity and decision making • Roy O. Disney • Chairman through 1971 • Michael Eisner • Named chairman and CEO in 1984 • Responsible for Disney’s turnaround
Innovation Land • Innovation is what differentiates Disney from their competitors. • Disney's innovation is only as good as its leadership. • Disney is able to transfer their distinct competency of innovation in the global market and maintain competitive advantage. • Recommendation • Disney needs to look toward the future and stick to its core competency of innovation.
Focus land • Disney’s main focus is on children leading to a possible loss of business from adults and thrill seeking teens • External Threats • Power of Buyers • Competitors • Threat of substitutes • External Opportunities • Creation of California Adventure to attract teenagers • New marketing schemes for adults • Recommendation • Disney needs to continue to focus on a larger demographic base
Global Global land • International Strategy • Disadvantages: • Differences in taste among cultures • Unfit economy • “Disney Experience” may lose some of its magic • Advantages: • Transfer of Distinct Competencies (Brand Name) • Competition very low in other countries • Recommendation • Continue globalization strategy
"Rejected New Names for Euro-Disney" 10. Euro Disaster 9. El Biggo Mistake-o 8. Never-Never-Profit Land 7. La Veal de Guys in Big Smelly Costumes 6. Gumpworld 5. Beaucoup de Crap Americain 4. Johnny Depp's Hotel of Destruction 3. Boutros Boutros-Goofy 2. Have-You-Forgotten-We-Saved-Your-Butt-in-the-World-War-Two-Land 1. Ooh-La-Lame As presented on the 9/15/94 broadcast of LATE SHOW with DAVID LETTERMAN