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GROUP CASE STUDY 2 DISNEY: DELIVERING MORE CONTENT IN MORE WAYS
Are you looking for Managerial Economics on Walt Disney Case Study Answers? Get Assignment Answers on Walt Disney Case Stud by our experts in the USA. A Case Study of the Walt Disney Company. Case Study Help provides an in-depth analysis of The Walt Disney Company as one of the top USA companies that are competing in the media industry.
In an ever-changing world, we studied how a company like Disney and more especially the Walt Disney Parks and Resorts segment can grow and stay a leader in its industry.
We investigated the…
- different levels of strategy,
- created a strategic map,
- implemented a five forces analysis of the Walt Disney,
- did a group analysis,
- did a BCG matrix and Synergy analysis,
- explained the diversification strategy.
These researches allowed us to define the critical point that makes Disney the reference in the amusement park industry: offer a unique, immersive and positive experience to each visitor through great storytelling that is continuously renewed.
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What is Walt Disney Company’s Corporate Strategy?
Disney’s businesses flourish in different aspects of entertainment industries, its divisions include Walt Disney Parks and Resorts, Walt Disney Studios, Disney Media Networks, and Disney Consumer Products and Interactive Media. Despite their differences in operation, the core of these businesses is united, -Disney’s mission statement.
“The Walt Disney Company is to hold the position of one of the world’s top producers and providers of information with entertainment. Using the specific selection of brands to differentiate our content, assistance and customer products, we endeavor to develop the most artistic, innovative and successful entertainment experiences and relevant products in the world.”
These words, carefully chosen, summed up Disney’s vision as an entertainment tycoon. Everything that its business units carry out aim to realize Disney’s mission statement.
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What are Walt Disney functional level strategies?
Research and development-
According to the financial report posted on Disney official website, people can know that Disney Company had invested in park and resorts more and more for R&D each year until now. As a result, it is apparent that they really put emphasis on Research and Development this part to meet this changing world.
The strategy of Human resource in Disney Park and Resorts is one of the factors that make them such success. They like to talk about the worst situation at first. Before job seekers applied the recruitment form, they were asked to see a video, which illustrates the company’s culture and practices. They have strict restrictions on clothing. They can’t even unveil their tattoo when they are working.
Controls and administers Walt Disney World resort in Florida, Disneyland Resort in California, manages and has significant ownership interests in Disneyland Paris, Hong Kong Disneyland resort, and shanghai Disney resort.
- Embrace new technology
- Use data to inform decisions
- Optimize user experience
- Balance accessibility with exclusivity
- Deliver unexpected moments of magic
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Describe the scenario under five forces analysis:
After doing an analysis on Disney Park and Resorts, we continue to look into this Walt Disney case with a critical eye. Using Porter’s five forces analysis, we studied what kind of external threats that Disney might have encountered, or would come across in the future. By understanding more about the industrial environment, the business is in, it helps the company to navigate its way towards sustainability and success.
- Industrial rivalry
- Threat of substitutes
- Potential entrants
- Bargaining power of supplier
- Bargaining power of buyers
The company also faces competition in China where they recently opened a new park in Shanghai. The threat of substitutes to amusement parks is relatively high; however, Disney has a strong brand and offers a unique experience making the visit to a park still attractive. Disney parks are moderately free of potential entrants as opening a park requires enormous capital. The bargaining power of suppliers is standard as there are only a handful of attraction makers, and switching may cost a lot of money. The visitors have low bargaining power as the entry ticket prices are fixed and cannot be negotiated. Finally, Disney Park and Resorts has many strengths, its future success will be determined by its ability to innovate and keep offering a unique experience to its visitors.
In 1996, Bill Gates, founder of Microsoft Corporation penned the phrase “content is king”. At the time, he was referring to the availability of information (data) over the internet, but his proclamation applied equally well to video programming delivered to television sets by cable and satellite providers. Households valued and were willing to pay to watch their favorite shows at the scheduled times; coverage of live events, particularly sports; and TV reruns and movies found by flipping the channels. But times changed. According to research firm Moffett Nathanson, in 2010, for the first time in history, pay-TV growth dropped below new household formation.
Elaborate BCG Growth-Share Matrix and Synergies that Walt Disney created
Disney is such an entertainment empire that it operates in many different industries: theme parks, studios, cable network, consumer merchandises, and etc. We looked at several SBUs that are more well-known to the general public, and discuss their positions on the BCG matrix, and what kind of synergies were produced.
The BCG matrix is associated with the life cycle of products. Signifying introduction, growth, maturity and decline, it represents Question marks, Stars, Cash cows and dogs in the BCG matrix respectively. With the help of the BCG matrix, we identified how organization cash resources were used to maximize Walt Disney future prospects and benefits. It gives the criteria for deciding which products or company one should invest in, own, harvest, or dispossess.
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Facing a shift in preferences, new technology, and disruptive entrants, Disney needed to weigh a vast array of alternative strategies to sustain long-run profitability. Its content had been critical to the success of traditional MVPDs, Hulu, and Netflix. Should it exert its power as kingmaker to hasten or impede the demise of the traditional pay-TV bundle, where its content had resided for decades? Should it continue to navigate the relationship between partner and competitor with legacy media companies and well-financed tech firms? Or, should Disney push aside all gatekeepers and deliver its stories directly to consumers?
- What factors were contributing to the changing media landscape? (10 marks)– 1 page
- Describe Disney’s major business segments and its responses to the changing media landscape. How did Netflix’s business model differ from Disney’s? 20 marks) – 2 page
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