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Michael DeBianchi
Nancy Abram
MKTG:3000:0EXW
27 May, 2018
Disney Case: The Happiest Brand on Earth
How did Disney create its uniqueness in the Media and Entertainment Industry?
Through diversification Disney created its uniqueness in the Media and Entertainment Industry.
Disney grew from being an animation production company to having four distinct business
segments. These segments include: Media Networks, Parks and Resorts, Studio Entertainment,
and Consumer Products and Interactive Media. These segments work well to promote the other’s,
thus, providing Disney the ability to sustain competitive advantage and foster growth.
What strategic pillars did Robert Iger put in place to grow Disney into the world’s largest media
and entertainment Company? Detail each pillar and explain its importance to Disney’s future.
1. Generate the best creative content possible.
a. By purchasing creative content Disney has and will continue to make franchises out of
the hits because of the synergies within its company. Disney acquired brands such as
Pixar and Marvel and turned them into billion dollar franchises. Disney has the unique
ability to market what it wants through its various businesses which allows them to have
continued success.
2. Foster innovation and utilize the latest technologies
a. Technology is recreating markets and Iger has seen this and is investing in it. Disney has
a CTO council, while Iger is technically the head CTO, Iger saw the importance of
having a CTO in each of Disney’s 4 business segments to create this innovative
atmosphere within the company. The CTO council meets to discuss problems they’re
facing and to share ideas. Iger also included more tech expertise to his board by inviting
Jack Dorsey, John Chen, Sheryl Sandberg and Steve Jobs. With these tech giants on the
board Disney would be more adept to the shift to the tech revolution. Disney has invested
about 75% into BamTech LLC. which shows their backing on new technologies.
BamTech will open up the door to direct-to-consumer programming. Disney will now
create content to compete for Netflix’s viewer share, along with Hulu and other streaming
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services.
3. Expand into new markets around the globe
a. Disney wants to grow world wide and by doing this they hope to duplicate their success
in foreign countries. “Expanding to international markets is beneficial because it will
enhance market share for Disney, enhance brand reputation, increase revenue, and
generate growth, tap into bigger markets, and to diversify the businesses geographically”
(Rothaermel & Inamdar, 2017, p.12). There are a lot of positives going global and Disney
has the potential to be a major multinational firm, but their success will be limited on
their ability to adapt their promotion’s and even their product to every international
market they try to enter.
How is the media and entertainment industry being disrupted?
Companies are engaging in more corporate strategies of vertical integration and expansion of
scope through product diversification.
Streaming services are creating a whole new sector of competition. Companies like Disney will
have to adapt to this disruption by competing in these new markets. Disney’s potential growth
relies on developing technology that can compete in this new era of media and entertainment.
What are Disney’s biggest strategic challenges? What recommendations would you give to Robert
Iger to address these challenges? Be specific.
The quest for creative content may lead to slowed growth due to less opportunities to acquire
high caliber media companies. Also originality may be compromised by focusing on million
dollar franchises.
o I would recommend that Disney continue on their quest for creative content because
that is a major reason for the company’s success. Iger seems to be continually
growing so there is no cause for concern on them becoming stagnant or too reliant on
their creative content quest
Lack luster performance from its digital acquisitions. Examples include online video producer
Maker Studios (2014) and social gaming company Playdom Inc. (2010) and now BamTech.
There’s little to no proof on if Disney can make digital companies successful and this will hurt
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their ability to enter the streaming market.
o I would recommend on hiring a head CTO to handle the CTO council and the
Tech side of the business. Iger has a lot on his plate already and tech is the next
big thing so having a CTO fully dedicated to that would be more beneficial, in
my opinion. Tech is the new big thing and Disney needs to have an active plan in
place to be able to compete in this environment.
Global expansion could cause negative implications to Disney’s brand due to a lack of
understanding of local culture, customs, and foreign government policies. Foreign governments
don’t seem to be taking to the “western influence” Disney’s theme parks have on their citizens.
o I would recommend that Disney be more receptive to each specific countries
customs. The goal for global expansion will be a slow one to accomplish because
each country will be unique in dealing with. Disney must be very careful in
negotiations and executions as to not upset the host country. Patience and
knowledge will be the answer to global expansion.
Who will succeed Robert Iger?
o It looks like it will be Robert Iger again after the 21 st Century Fox acquisition. I
would recommend Disney hiring from within and allowing these final years of
Igers' tenure to vet some of their top level executives.
Works Cited
Baker Library. (2018). Case Flash Forward: Walt Disney Company. HBS No. 701-035. Boston, MA:
Harvard Business School Publishing.
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“Disney CEO Iger on Fox Deal, Murdoch, Sky Plc.” [Link], Bloomberg, 14 Dec. 2017,
[Link]/news/videos/2017-12-14/disney-ceo-iger-on-fox-deal-murdoch-sky-plc-
video.
Rothaermel, F., Inamdar, N. (2017). The Walt Disney Company. HBS No. 1259927628. Boston, MA:
Harvard Business School Publishing.
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