Case Summary The Walt Disney

Categories: Business Walt Disney

Summary, Pages 2 (273 words)

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According to the case, the Walt Disney Company is a highly diversified company. Over the years, starting from 1923, it has pursued a wide range of diversification strategies. Using horizontal integration Walt Disney operates in media networks, studio entertainment, theme parks and resorts, consumer products, and direct marketing.

On the other hand, Walt Disney favoured vertical integration: for instance, many of its products (books, magazines, audio and computer software, etc.) were sold in stores simultaneously owned by Disney (forward vertical integration). At the same time, the efforts made to maximize theme park profitability were the result of a revenue enhancement strategy.

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It was possible due to lifting restrictions on the number of visitors permitted into the parks, opening the parks on Mondays, and raising ticket prices.

Different strategies were used several times over the years. The main point is that Walt Disney relied on diversification of the business to introduce new products on the market, and to diversify its activity, which is why Walt Disney seemed to be so flourishing during the time.

Another key to the success of the Walt Disney is the attitude of the management of the company to one main critical resource: creativity and intellectual property.

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Firstly, Walt Disney adopted different strategies, diversified its activity, always trying to manage creativity in the best way. Under Einer, creativity was handled through brainstorming meetings. And as we can see Einer and Wells’ success followed changes and innovations. The movie industry was enhanced: Walt Disney released many new movies (15 to 18 per year).

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After that Katzanberg took over and deployed his talent in finding good scripts and attracting good actors, actresses, directors, and partners.