Disney’s main strategies include: developing quality and innovative features that will separate Disney as “Best-in-class”; researching and implementing new and exciting technology for an early competitive advantage while at the same time increasing customer experience. What is your assessment of the long-term attractiveness of the industries in Walt Disney’s business portfolio? What is your assessment of the competitive strength of Walt Disney Company’s different business units? Media Networks/Broadcasting and Studio Entertainment –High market capitalization and the lower end of revenues compared to Time Warner and CBS. However, with the capital and brand recognition Disney has they are extremely competitive here; especially with ESPN, Pixar, ABC, The Disney Channel. Parks and Resorts –Disney is extremely competitive here with high market cap and high revenues. Disney has become known as the premier destination and vacation for those looking for a theme park. They compete with Six Flags and Ocean Park; Disney has tons of pull in this side of the business.
Consumer Products –Another form of Disney’s business that is extremely strong and highly competitive. The only downfall of this side of the business is that it is HIGHLY competitive and a weakened global economy has hurt the bottom line. What does a 9-cell industry attractiveness/business strength matrix displaying Walt Disney’sbusiness units look like? Does Walt Disney’s portfolio exhibit good strategic fit? What value chain match-ups do you see? What opportunities for skills transfer, cost sharing, or brand sharing do you see? All of the business units in Walt Disney’s portfolio exhibit good strategic fit except consumer products. As mentioned above the “consumer products” side of the business is not an attractive venture. With Disney’s hand in many “cookie jars” they have the potential to use many assets and skills in a broad range of ways. Disney’s Media Networks can advertise their theme parks, their studios can be used for movies, and technology researched by Studio Entertainment can certainly be shared across the board. Costs incurred long ago by the Studios to develop characters like Mickey Mouse, Cinderella now continue to generate returns in hotels/cruise ships, video/game production, and theme parks. Assets are deployed across all business lines to drive shareholder value.