Case Walt Disney (Strategic Management)

Walt Disney Company

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SITUATION

ANALYSIS

Established

Walt Disney

And

Brother Roy

Geographic Growth

United

States

Of America

Decline

Studio

Entertainment

192376 % Revenue

&

77 % operating

income

Experienced

decreasing revenue in

Last three

years

Market Overseas

United states

&

Canada

Disney

land

ParisAsia pacific

Latin America

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Consumer Products Studio Entertainment

Parks & Resort Media network Broadcasting

Market Segment Analysis

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TIME WARNER CBS Corporation Discovery Network Ocean Park ( Hong-Kong)

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Competitor Analysis

Deal with Creative

process

Long Term Debt

Asia Pacific

SWOT

Brand Name

Market

diversification

High Maintenance Cost

Excessive R & d

Spreading Risk Recession

Overseas Legal

requirements

opportunities Threats

weaknesses

Global

Standardization

Strength

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Net Income Analysis

$ 3374 m ( 2006)

$ 4687 m (2007)

$ 4427 m (2008)

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Year 2008 2007 2006

Media Network 16,116 15,104 14,186

Parks and resort 11,504 10,626 9,925

Studio Entertainment 7358 7491 7529

Consumer Product 2875 2289 2107

Year 2008 2007 2006

Media Network 4,755 4,275 3,481

Parks and resort 1,897 1,710 1,534

Studio Entertainment 1087 1195 728

Consumer Product 718 631 607

Revenue and Operating Income by Segment

REVENUE

Operating Income

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Symptoms

Decline in segmented revenue of Studio Entertainment

Decline in segmented operating income of Studio Entertainment

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CORE ISSUES

Decline in Walt Disney’s Net

Operating Income level by Studio Entertainment

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Strategy

Evaluating strategy

Change Product

delivery lineStrategy # 1

Strategy # 2

Digitalize content to

utilize technology and

lower cost

Pros

• Desire Customer

• Diversification of risk

Cons

• Loss Customer

• Income level goes down

• High investment

Change Product delivery line

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Pros

• Attract Customer

• User Availability

• Generate revenue

• All classes of customer

Cons

• High Investment

• Loss the standard of content

Digitalize content to utilize technology and lower cost

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Analysis Problem Identification Alternatives Solution Implementation Contingency

Recommended Strategy

Digitalize content to utilize

technology and lower costWHY?

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Solution

21st century

mindset

Customer Demand

Profit

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Implementation

01Target All age of customer

Telecast all the things via Disney's

media channel 02

Make all the product free but

taking money from Media

channel 03

THANK YOU