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GlobalizationInternational Business

Group 37

Business: Mass Media and Entertainment

REASON FOR SELECTING DISNE

The Walt Disney Company, commonly known as Disney, is an American

diversied multinational mass media and entertainment con!lomerate

head"uartered at the Walt Disney #tudios in Burbank, Cali$ornia% It is the world&s

second lar!est media con!lomerate in terms o$ revenue, a$ter Comcast% Disney

ranks '(' in the )orbes Global (*** list, hi!her than any other entertainment

company in the world% The most visible international presence o$ Disney is their

parks + currently in Tokyo, aris, and -on! .on!% Disney lms and di!ital content

reaches more than '/* countries throu!h 0#1 and other special networkin!partners% Disney Channels Worldwide reaches more than 2** million viewers in

over '** countries in the 3%#%, 0urope, the 4iddle 0ast, Asia acic, 5atin

America and #outh A$rica% In addition, Disney6s theatrical shows continue to

record successes throu!hout America and 0urope and increasin!ly throu!hout

Asia% Disney consumer products are also bein! produced and consumed

internationally at an increasin! pace% Disney is also the ''thmost value brand in

the world, with 4ickey 4ouse bein! one o$ the most reco!nized icons in the

world% Disney is one o$ the very $ew entertainment companies which have been

!lobally success$ul, both in their content and strate!y% That is why we have

decided to analyse the pro!ress o$ !lobalization which Disney $ollowed the issuesit is $acin! in today6s world%

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The Walt Disney Company

INTROD!CTION

Globalization has been at the core o$ Disney6s strate!y since its inception%

-istory o$ !lobalization7o Incorporation o$ various ethnicities in media productions like 5ion

.in!, rincess and the )ro!, Alladin, etc, which has helped Disneybecome $amous worldwide%

o )irst international theme park in Tokyo%o 0uropean initiative in '//*6s 8 establishin! 0uropean head"uarters

in )rance%o artnership with 0#1 and many other networks to enhance reacho roduction o$ re!ion specic content to enhance relevance in

various countries%o Takin! the help o$ social media and other technolo!ical

developments and to !ain interaction with worldwide public% Disney movies now reach over '/* countries in the world today and

Disney channels have a reach o$ 2** million people across '** countries% Apart $rom entertainment, Disney has had a ma9or impact on !lobal

tourism as well% :ver ;( million people vacation at Disney World annually,

makin! it the most visited resort in the world% The Walt Disney Company creates content and e

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The Walt Disney Company

a# Te$%no&o'i$a& E(o&ution: With technolo!y evolvin! at e

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The Walt Disney Company

But alon! with the demand $or !lobal content, the demand $or localization

o$ the content will also !row% Alon! with !lobal content, demand $or local content, with !lobal

standards, will also be on an alarmin! rise%

AT4 MA5ING

In this !lobal world, shrouded with uncertainty, we need to improve the path we

take towards !lobalization and minimize the risks we may $ace alon! the way%

a# Anti$ipate ,umps detours and .predi$ta,&e surprises/ and ,e

prepared: We need to study the markets we endeavour into very

thorou!hly, take into account the risks, threats, competition and

opportunities in e

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The Walt Disney Company

o Asia acic accounted $or the hi!hest !rowth rate o$ 'H@, while the

!rowth in 0urope was the slowest at ;%(@o 4ade times as much net prot as our closest competitor%o =evenue !rew at twice the rate o$ industry avera!e%

But instead o$ only lookin! at nancial indicators, we need to take a more

value $ocused perspective, especially since we operate in a services basedindustry%

We need to develop a !lobalization scorecard measurin! several other

indicators, apart $rom nancial per$ormances%

(% Industr+ and $ompetiti(e ana&+sis:o 5ook $or competition inside and outside the industry%o -ow many players e

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The Walt Disney Company

3# mi!ht not be very success$ul in Asian countries, where the

culture is a lot more conservative% #imilarly, movies or content

based in 5atin America may not be appealin! in 0urope or 3#% While

trans$errin! content across borders, these cultural diFerences need

to be taken care o$, while maintainin! uni$ormity in "uality%o Administrati(e:0very new country we enter, there is an entirely

new set o$ rules and re!ulations to be $ollowed9 Censors%ip and

,road$astin' re'u&ationsare the aspects which we need to $ocus

on in particular%o Geo'rap%i$a&: Geo!raphical diFerences need to considered

especially while sellin! apparels and other consumer products as

!eo!raphical constraints play a ma9or role in makin! key decisions

in these areas K$or e%!% can6t sell heavy winterwear in tropical

countries%Lo E$onomi$:er capita income and macroeconomic environment o$

each country is diFerent% This needs to be taken into account whilemakin! pri$in' and other such decisions%

% De(e&opment o* strate'i$ options: 3sin! the AAA $ramework7

9 E(a&uation o* strate'i$ options: 0ach strate!y devised and developed

must be evaluated throu!h the !lobalization scorecard mentioned above

and test+marketed in a smaller market, be$ore launchin! it in $ull scale%

The $ocus must be on value additionE $or customers, suppliers, company,

environment and all other stakeholders, instead o$ 9ust nancial indicators%

I on&+ %ope t%at )e ne(er &ose si'%t o* one t%in' t%at it a&& started

)it% a mouse ;a&t Dine+

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The Walt Disney Company

REFERENCES

'% https7NNditm+twdc+us%stora!e%!oo!leapis%comN)J'+er$ormance+#ummary%pd$

(% http7NNcsimarket%comNstocksNse!mentsO!eo%phpcodePDI#M% http7NNthewaltdisneyco%blo!spot%inN(*''N*/Nchapter+;+developin!+!lobal+

vision%html% http7NNdisneycareers%comNenNabout+disneyN!lobal+$ootprintN;% http7NNwww%!ereports%comNpostN'*/('*/(/?HMNthe+!lobalization+o$+

entertainmentN2% http7NNwww%nytimes%comN(*'MN'*N';NbusinessNmediaNpeerin!+into+the+

$uture+o$+media%htmlpa!ewantedPallQOrP*?% http7NNwww%$ool%comNinvestin!N!eneralN(*'MN''N(MNdisney+needs+to+

address+these+(+issues%asp