Industry overview In this section we will be analyzing two distinct yet complementary broad industry segments in which Disney Operates namely, Media Industry which includes media network and entertainment business including Parks and Film, and the other is Consumer Products. Media Industry In 2014, Global media industry generated more than 4 trillion USD in revenue. With 135,000 establishments and 1.3 trillion USD revenue, US is the largest media market, followed by Japan and China. In the US, major players are concentrated in California and New York, while small companies are mainly focused on serving local and niche markets. (Hoovers Industry Research, 2015) Growth potential: positively correlated with Economy and Globalization The media industry is expected to grow in line with the overall GDP growth and with the introduction of new and innovative technologies to consume media resources. Accessing more international markets is one of the major drivers for the growth potential and the major players are expanding their reach in markets like China which is the second largest movie market outside North America with 3.6 billion USD revenue in 2013. (Hoovers Industry Research, 2015) The developing markets are also contributing to the growth of global box office through the proliferation of multiple movie screens in those countries and hence, Box office revenue is expected to grow to about $46 billion by 2018 (PWC, 2015), up from about $36 billion in 2013. Mergers and
Disney’s long-run success is mainly due to creating value through diversification. Their corporate strategies (primarily under CEO Eisner) include three dimensions: horizontal and geographic expansion as well as vertical integration. Disney is a prime example of how to achieve long-run success through the choices of business, the choice of how many activities to undertake, the choice of how many businesses to be in, the choice of how to manage a portfolio of businesses and the choice of how to create synergies between those businesses (3, p.191-221). All these choices and decisions are
The Disney consumer product ,the Disney studio and Disney interactive. It’s globally known consumer brand are Disney, ABC, Pixar, Marvel, ESPN and Lucas films, the media network contains domestic broadcast, production, their station, cable networks, publishing and digital operations. The global entertainment and television properties comes from it’s ABC television group, it also has television station and publishing and radio businesses.ABC creates programming and other benefits for all other businesses. Disney organizational structure has historically designed to carve the creativity and innovation into different platforms. It does not follow formal organizational chart as most companies do. Every department has equal footing and the structure is providing a creative process for Disney’s
Introduction The Walt Disney Company is an American diversified multinational mass media corporation. It is the largest media conglomerate in the world in terms of revenue. It generated US$ 42.278 billion in 2012. Disney was founded on October 16, 1923, by Walt and Roy Disney as the Disney Brothers Cartoon Studio, and established itself as a leader in the American animation industry before diversifying into live-action film production, television, and travel. The Walt Disney Company operates as five primary units and segments: The Walt Disney Studios or Studio Entertainment, which includes the company's film, recording label, and theatrical divisions; Parks and Resorts, featuring the company's theme
The Canadian entertainment industry that is served by Cineplex has been recording sustained growth since 2011 where a growth of 5 percent was recorded. PwC’s Global Entertainment and Media Outlook for 2014-2018 (PWC, 2014) indicate that the industry is set for a take-off. The industry has a
The media industry in the United States of America (US) is one such industry. As a powerful communication tool, the media has attracted many companies but only a handful has grown big. These media giants have dominated the local market and are currently seeking to conquer the global media industry in search of better profits.
The organization has a broad range of business sectors that would be very difficult to imitate. This sets this sets them above and beyond competition.
The success of movies and television programs were due to diversity and distribution. It does its own distribution and targets several markets from children to adults. Finally, the Disney character consumer product sector, which includes clothing, home goods, and toys, has been an extremely important asset to the company. For example, by establishing deals such as an agreement with Mattel, Disney was able to manufacture more than 14,000 Disney licensed products. Furthermore, Disney expanded it’s retailing by opening up Disney stores.
According to Robert Iger, CEO of The Walt Disney Company, Disney’s corporate strategy for diversification is a combination of three objectives that are to be achieved through the fundamental alignment of the Company’s core business units. The three objectives to be achieved by The Walt Disney Company are (1) creating high-quality family content, (2) exploiting technological innovations to make entertainment experiences more memorable, and (3) expanding internationally. The Walt Disney Company’s three objectives that make up the Company’s corporate strategy are to be achieved through each of the Company’s core business units that are split up in to five divisions (1) media networks, (2) parks and resorts, (3) studio entertainment, (4) consumer product, and (5) interactive media.
Disney has expanded in both vertical and horizontal dimensions. They have 5 main business categories, notably media networks, studio entertainment, theme parks and resorts, consumer products, and internet and direct marketing.
Media Networks – Disney’s Media Networks businesses compete for viewers mainly with other television and cable networks, independent television stations, and other media such as DVD and Blu-ray video games, and the Internet. With respect to the sale of advertising time, its broadcasting operations, some of its cable networks, television, radio stations compete with other television networks, radio stations , independent television stations, and other advertising media such as newspapers, magazines, billboards, and the Internet. Its television and radio stations mainly compete for viewers in individual market areas. A television or radio station in one market usually doesn’t compete directly with stations in other
as one of the fastest growing company in the market. In 2015 Netflix’s market value
For my final paper I chose to discuss The Walt Disney Company. Since the Company is so large and made up of four primary business segments, I decided to focus on one particular segment: Parks and Resorts. This segment is composed of the theme parks, cruise-line, and vacation club resorts.
Each of these divisions that Disney owns and operates are leaders in their respective industries and capitalize multiple channels that have been created to additional products and other tangible goods account for 10% of Walt Disney’s revenue.
Price Waterhouse predicts 25.2% rise in Chinese entertainment making China the fastest growing market for entertainment in Asia and this can be attributed to the rapid growth of the middle class in China, compounded with
How does media system shape the development of media relevant company: a case study of WeChat’s practice in Chinese and oversea markets.