Case study on Disney Consumer Products: Marketing Nutrition to Children

9. KEY DATES

11. The Eisner Era:
(1984-2004)
• The “Disney Decade”
• Merger with ABC
• Ovits 38 Million
Dollars in cash, 3
Million stock options.
• Robert Iger was
appointed as CEO.

12. The Iger Era:
(2005-Present)
• Major downsizing,shut downs and
selling.
• Shanghai Resort.
• Purchase of Marvel.
• Expansion to Asian and Indian
Market.

13. SWOT ANALYSIS:

14. STRENGTHS
• Strong diversification.
• Responsiveness to market.
• Brand recognition.
• Creative Process.

15. WEAKNESSES
• Large R&D costs.
• High risk factor.
• Constant upgradation.
• High sunk costs.

17. OPPORTUNITIES
• Growth through further
diversification.
• Increase media networks/
Broadcasting market share.
• International growth/New
Markets.
• Changes in technology and
consumer consumption.

18. THREATS
• Economic recession.
• Changes in technology and
consumer consumption.
• Intellectual Property.
(protection of)
• Uncontrollable changes in
travel and tourism.

20. STRATEGIES

21. STRATEGIES
Target Market Strategies
International Outreach
Strategies
Advertising and
Promotional Strategies
Innovation as a Market
Strategy
Product
Differentiation

23. • Expand into the airline
industry.
• Ensure the daily operations are
running efficiently and engage
in new tasks.

24. Disney Air.
• Purchase of fleet of 18 airplanes.
• Operate with a system similar to SouthWest.
• Operate to Orlando & Anaheim from 13 major US Cities.
• Flights attendants dressed as Disney characters.
• Discounts to parks for passengers.
• Possibility to expand internationally.
• Charge a premium price for flights.
• Strong brand power will allow them to successful.

25. PORTER’S
FORCES.

31. QUESTION 1?
Disney now has five lines of business. How
successful can Disney will be in the future
with it’s endeavours to integrate entertainment
inside and outside the home? Will it’s theme
parks, restaurants and movies complement it’s
plans to expand into the markets of the
internet and broadcasting?

32. ANSWER 1:
Every single company has it’s impact on the future success of the company. Infact, on it’s way to expand
worldwide, Disney has multiplied its innovations and movie productions to better serve internationally. It has
now 7 theme parks, 27 hotels with 36,888 rooms, 2 cruise ships, 728 Disney stores, 1 broadcast network, 10 TV
stations, 9 international Disney channels, 42 Radio Stations, an Internet portal, 5 major web-sites etc.
Its 5 lines of business with its endeavour to integrate entertainment inside and outside the home is a good
opportunity for Disney to gain a competitive advantage within the market place and more importantly within the
movie industry.
Infact its technological innovations with its media networks will comfort its leading position within the sector.
Now-a-days, technology has become a very increasingly tool to compete with rival companies and industries.
Internet and Broadcasting will have a positive impact in developing marketing strategies and plans for theme
parks, restaurants and movies.
I suggest that Disney first focus on integrating entertainment inside the home and then outside the home.

33. QUESTION 2?
How should Disney maintain
its corporate culture as it
continues to expand into
global markets?

34. DISNEY CORPORATE CULTURE
Disney is rich in heritage, traditions, quality
standards, and values that it believes are critical
factors to its success.
Cast members share the value of honesty, integrity,
respect, courage, openness, diversity and balance.
These values are demonstrated through such traits
and behaviours like making guests happy, caring
about fellow cast members, working as a team,
delivering quality, fostering creativity, paying attention
to every detail and having an emotional commitment
to Disney.

35. Diversity in the Workplace
As diversity in the workplace continues to
become a focus for nearly in the Walt Disney
Company, and have to work to make this
vision a reality.
By providing the cast members with the
opportunity to express their own creative
thoughts and direction, Disney has fostered a
greater ‘buy-in’ to the company vision.

36. ORIENTATION
Disney’s orientation process in ongoing for all Disney cast
members, beginning with the recruitment stage.
It continuously reinforces the values, philosophies, guest service
standards on which Disney has prided itself for so many years.
Employees at Disney called “cast members” do not work at a job;
instead, they are “cast” in the role of the “show”.
Disney uses this terminology to immerse its employee in an
environment that constantly reinforces this image Disney wants to
project to the public.

37. What should Disney maintain?
• Managing diversity.
• Make effective work teams.
• Effective motivation through the
goals.

38. QUESTION 3?
With the current labour market and
competitive conditions dictating
wage rates, should Disney and other
large companies in the tourist
industry be required to pay higher
wages?

39. Based on of United States Department
of labour( Bureau of Labour Statistics), it
exhibits that the employment number is
decreasing and it has the contrary as the
wage rate. In average weekly rate, it is
increasing.
There are two points to elaborate :
- Financial Point of View
- Organizational Point of View