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How Disney Found Its Way Back to Creative Success

• Vijay Govindarajan

With a new strategy and a few key acquisitions.

Since every industry changes in time, the key to success is adapting to those changes –  hence, strategy is innovation.  In this, Disney and Warner Brothers provide an instructive study in contrasts.

• Vijay Govindarajan is the Coxe Distinguished Professor at Dartmouth College’s Tuck School of Business, a Dartmouth-wide chair and the highest distinction awarded to Dartmouth faculty, a Faculty Partner in the Silicon Valley incubator Mach49 , and a Senior Advisor at the strategy consulting firm Acropolis Advisors . He is a New York Times and Wall Street Journal bestselling author. His latest book is   Fusion Strategy: How Real-Time Data and AI Will Power the Industrial Future .   His Harvard Business Review articles “ Engineering Reverse Innovations ” and “ Stop the Innovation Wars ” won McKinsey Awards for best article published in HBR. His HBR articles “ How GE Is Disrupting Itself ” and “ The CEO’s Role in Business Model Reinvention ” are HBR all-time top-50 bestsellers. Follow him on   LinkedIn . vgovindarajan

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The Walt Disney Company Announces Strategic Restructuring, Restoring Accountability To Creative Businesses

BURBANK, Calif., February 9, 2023 – The Walt Disney Company announced details of its strategic restructuring that will refocus the organization on creativity, empower creative leaders and ensure they are accountable for all aspects of their businesses globally, and put the company’s streaming business on a path to sustained growth and profitability.  Effective immediately, the company will be organized into three core, collaborative business segments: Disney Entertainment, ESPN, and Disney Parks, Experiences and Products. The leaders of each business segment will have full operational control and financial responsibility for creative development, marketing, technology, sales, and distribution, and will be accountable for driving business efficiencies globally.

“For nearly 100 years, storytelling and creativity have fueled The Walt Disney Company, with virtually every interaction we have with our consumers emanating from something creative,” said Robert A. Iger, Chief Executive Officer, The Walt Disney Company. “I am committed to positioning this company for a new era of growth. Our strategic restructuring will return creativity to the center of the company, increase accountability, improve results, and ensure the quality of our content and experiences.”

Disney Entertainment will be co-chaired by Alan Bergman and Dana Walden who will be responsible for the company’s full portfolio of entertainment media and content businesses globally, including streaming.

ESPN will include ESPN networks and ESPN+ and will be led by Jimmy Pitaro. Pitaro will also be responsible for the management and supervision of the company’s full portfolio of sports content, products and experiences across all of Disney’s platforms worldwide, including its international sports channels.

The streaming business remains a top priority for the company. Disney’s unparalleled collection of renowned and trusted franchises and brands, combined with the reach of the streaming portfolio (consisting of Disney+, ESPN+, Hulu, Star+ and Hotstar) creates rich and direct connections between the consumer and the company’s stories and characters, powering growth across the entire company.

“Every day, I am reminded of what incredible talent we have leading the many facets of this company,” Iger said. “Thanks to my management team and our exceptional business leaders, who have acted quickly and strategically on the important changes we are undertaking today, I am as encouraged as ever by what the future holds for The Walt Disney Company.”

Disney Entertainment co-Chairmen Alan Bergman and Dana Walden will oversee the company’s global entertainment streaming businesses and manage all content decisions for those services, including Disney+ and Hulu.

Bergman will also have primary oversight of the following businesses and content brands: Disney Live Action, Walt Disney Animation Studios, Pixar Animation Studios, Marvel Studios, Lucasfilm, 20th Century Studios, and Searchlight Pictures as well as Disney Music Group and Disney Theatrical Group.

Walden will also have primary oversight of the following businesses and content brands: ABC Entertainment, ABC News, ABC Owned Televisions Stations, Disney Branded Television, Disney Television Studios, Freeform, FX, Hulu Originals, National Geographic Content, and Onyx Collective.

Pitaro will continue to oversee eight linear networks, including ESPN and ESPN2; sports content across all Disney domestic and, going forward, international platforms; ESPN+; ESPN Audio; ESPN Digital; ESPN Social; ESPN Fantasy and a variety of owned sports events.

Effective immediately, several shared-service organizations across the company will support both Disney Entertainment and ESPN, facilitating company-wide efficiencies and creating a more cost-effective, coordinated, and streamlined approach to operations. These include Product and Technology, led by Aaron LaBerge; Advertising Sales, led by Rita Ferro; and Platform Distribution led by Justin Connolly excluding Theatrical Distribution and Music, which will be overseen by Bergman.

Outside of North America, the company’s media, entertainment, and sports content and operations will continue to be managed regionally by Luke Kang, President Asia Pacific; Jan Koeppen, President EMEA; Diego Lerner, President LATAM; and K Madhavan, President India. These leaders will report to Bergman, Walden, and Pitaro as part of their global responsibilities. As a result of the changes, Rebecca Campbell, Chairman, International Content and Operations, has decided to leave the Company.  An esteemed leader and longtime industry veteran, Campbell will stay on through June to help with the transition.

Disney Parks, Experiences and Products — encompassing the company’s award-winning theme parks, cruise line, resort destinations and Adventures by Disney and National Geographic Expeditions, as well as Disney’s global consumer products, games, and publishing businesses — will continue under the leadership of Chairman Josh D’Amaro.

The organizational changes will be implemented immediately, and the company will begin reporting financial results under the new business structure by the end of the fiscal year.

Executive Biographies 

Alan Bergman – Co-Chairman, Disney Entertainment 

Alan Bergman is Co-Chairman for Disney Entertainment, along with Dana Walden. Together, they are responsible for The Walt Disney Company’s full portfolio of entertainment media and content business globally, including streaming. This includes accountability for content creation, sales and distribution, marketing, operations and technology. Bergman was previously Chairman, Disney Studios Content, responsible for the Studios division, including Disney Theatrical Productions. Prior to that, Bergman was Co-Chairman of The Walt Disney Studios from 2019 to 2020, and its President from 2005 to 2019.

Dana Walden – Co-Chairman, Disney Entertainment 

Dana Walden is Co-Chairman for Disney Entertainment, along with Alan Bergman. Together, they are responsible for The Walt Disney Company’s full portfolio of entertainment media and content business globally, including streaming. This includes accountability for content creation, sales and distribution, marketing, operations and technology. Walden was previously Chairman of Disney General Entertainment Content, overseeing original entertainment and news programming for Disney’s streaming platforms, broadcast and cable networks, in addition to Disney Televisions Studios and Onyx Collective. Prior to that, Walden served as Chairman of Entertainment for Walt Disney Television.

Jimmy Pitaro – Chairman, ESPN 

Jimmy Pitaro is Chairman of The Walt Disney Company’s ESPN business segment, which includes ESPN and ESPN+. Pitaro is also responsible for the Company’s full portfolio of sports content, products and experiences across all of Disney’s platforms worldwide, including content creation, sports rights acquisitions, distribution and marketing. Previously, Pitaro was ESPN President and Co-Chair, Disney Media Networks, after serving as Chairman of Disney Consumer Products and Interactive Media, starting in 2016.  He joined the Company in 2010 to lead Disney’s Interactive segment.

Josh D’Amaro – Chairman, Disney Parks, Experiences and Products 

Josh D’Amaro is Chairman of Disney Parks, Experiences and Products, overseeing a global hub consisting of Disney’s iconic travel and leisure businesses, which include six theme park-resort destinations in the United States, Europe and Asia; a top-rated cruise line; a popular vacation ownership program; an award-winning guided family adventure business; and Disney’s global consumer products operations. D’Amaro has a 25-year track record with the company. Previously, D’Amaro had served as President of Disneyland and then Walt Disney World Resorts.

About The Walt Disney Company

The Walt Disney Company, together with its subsidiaries, is a leading diversified international entertainment and media enterprise.  For convenience, the term “Company” is used to refer collectively to the parent company and the subsidiary companies through which our various businesses are actually conducted. Disney is a Dow 30 company and had annual revenues of $82.7 billion in its Fiscal Year 2022.

Forward-Looking Statements

Certain statements in this email may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our future structure, growth, profitability, positioning, results, creativity, quality, expenses, targets and other statements that are not historical in nature. These statements are made on the basis of management’s views and assumptions regarding future events and business performance as of the time the statements are made. Management does not undertake any obligation to update these statements.

Actual results may differ materially from those expressed or implied. Such differences may result from actions taken by the Company, including restructuring or strategic initiatives (including capital investments, asset acquisitions or dispositions, new or expanded business lines or cessation of certain operations), our execution of our business plans (including the content we create and IP we invest in, our pricing decisions, our cost structure and our management and other personnel decisions) or other business decisions, as well as from developments beyond the Company’s control, including:

• further deterioration in domestic and global economic conditions;
• deterioration in or pressures from competitive conditions, including competition to create or acquire content and competition for talent;
• consumer preferences and acceptance of our content, offerings, pricing model and price increases and the market for advertising sales on our DTC services and linear networks;
• health concerns and their impact on our businesses and productions;
• international, regulatory, legal, political, or military developments;
• technological developments;
• labor markets and activities;
• adverse weather conditions or natural disasters; and
• availability of content.

Each such risk includes the current and future impacts of, and may be amplified by, COVID-19 and related mitigation efforts.

Such developments may further affect entertainment, travel and leisure businesses generally and may, among other things, affect (or further affect, as applicable):

• our operations, business plans or profitability;
• demand for our products and services;
• the performance of the Company’s content;
• our ability to create or obtain desirable content at or under the value we assign the content;
• the advertising market for programming;
• income tax expense; and
• performance of some or all Company businesses either directly or through their impact on those who distribute our products.

Additional factors are set forth in the Company’s Annual Report on Form 10-K for the year ended October 1, 2022, including under the captions “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and “Business,” quarterly reports on Form 10-Q, including under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and subsequent filings with the Securities and Exchange Commission.

The terms “Company,” “we,” and “our” are used above to refer collectively to the parent company and the subsidiaries through which our various businesses are actually conducted.

Media Contacts:

David Jefferson (818) 560-4832 [email protected]

Mike Long (818) 560-4588 [email protected]

Investor Contact:

Alexia Quadrani (818) 560-6601 [email protected]

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Home » Management Case Studies » Case Study: Disney’s Diversification Strategy

Case Study: Disney’s Diversification Strategy

The story of Disney is that of a company founded in 1923 by the Disney brothers, Walt and Roy. In the beginning, the company was referred to as the Disney Brothers Cartoon Studio and later incorporated as Walt Disney Productions in 1929. Walt Disney Productions made its mark for many years in the animation industry before venturing into television and live-action film production. Something else also happened before Walt had the breakthrough with Mickey Mouse. Before Mickey, there was Oswald, the Lucky Rabbit. But because he didn’t own the copyright, Walt lost the rights to Oswald, a bitter lesson that was to shape his company positively in the future. That experience thought him very early the value of intellectual property and Disney has used that knowledge to tighten controls over its properties as well as build defense against entrants and competing incumbents. The characters at Disney are well protected and the brand created out of them are so strong that they deter competitors from ever trying to imitate.

Disney World, a family books lodging months in advance at a hotel inside the park. It does so because it knows that the hotel has the best location, is highly demanded, and will provide good hospitality. Being lodged inside the park, the family eats at Disney-owned restaurants and perhaps buys Disney merchandise. All the while the family willing pays prices that are higher than would be charged by comparable hotels, restaurants, and theme parks. It does so happily because it considers the experience a good value.

But wait, there’s more. Consider what makes Disney World the world’s number one destination resort in the first place. It is fueled by the positive experience generated by other Disney productions – most likely the lovable characters of the Disney family. While in the park, children clamor to meet the Disney characters scattered throughout the park. This memorable and emotional experience further fuels demand for home videos, books, television broadcasts, or retail purchases. And the kids (and often parents) can’t wait for the next trip to Disney World, completing the cycle. This complex but carefully orchestrated web of complementary businesses is the ‘Magic of Disney’. It’s what drives major advertisers such as Delta Airlines and Coca-Cola to pay for the right to feature Disney World in their own promotions.

Disney and Diversification

Disney’s diversification didn’t start today. In 1928, its first cartoon was released. One year later, it licensed a pencil tablet, then the Mickey Mouse Club (MMC) was formed as a vehicle for selling Disney’s products under one roof. Within a short time, the membership of the club grew to 1million members. In 1949, the company diversified into music was was even said to have produced training and educational films during the war. Diversification produces synergy. Diversification strengthens the existing business and the entire new business created. Diversification can be related or unrelated. It is related if the activities of the businesses complement those of the firm’s present business in a way that increases or adds to the competitive advantage . In order words, related diversification leads to strategic fit which itself creates opportunities. Opportunities to;

• Transfer technological know-how (that are competitively valuable) from one business to another.
• Lower cost by combining the performance of common value chain activities
• Leverage or exploit use of a well known brand
• Get valuable resource strength and capabilities across business

But if the businesses being diversified into have no competitive and valuable value chain that fits with the the value chain of the present business(es), then the diversification is said to be unrelated as there is no strategic fit.

Walt Disney understood the interrelation of new industries to each other right from the beginning, something that continues to be the source of competitive advantage to the company till today. Encapsulated in the ‘Magic of Disney’, the story goes thus.

Family take a trip to Disney, book into a hotel (owned by Disney) inside the park. While in the park, the family eats at Disney-owned restaurants, buy Disney merchandise. It doesn’t matter that they are paying higher for accommodation and meals compared to other hotels. Children meet the Disney characters everywhere in the park which leaves a long lasting emotional experience. The children and their parents end up buying videos, books, TV broadcast which they take home with them. All of these make them look forward to another visit to the Disney and the circle continues. The integration of these complementary businesses is the ‘Magic of Disney’.

Ever since, Disney has expanded its operations to cover theatre, radio, publishing, online media etc. Until the early 1980’s Disney focused on the family creating entertainment for the home and the family. As a result, they were clearly differentiated in the market from their competitors. All of that was to change around 1984 when Michael Eisner took over as CEO. Like Walt Disney, Eisner was an innovative and intuitive leader and his era marked a turning point for the company that was hemorrhaging for cash and that soon became the target of takeover by several companies.

Eisner’s goal was to evolve a company that would grow by 20% a year. To achieve this, Eisner followed these three principles which include keeping its cost down so it doesn’t erode its profit, operate the core business in a profitable manner and find new businesses that could integrate with Disney and guarantee an annual growth rate of 20% for the company. To achieve a 20% growth rate, the business had to diversify, exploring synergies in new industries, and overseas expansion. Overseas expansion is inevitable when the local domestic market has reached a near saturation point. Some of the early businesses Eisner was to add to Disney’s portfolio include the Disney Store, Euro Disneyland and the purchase of KHJ-TV, Disney’s first broadcasting outlet. Also, the company established a major television presence and increased the number of films released from 2 in 1984 to 15-18 yearly.

Disney’s expansion and diversification efforts was driven purely by the need to attain an economy of scope that will give it the desired market dominance as well as the economies of scale to bring down its cost of business. It pursued this strategy throughout the 90′ using a combination of diversification into areas that were a natural extension of their current business as well as such other areas where they had less synergy but obviously had found potential opportunities. Both of these led to the birth of Disney Cruises, Pleasure Island and the incorporation of theme park management into its business model .

Is the diversification strategy working for Disney? The simple answer is that the numbers are there as proof. Since the coming of Eisner, revenues grew from $1.6 billion in 1984 to $2.9billion in 1987 largely as the result of the pursuit of diversification as a strategy for growth. One of Eisner’s greatest achievement was how he placed creativity as Disney’s most valuable asset and supported this as a leader to get the best out of his core innovation team

Despite the huge successes recorded, it was questionable whether the diversification into some market or acquisition strategies pursued with some companies such as ABC actually enhanced the shareholders’ value . The presumption is that when two companies who are leaders in slightly different fields combine, both would be better off by the synergy created between two of them. But Disney and ABC are both leaders in providing entertainment and both with extensive networks in creativity and production. When firms cannot leverage on their strengths following an alliance, then they stand the risk of diluting their brand to a point where they will not be able to make the profits necessary to return good value to their shareholders.

Today Disney has grown beyond the traditional amusement parks, movies, television shows, clubs, or books business. Its stable of businesses include Disney Cruise Line, Resort Properties, Radio Broadcasting, Musical Recordings and sale of animation art, Anaheim Mighty Ducks NHL franchise, Interactive software and internet site, etc. Whether these businesses are related or unrelate to Disney’s core business is not an issue as long as it produces synergy that strengthens Disney’s position in the market and creates value for its shareholders . Throughout its history, Disney has, with minor exceptions, shown the true value to shareholders created by synergies from thoughtful diversification. The company’s corporate strategy identifies the fact that while Disney may have some ‘magical’ products (its core products), its strength is not in the products themselves, but instead in the way in which they interrelate and complement each other.

Disney’s diversification efforts further increased the ‘Magic of Disney’. Television advertised the movies, which advertised the hard-goods and which advertised the television shows. So instead of paying to advertise Disney’s products, people were charged to be exposed to advertisement.

When you consider its portfolio of businesses, it will be right to say that Disney has pursued a combination of related and unrelated diversification. Take for instance Resort properties. That’s real estate. But Disney has used this to to make its customer live out the Disney experience right on Disney’s properties as opposed to going to a third party environment to watch Disney Movies or lodged in a different hotel and visiting Disney park.

Walt Disney Company strategy of diversification has helped grow its business in overseas market. Between 1988 and 1996 revenues grew from $3.4 billion to over $12 billion with the most growth coming from films and its consumer products. Not all overseas expansion were successful. For example, the Euro Disney had a lot of challenges and could not live up to expectations as a result of several cultural issues faced by the company .

Disney is now active in the hotel and resort businesses, the Vacation Club business (a natural extension of the hotel business), the cruise business and sports etc.

For a company that relies heavily on its strong culture, Disney must manage its growth and acquisitions carefully without loosing sight of the single most important factor that has brought the company where it is – the strong synergies and symbiotic relationship between its various businesses.

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Disney at the crossroads of disruptive trends

Owing to its intangible nature and oligopolistic structure, the Media & Entertainment industry used to seem particularly difficulty to disrupt, and Disney was sitting right at the top. Yet, ten years after Netflix launched its online video streaming service, incumbents acknowledged that surviving the online revolution requires drastic changes. Until 2017, Disney had not taken the threat seriously. Its streaming strategy could be described as exploratory, at best: It had a 30% stake in Hulu, a third-party streaming platform jointly owned by media giants, and it sold its “old” content to Netflix. However, as Disney’s cable partners (e.g., Comcast) started to lose millions of highly profitable subscribers, the company realized that its half-hearted approach to online streaming was a recipe for disaster. That year marked the turnaround of Disney’s approach to streaming. First, it shocked the world in August, when it announced that it would gradually withdraw its movie content from Netflix. That same month, it revealed it had taken a controlling stake in BAMTech, a technology company providing streaming video technology. Finally, in December, it announced its intention to acquire 21st Century Fox in a deal that closed 15 months later, giving it a controlling stake in Hulu and greatly expanding Disney’s already formidable content library. With the nomination of Kevin Mayer at the helm of DTCI in March 2018, Disney realized its intention to transition into a B2C company. However, it was going to be a long road for Mayer, who faced both external and internal challenges. The case explores Mayer’s options to succeed in a rapidly evolving marketplace in which former partners and internet giants have become the competitors. It also examines how Mayer can position DTCI within Disney, addressing the complexities of collaborating with other business units and the potential cannibalization of the Media Networks division.

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• Identify key aspects of strategy formulation and strategy execution in a global dynamic and highly competitive industry.

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Disney’s Generic Competitive Strategy & Growth Strategies

The Walt Disney Company has a generic competitive strategy that capitalizes on the uniqueness of products offered in the entertainment, mass media, and amusement park industries. Michael E. Porter’s model indicates that a generic competitive strategy enables the business to develop and maintain its competitiveness in the target market. Disney’s generic competitive strategy is based on making its products different from those of competitors. On the other hand, the corporation’s intensive strategies for growth are focused on developing new products that suit global market trends. The company grows through innovation and creativity that enable the business to compete against large firms. Disney competes with the entertainment businesses of Sony and Comcast (owner of Universal Studios), and the movie streaming businesses of Netflix, Amazon Prime Video, Google ’s YouTube, Facebook (Meta) , and Apple TV Plus. The Walt Disney Company’s generic competitive strategy and intensive growth strategies address such a competitive landscape. Through corresponding strategic objectives and competitive advantages, the entertainment conglomerate manages challenges in its industry environment.

This business analysis reflects Disney’s strategic management efforts. The company’s generic strategy focuses on developing competitive advantages based on innovation in product development. Disney’s intensive growth strategies are implemented with strategic objectives for maximizing the growth benefits of such innovation. For example, the company grows by introducing technologically enhanced products, such as movies for customers in the international market. The Walt Disney Company’s generic competitive strategy and intensive growth strategies are aligned for product-focused development.

Walt Disney’s Generic Competitive Strategy (Porter’s Model)

Disney uses product differentiation as its generic strategy for competitive advantage. Michael Porter’s model states that this strategy involves unique products offered to many market segments. For example, the corporation offers its entertainment products to practically every person in the world, especially with the core emphasis on family-oriented programming. In this generic competitive strategy, Walt Disney’s operations management prioritizes quality and uniqueness through innovation that differentiates the company’s products from competitors. The subsidiary, Walt Disney Imagineering Research & Development, has dedicated teams to ensure the uniqueness of entertainment experiences at the company’s theme parks and resorts. Disney’s intensive growth strategies and associated strategic objectives are applied alongside this generic competitive strategy, with emphasis on differentiated competitive advantage to support and manage business growth.

The Walt Disney Company’s generic competitive strategy pushes for product-focused strategic objectives. Such a business focus is necessary for supporting product development efforts to differentiate the company from competitors. For example, the strategic objective of developing new augmented reality products adds to the uniqueness of the Disney experience. Based on this generic strategy, another relevant strategic objective is to strengthen competitive advantages through marketing strategies that reinforce the uniqueness of the company’s brand. These marketing strategies relate to Disney’s marketing mix or 4Ps . Also, this generic competitive strategy involves managerial efforts that contribute to the achievement of the goals of  Disney’s mission statement and vision statement in the global market for entertainment, mass media, theme/amusement parks, and related products. Brand uniqueness helps in achieving industry leadership. Considering differentiation as a generic competitive strategy, Disney’s intensive growth strategies must involve differentiation to grow the business.

Walt Disney’s Intensive Growth Strategies

Product Development (Primary) . Product development is The Walt Disney Company’s primary intensive growth strategy. This strategy involves offering new products in the company’s current or existing markets. For example, the company releases new movies with corresponding merchandise to generate more profits from its target customers worldwide. This company analysis also sheds light on the importance of Disney’s organizational structure (company structure) , which provides the organizational design to effectively manage product development. This intensive growth strategy links to the generic competitive strategy of differentiation in emphasizing uniqueness in product development. A related strategic objective is to achieve business growth by effectively persuading customers to purchase Disney’s products based on their unique attributes.

Market Penetration (Secondary) . The Walt Disney Company achieves growth partly through market penetration. As a secondary intensive strategy, market penetration enables growth by increasing sales of existing products in the company’s current markets. For example, one of the corporation’s strategic objectives is to use aggressive advertising to increase its revenues from products released in the global entertainment industry. The business strengths shown in the SWOT analysis of Disney contribute to success in implementing this intensive growth strategy. A strong brand based on the generic competitive strategy of differentiation creates competitive advantages to attract customers to the company’s media and entertainment products, and to manage customers’ expectations.

Market Development . Market development is an intensive growth strategy that is less frequently used in The Walt Disney Company’s business. In growing the business, this intensive strategy requires the company to introduce its existing products to new markets or market segments. For example, growth is achieved by establishing operations in new markets, such as through a new Disneyland amusement park to capture a regional market. Even with competitive challenges, entry into new markets can increase the company’s strengths to manage the industry’s competitive forces shown in the Five Forces analysis of Disney . A key strategic objective in market development is to use differentiation as a generic competitive strategy to successfully introduce the company’s products into new tourism and entertainment markets.

Diversification . The Walt Disney Company uses diversification as a minor intensive strategy for business growth. Ansoff’s matrix states that developing or acquiring new businesses is the typical approach in this intensive growth strategy. For example, through the establishment of Disney Cruise Line, the company grew by entering the cruise line market of the tourism and hospitality industries. The generic competitive strategy of differentiation develops the competitive advantage of new business operations that use the company’s brand. Under diversification, a strategic objective is to manage competitive challenges by developing new businesses that grow Disney’s presence and brand popularity in the international market.

• Disney’s Unrivaled Commitment to Creativity and Innovation Brought to Life at 2023 Upfront Presentation .
• Kunze, P. C. (2023). Staging a Comeback: Broadway, Hollywood, and the Disney Renaissance . Rutgers University Press.
• Liang, X., Luo, Y., Shao, X., & Shi, X. (2022). Managing complementors in innovation ecosystems: A typology for generic strategies. Industrial Management & Data Systems, 122 (9), 2072-2090.
• The Walt Disney Company – Form 10-K .
• The Walt Disney Company – Investor Relations .
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The Walt Disney Company: A Corporate Strategy Analysis

Carlos Carillo Jeremy Crumley Kendree Thieringer Jeffrey S. Harrison , University of Richmond

Walt Disney is a completely integrated media powerhouse. Films provide material for theme parks and resorts, consumer products, and even a cruise ship. Network and cable broadcasting is also a part of the integrated Disney package. None of Disney’s competitors are as successfully integrated. Still, in spite of a long record of success, Disney is facing more competition on many fronts and, like other media and entertainment companies, must continue to adapt to a changing technological and social environment.

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Copyright © 2012 Jeffrey S. Harrison. This case study first appeared in the Robins Case Network, 2013 .

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Carillo, Carlos, Jeremy Crumley, Kendree Thieringer, and Jeffrey S. Harrison. The Walt Disney Company: A Corporate Strategy Analysis . Case Study. University of Richmond: Robins School of Business, 2012.

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Michael Eisner’s Strategic Management at Disney Case Study

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Organization Climate towards the End of Michael Eisner’s Tenure at Disney

The beginning of Eisner’s tenure and management at Disney are marked by successful results, leading to profitability and prosperity of the company. Most of the purchases and mergers also contributed to the growth of Disney’s influence. Apparently, the success of Eisner’s venture and activities was explained by good relationships with other executives leading the company. Fruitful cooperation with supervisors was evident, but the rest of the personnel did not feel sufficient support on the part of the CEO. However, in the second half of their tenure, Michael Eisner experienced a significant decline in relation to his record and profile.

Most of his relationships broke up due to his egoism and reluctance to compromise. Failure to communicate and cooperate with other important people in the cinematographic industry, including Jeffrey Katzenberg, Steve Jobs, and Michael Ovitz. Further, excess focus on potential rivals and negligence of organizational culture and climate. In particular, the CEO did not provide space and freedom for developing creativity among the employees, which is especially important in this kind of industry. Although Eisner was willing to be part of the company’s personnel and, therefore, he strived to be active while generating ideas and contributing to the companies’ success.

Recommendation to Improve the Organizational Climate Based on Leadership Skills, Principles, and Vision

Although at the end of Eisner’s tenure was not quite successful, the overall policy, philosophy, and vision of the company were congruent with its goals. Specifically, the executive encouraged people working in teams and generating ideas; he also believed that the role of a leader should not be confined to controlling processes and leading people only. Rather, Eisner’s leadership strategies should have been more expansive and visionary because some of the activities did not bring in significant shifts in employee culture and organizational climates. Additionally, low morale and inappropriate ethics are also among the reasons for Eisner’s resignation.

However, excessive focus on this approach prevented other members of the organization to practice creativity and put forward ideas as too many restrictions were imposed on them. Being a cheerleader at the very beginning, Disney managed to achieve tremendous success in the field. Extreme authority and excess use of power should be eliminated to give more freedom to employees and complement the creative policy. The atmosphere should be much more creative to provide writers, animators, and composers with sufficient space and freedom for work.

Strategic Implication of Michael Eisner’s Leadership and His Efficiency at the Strategic Level

At the strategic level, Michael Eisner’s leadership was not oriented on employees, but on the way, they perform objectives and tasks. Negligence of organizational culture led to disorganization and pressure imposed on creative workers. In the context of globalization and diverse culture, it is highly important for Disney’s manager to be more sensitive to the atmosphere in the workplace. The creative process cannot stand frictions and conflict because it does not provide greater results and increased productivity. Cinematography and the animated industry should be more concerned with establishing fruitful and trustworthy relationships to ensure long-term cooperation.

More freedom given to employees does not mean failure to comply with the company’s objectives and missions. In fact, the task of the leader is to gain trust and respect on the part of the employees. The focus on transformational leadership and a person-oriented approach is largely encouraged and, therefore, new executives working at Disney should pay closer attention to employees’ concerns.

• Oprah Winfrey and Mahatma Gandhi as Transformational Leaders
• Personal Motivational Skills Analysis and Development
• Walt Disney Company Managers
• Once upon a time at Disney
• Conflict at Walt Disney Company: A Distant Memory?
• Leader vs. Manager in Trait Theory Approach
• Alan Mulally's Leadership Style in Business and Engineering
• Lessons Learned From Leadership Class
• Leadership and Influence: Action Plan
• Transactional vs. Transformational Leadership
• Chicago (A-D)
• Chicago (N-B)

IvyPanda. (2021, February 12). Michael Eisner's Strategic Management at Disney. https://ivypanda.com/essays/michael-eisners-strategic-management-at-disney/

"Michael Eisner's Strategic Management at Disney." IvyPanda , 12 Feb. 2021, ivypanda.com/essays/michael-eisners-strategic-management-at-disney/.

IvyPanda . (2021) 'Michael Eisner's Strategic Management at Disney'. 12 February.

IvyPanda . 2021. "Michael Eisner's Strategic Management at Disney." February 12, 2021. https://ivypanda.com/essays/michael-eisners-strategic-management-at-disney/.

1. IvyPanda . "Michael Eisner's Strategic Management at Disney." February 12, 2021. https://ivypanda.com/essays/michael-eisners-strategic-management-at-disney/.

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IvyPanda . "Michael Eisner's Strategic Management at Disney." February 12, 2021. https://ivypanda.com/essays/michael-eisners-strategic-management-at-disney/.

Keeping the Eyes Busy: A Case Study of Disney+

• Conference paper
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• Daniel Soares 13 ,
• Hugo Freitas 13 ,
• Joana Oliveira 13 ,
• Luís Vieira 13 &
• Manuel Au-Yong-Oliveira 14  

Part of the book series: Lecture Notes in Networks and Systems ((LNNS,volume 469))

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Ever since the arrival of streaming platforms, society has become more focused on understanding how to take the next step forward in terms of innovation. Streaming is now a new reality that is growing by the second, and businesses have begun to spend more money on streaming services in order to adapt and improve their products for this new era. This is also the case of Disney+, released at the end of 2019, which had an immediate unexpected growth upon its launch. In comparison to other streaming platforms, Disney+ had an easier debut because of its wide range of unique material available to watch. This study explores Disney+ as a brand, a streaming platform, its features and how they compare to others, as well as the company’s business model and revenue, all of which contributed to Disney+ ‘s current position among other streaming platforms. Regarding Disney+, a survey with 84 responses was conducted, and the results were analysed using descriptive and inferential (chi-square independence test) statistics. As the value of the calculated test statistic (11.24) (chi-square test) is higher than the value in the chi-square table, we conclude that there is a statistically significant association between age and being influenced by advertising.

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Daniel Soares, Hugo Freitas, Joana Oliveira & Luís Vieira

INESC TEC, GOVCOPP, Department of Economics, Management, Industrial Engineering and Tourism, University of Aveiro, 3810-193, Aveiro, Portugal

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Gintautas Dzemyda

DCT, Universidade Portucalense, PORTO, Portugal

Fernando Moreira

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Soares, D., Freitas, H., Oliveira, J., Vieira, L., Au-Yong-Oliveira, M. (2022). Keeping the Eyes Busy: A Case Study of Disney+. In: Rocha, A., Adeli, H., Dzemyda, G., Moreira, F. (eds) Information Systems and Technologies. WorldCIST 2022. Lecture Notes in Networks and Systems, vol 469. Springer, Cham. https://doi.org/10.1007/978-3-031-04819-7_21

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