Disneys Vision

To be the most relevant kids and family brand, driven by compelling consumer experiences, engaging stories and
beloved characters. *Disney creates emotional relationship with customers
Core hallmarks distinguish Disneys from competitors
1. Storytelling Story that consumers can relate with real life
2. Innovation Applying technology into products and services to create best experiences for customers
3. Quality Values that underlying under Disney brand are community, optimism (brave, independent values for
kids Disneys princess) & decency.
Disneys responsibility :
To be most admired company in the world equally admired for the integrity of our people and the way we behave
as citizens of the world. As we are for the quality of our exceptional entertainment experiences.
1. Disney acts responsibly & with integrity.
- Conduct business & create product in an ethical manner
Ethical conduct
Responsible Content - advertisement
Environmental Stewardship
Community Engagement
Respectful Workplaces
2. Promote happiness & well being of kids and families
Conserve nature
Strengthen community
Live healthier
Think creatively
Disney Corporate Citizenship
Compassion JB, Hospital wards for kids doing charity; provide enjoyment to the kids
Creativity
Conservation
Disney Strategic Direction - Diversification
-Invest in creativity :Invest in MNE for brand & stories Marvel & Lucasfilm, Organically -Disneys Infinity,
-Embrace Technology because it creates opportunities : TV everywhere solutions, ESPNs mobile apps
-Expand Globally : China English module running in school, India UTV, Malaysia Local relevance, Disneys XD
(channel identity)

Corporate Strategy of Disney
The Walt Disney Company is a broadly related diversified related business ranging from theme parks, hotels &
resorts, etc. This is because there is a close correspondence between the businesses in terms of how they perform
key value chain activities and the resources and capabilities each needs to perform those activities.
The companys corporate strategy are focusing on :
1. Creating high-quality family content By acquiring IPs(Pixar, Marvel & Lucasfilm) to enhance the resources
and capabilities *(to reach new consumers in new places/ways) of its core animation skills and characters
2. Exploiting technological innovations to make entertainment experiences more memorable By acquiring
Playdom to give the company new gaming capabilities *(acquisition enable Disney to enter gaming industry
faster and easier compare to start with initial development because Disney didnt has the capability).
3. International Expansion Acquisition of UTV to facilitated its international expansion efforts *(exploiting
opportunities in emerging markets).

Sufficient capital to be allocated to its core theme parks & resorts business to sustain its advantages in industry.
To capture synergies existing between its business units Highest grossing films, Cars 2 & POC were featured in
Florida & California themeparks.

Vertically integrated strategic companies expand either backward or forward in the value chain to
operate and make profit from all possible strategic units. Disney adopted this strategy and established its
own operations to build the value chain.
Disneys different strategic business units were Entertainment and Recreation, Motion pictures and
Home Videos and Consumer Products. All these individual business units were vertically integrated but
related diversified in nature. They either acquired or formed new company to reduce the loss in revenue that
was flowing to some other companies in the value chain. For example in Motion pictures, they started with
movies. Soon they realized the profit was being shared by distributors, so they got into distributions via their
Buena Vista Distributions company. Michael Eisners vision was to maximize their profit by identifying the
source of revenue loss and filling the gap. Once successful with distribution, they didnt stop there. Their
next step was to capture televisions and videocassette market and later TV channels to host Disney movies
and other Disney characters show. By doing this, they were able to diversify their product. Below is an
example of vertical integration in Disney.
Movies Distribution ChannelsVideo CassetteesTelevisionsTV Channels
Theme parksHotelsShopping ComplexesNight ClubsFast Food.
What Disney achieved was not easy for any corporation. There were existing big companies in each
value chain that Disney entered, which means they will have big competitors to compete with at every stage.
Generally companies concentrate on their core business and leave the remaining on existing companies. For
example theme park business were their core business, they could have easily let the hotel business to be
operated by existing big players. But they saw this as an opportunity for them. They were not only able to
survive, but also thrive because of this strategy, which allowed them to share management competencies
between different strategic units, better manage their rivalries by using their own company in value chain, so
that the revenue is not shared by others and transfer competencies between businesses. The success of a TV
cartoon could be used to develop toys or vice-versa. They could also be used in theme parks once they are
popular in TV channels and as a product.
Disney did not enter into different business because they wanted to diversify. They did because they
were all related to entertainment industry. One business unit helped other to generate revenue. By hosting
television shows within their own TV channels, they were doing advertisement for their theme parks and
consumer products. They have good co-ordination between different units and they worked as a company
rather than separate profitable units. That helped increase the revenue from theme parks and Disney products.
Instead of concentrating on individual business units, their management was mature enough to look at the
overall revenue of the company. Their management was competent enough to determine the source of loss
in revenue and enter into such business. By entering into related business, they created a world by itself in
entertainment industry. They had such a strong bonding between their lines of products that no competitors
could compete with them as a combined industry. Though they have individual competitors in every field
like distribution channels, televisions channels and theme parks etc, but together, Disney has become a
behemoth.