Walt Disney Co.

Is Focused
on the Future: Setting Sail
in 2016 and Beyond
Disney is always thinking about and investing in the future.
Movies, theme parks, and cruise ships make this Fool a
happy long-term investor.

SOURCE: WALT DISNEY CO.

Few consumer goods companies plan for the future quite like Disney (NYSE:DIS).
The House of Mouse was founded over 90 years ago and has constantly reinvented
itself along the way. At its core it was an animation studio, but through the years and
iterations it has become so much more. This is the company's enduring strength, an
ability to continue to sell "wonder" to millions of consumers but to do it through so
many different mediums. Disney continues to plan for the future and I plan on it being
a "forever" stock in my portfolio. Movies, a new theme park, and an expanding cruise
line are just three ways Disney continues to grow.

DIS DATA BY YCHARTS

Movies
CEO Bob Iger's enduring legacy at Disney will largely be centered around a handful
of masterful acquisitions. The company acquired Pixar in 2006, Marvel in 2009, and
Lucasfilm in 2012. These acquisitions have already paid massive dividends for the
company and most expect the next Star Wars film to shatter all box office records.
When you combine these studios with Walt Disney Animation and a few coproducers, Disney is slated to be releasing over 25 new films by 2020. These are not
low-budget art house productions.The sequel to the smash hit Finding Nemo, a
number of Star Wars movies, Toy Story 4, and a number of new franchises that are
sure to become beloved hits and spin off many sequels in the future are on the slate.
Filmmaking can be a tough business because one hit doesn't automatically beget
another. Disney has built a recurring revenue model in a business that has
traditionally been boom or bust. It's planning and grand scope are what make this
such a wonderful company to own.

Shanghai

SOURCE: WALT DISNEY CO.

Shanghai Disney, which is scheduled to open in 2016, will be the largest and most
expensive theme park in China, with some estimates putting the price tag at more
than $5 billion. This is exactly the type of investment that a forward-looking company
like Disney should make. It's Parks and Resorts segment is the second-largest for
the company in terms of both revenue and segment operating income and continues
to be a strong growth portion of the business.
An investment in theme parks requires hefty upfront costs but gives a multidecade
return. For a company that has financing, a treasure trove of IP to build desirable
rides, and the managerial know-how to operate the park efficiently, this is a solid
long-term investment. Disney obviously has all three and I expect Shanghai Disney
to become the most visited and most profitable of all of the company's theme parks.
Furthermore, Disney has shown a remarkable ability to tailor its products for
international audiences while retaining the core elements of its brand. One example
at the new park is replacing the iconic Main Street, U.S.A. entrance with Mickey
Avenue. While this is being done for obvious reasons -- World Bazaar is the entrance
at Tokyo Disneyland -- it shows a willingness to adapt to foreign markets, which is a
great sign for future growth.

Cruise Line

DISNEY CRUISE SHIP. SOURCE: WALT DISNEY CO.

Disney recently announced that all four of its cruise ships will sail out of Florida in
early 2017. The company will be offering both three- and four-night trips as well as
longer seven-night excursions to the Caribbean. Disney presently operates voyages
around the globe from Europe to Panama to Alaska but has chosen to center all
travel in early 2017 out of Florida. The company is thinking years ahead to lock up
mind share and disposable income from its loyal customers. Disney has global reach
and the flexibility to put its assets -- in this instance its four ships -- wherever they can
generate the greatest returns. While the cruise line is a relatively small portion of the
overall Disney pie, it goes to show just how expansive and monolithic this company
has become.
Disney has come a long way from being a small animation studio. This article didn't
touch on ESPN, which is its largest profit center, and still presents compelling
reasons to buy and hold the stock for years to come. Sometimes one company can
provide a good deal of diversification on its own. Disney is one of those businesses
and if you haven't considering picking up some shares, I recommend you take a
deeper look at this beloved and cash-gushing company.

22 March 2016: Walt

Disney International
Chairman Andy Bird
speaks on the
importance of
localisation in the
global market
By Daryl Yang | Image by Aleithia Low

What does international mean to you?

This was the key question posed by Walt Disney International Chairman, Mr Andy Bird to
the audience at the Yale-NUS Performance Hall on 7 March 2016.
I have been traveling across the globe and I still cannot find one place that I can call
international. Every market and place has its own perspective and industry leaders in
each market have their unique views of the region. There is no one international market,
only a vast collection of diverse and dynamic local markets, he explained.
Titled The Importance of Localisation: Establishing Disneys Place in the Global
Marketplace, Mr Birds talk focused on the importance of being locally relevant in
establishing a brand in the global marketplace and how his educational background has
equipped him in the world of broadcast and media.
Rather than Walt Disney China or Singapore, the question we should be asking is, How
do we become the Chinese Walt Disney or the Singaporean Walt Disney? Mr Bird
suggested when asked about the companys strategy to be ranked top for global
competitiveness on the Fortune Worlds Most Admired Companies list in 2016.

Mr Bird was at Yale-NUS College to speak on his experiences as Chairman of Walt

Disney International at the invitation of the Colleges Centre for International &
Professional Experience (CIPE).

After joining The Walt Disney Company in 2004, Mr Bird greatly expanded Disneys
presence around the world, such as launching free-to-air Disney Channels in Russia,
Turkey and Spain. Prior to joining Disney, Mr Bird spent close to a decade with Time
Warner, joining in 1994 as senior vice president and general manager of Turner
Entertainment Networks Limited.
A graduate of the University of Newcastle Upon Tyne, where he earned a Bachelor of
Arts degree in English language and literature, Mr Bird also shared how his college
experience and subsequent professional experiences were driven by an innate curiosity
and the impulse to act on it.
So many people have that curiosity, but far too often, fail to act on it. Opportunity and
success can come from anywhere and to anyone. All you need to do is think beyond
what is, imagine what could be, and then make it happen and have fun while you are at
it.
CIPE Dean Trisha Craig said that her team regularly invites speakers who can share with
students not just about what they are doing but also the steps that they took along the
way and the challenges they faced, so as to inspire students as they think about forging
their own paths.
Being the Chairman of Disney International, which has an interesting story to tell about
its global strategy, the fact that his background was studying literature made us think that
his message would resonate with the Yale-NUS community. What especially spoke to
me was his story of taking the initiative to go to his local radio station and work as an
intern for no money just so he could soak up what he needed to know and gain the
experience, Dr Craig shared.
For Roger Ko (Class of 2019), what interested him about this event was the chance to
hear from the leader of one of the most successful companies in the world. Disney is a
powerful brand, and I wanted to know more about their business strategies on the global
market. I also really wanted to know what makes a successful entertainment company
tick, he said.
Similarly, Soh Wee Yang (Class of 2017) wanted to learn more about the man behind
one of the worlds largest international entertainment conglomerate. I wanted to see the
person running the company, which has been quite a big part of my childhood, and find
out what qualities he would have.

The event ended with a question from Ziyad Bagharib (Class of 2018) who asked Mr
Bird for his favourite Disney movie.
It has to be 101 Dalmatians, though I think Toy Story, being the first fully animated
feature film, was also amazing, Mr Bird answered enthusiastically.

Disney Knows It's Not Just Magic That Keeps a Brand on Top
FORBES
OCT 15, 2014 @ 09:44 AM

When someone asks me what it takes for brand success, I tell them, go back
to the future. The fact is, success today calls for the same framework that was
required to build brands in the olden days (olden being pre-hashtag life). You
need to establish a differentiated meaning for your brand that the consumers
you want to really care about, and you need to be able to deliver on this idea
brilliantly and consistently. In other words, you must do what it takes to keep
your promise, keep it relevant, and meet consumer expectations wherever they
touch your brand.
While establishing a differentiated meaning for a brand is tough, perhaps the
greater challenge facing marketers today is the growing number of places
consumers touch a brand. Its become incredibly more complicated to execute
a brand promise. This is what we call bringing the brand to life. Consumers are
interacting with brands in myriad new ways, but brand organizations have to
move much faster, with greater agility and responsiveness to consumer actions
and reactions, which can be at warp-speed in this rapidly changing
environment.
Obviously, the greater the number of ways its possible for a consumer to
interact with any given brand, the greater the challenge for the organization to
keep its promise consistently. So, when I heard 11.2 billion possible
combinations of how you can experience the product, I was all ears. Mouse
ears, as it were. For this was the number stated by Tom Boyles, Senior Vice
President, Global Customer Managed Relationships at Disney Parks and
Resorts, who was among the speakers at the recent Hub Brand Experience
Symposium. And, no, he wasnt referring to the entire Disney brand relative to
these 11.2 billion ways. He was referring only (only?) to the ways a guest can
interact with the Disney brand at its Walt Disney World Resort in Orlando, be
it through major attractions, restaurants, characters, hotels or transportation,
just to name a few points of touch. I wanted to hear what this iconic company
has been doing to stay differentiated and relevant in an increasingly complex,
fast-moving market. And, how they ensure all experiences reflect its promise.
Now, Disneys core promise, the simple idea on which it was launched, hasnt
changed since Walt Disney made clear that it was to create happiness through
magical experiences. As Boyles told his audience, Disney Parks and Resorts
exist to make magical experiences come alive. It was what he said next,

though, that was the key to this on-going success story. A good part of doing
this is knowing your guest well enough to be relevant to them. In 2010, we set
the goal to be relevant to every guest, every day, every time they interacted
with our brand. We wanted to stay the most trusted provider in the space.
As Boyles went on to explain, understanding what is relevant to a guest can
only be achieved if you listen to these guests. Thats why, among the first
things the Disney organization did to meet its goal was to make the switch
from what is commonly known as Customer Relationship Management, to
Customer Managed Relationships. It put into place initiatives that put the
guests in control of telling Disney what was important in a Disney
experience. Doing so made it possible for the company to create solutions that
would enable guests to optimize their personal Disney experience across
multiple points of touch. Disney promoted customer engagement with an
emphasis on meeting a customers needs at a time and in a manner preferred
by the customer. Whats more, in answer to a question raised by one of Walt
Disney Worlds 75,000 employees, Who owns the guest? it was
communicated that no one owns the guest. However, someone, in every case,
owns the moment. Boyles explained that the Customer Managed
Relationship way of doing business generated energy and enthusiasm with
employees. We knew that it was each ones role to connect the moments.
A critical element in this umbrella effort was not magic, but the magic of
technology. Everyone knows Disney has always focused on innovation in
entertainment. In this case, its been a focus on innovative technology and a
maximum utilization of this technology to enhance the customer experience.
Or as Boyles put it, the next generation guest experience. Among the tools
and resources now available to guests as a result is a vacation-planning system
called MyMagic+, which was introduced in 2013. Part of this inventive system
includes MagicBands, which are equipped with radio frequency identification
chips that interact with scanners throughout the park. These MagicBands
allow guests to gain access to everything from their hotel rooms to rides and
attractions. In addition, MyMagic+ makes it easier to book an appointment
with Cinderella, book and order dinner at the parks restaurants, and preselect
FastPasses before you leave home for V.I.P. seating at parades, fireworks, and
character met-and-greets. These, and many more guest-friendly tools, are all
part of MyDisneyExperience.com, an online resource created to help visitors
have more fun with the greatest of ease.

No waiting in line. No stressing about what to see when. No worries about

whether the kids will get to have breakfast with Goofy or get onto Space
Mountain before the end of the day. This is not Fantasyland, but Disneys real
world result of engaging with consumers to determine what matters most and
to keep the experience consistent, whether its made up of 100 or 10,000
interactions. While many companies are struggling to keep up with three years
ago, Disney is making the kind of investments that will enable it to continue to
keep its brand promise. Anyone can say they want to deliver magic. What
makes Disney such a powerhouse brand is that they can see whats required to
get to infinity and beyond. Or as mere mortal, Tom Boyles, says, to ensure
that the most magical place on Earth, remains that way.