Slide 1

The Walt Disney Company : The Entertainment King

1923: Walter Elias Disney and his older brother, Roy, founded Disney Brothers Studio in Hollywood1927: A series of shorts Oswald, the Lucky Rabbit contract: his distributor owned the copyrightNew character: Mickey Mouse (the modified Oswald)1937: Snow White and the Seven Dwarfs the worlds full-length, full-color animated feature.

The Walt Disney Years, 1923 1966 (1)

1940: the company went publicWorld War II1950: Cinderella1950: Treasure Island entered live-action movie1953: created Buena Vista Distribution saved 1/3 of a films gross revenue1954: with ABC produced TV program Disneyland1955: Disneyland a huge outdoor entertainment park1966: Walt died

The Walt Disney Years, 1923 1966 (2)

Roy O. Disney as chairman1971: Walt Disney World theme park1976: Tokyo Disneyland announcedFilm output declined, creativity in the filem division seemed stifled1980-1983: the companys financial performance deteriorated heavy cost to finish EPCOT (1982)1984: Roy E. Disney (son of Roy O. Disney) resigned from BODSid Bass, oil tycoon, invested $365M, rescuing the company, reinstating Roy E. Disney to the boardThe Post-Walt Disney Years, 1967 1984Eisner (from Paramount Pictures): Chairman and CEOFrank Wells (from Warner Brothers): President and COORoy E. Disney: vice chairmanJeffrey Katzenberg: chairman of Disneys motion pictureRich Frank: chairman of Disneys television divisionEisner viewed managing creativity as disneys most distinctive corporate skillEisners Turnaround, 1984 1993 (1)Revitaling TV and Movies: 1984: Disneys share of box ofice had fallen to 4% 1986: The Disney Sunday Movie (premiered on ABC); Golden Girls (NBC) Movie: beginning with Down and Out in Beverly Hills, 27 of Disneys next 33 movies were profitable 1988: Disney Studios film division held a 19% share of total box office, the market leader Disney expanded its animation staff new animated features released every 12 to 18 monthsEisners Turnaround, 1984 1993 (2)Maximizing theme park profitability: Disneys theme park remained popular & profitable 1986: New attractions such as Captain EO Michael Jackson A several-thousand-room hotel expansion at Disney WorldEisners Turnaround, 1984 1993 (3)Expanding into new business, regions, and audiences: 1987: the Disney Stores the consumer product division pioneered the retail-as-entertainment) 1989: Hollywood Records a pop music label 1990: Disney Press children books 1991: Hyperion books an adult publishing label 1992: Eoro Disney theme park The Little Mermaid (1989); Beauty and the Beast (1991); Aladdin (1992) animated features Splash (1984) live action partial nudity Pretty Woman etcEisners Turnaround, 1984 1993 (4)Expanding into new business, regions, and audiences: Buena Vista Home Video market leadership role 1992: acquired a National Hockey League expansion team The Mighty Ducks 1993: a stage version of Beauty and the Beast

Eisners Turnaround, 1984 1993 (5)1994: Good performance of The Lion King and Euro DisneyApril 1994: Wells (Disney President & COO) was killed in helicopter crash in Nevada1994: Eisner underwent quadruple heart surgeryKatzenberg (chairman of Disneys motion picture) left the company joined forces with Steven Spielberg A series of key executives either left the company or changed rolesTurmoil and Transition, 1994 1995 (1)1995: Bought ABC: The largest entertainment company in the U.S A marriege between King Kong and Godzilla Big enterprises are troublesome A culture clash between executives ABC and Disney

Turmoil and Transition, 1994 1995 (2)After acquiring ABC, Disneys financial performance began to deteriorate (1998 & 1999)ABC rating network from top to third place, returned to the top after Who Wants To Be a Millionaire (2000)Hi budget Movie: Con Air (1997) & Armageddon (1998)Disneys home video revenues were dropping Through 2000, as market leader in theme park. Strategy: turn all of its parks into destination resortBy 2002, expansion on theme park business (California, Tokyo, & Paris) & built ne theme park in Hongkong (scheduled to open in 2005)Disney Slumps to End of the Century (1)Failure on Go.com portal (2001)Cost cutting plan that was projected to save $500M starting 2001:Leaner marketing of productsReduced film budgets and ouputsTightened cost control in its TV production unitMajor review on capital spendingClub Disney & the ESPN Stores were closedSale non strategic assets, i.e. Fairchild PublicationsDisney Slumps to End of the Century (2)Managing Synergies: Disney Dimensions, a program held every few months for 25 senior executives from every business a synergy boot camp Synergy group, reporting directly to Eisner, with representative in each business unitSynergy affected the scope of Disneys business geographically (about 21% revenue from abroad), horizontally (enter new type of entertainment ESPN Zones, DisneyQuest, cruise ship & the Disney Institute) & vertically (companys major initiatives involved in Internet and TV).Synergy affected Disneys cost (Merger Touchstone TV into a division of ABC saved $50M a year)Eisners Strategic Challenges (1)Managing the Brand: Some movies created controversy (Ellen, the Sothern Baptists, Priest, Aladdin & Kundun) The Disney Channel ranked a distant third in ratings behind Nickelodeon and Time-WarnersEisners Strategic Challenges (2)Managing Creativity: Importance of finding a president with a strong background in finance, dispute mediation and labor relations Gong Show, a weekly meeting in which Disney employees in each division would brainstorm for new ideas, but it had slowly fallen into disuse Not every body likes having his or her idea dismissed Between 1994 and January 2000, approx. 75 high-level executives left the company for several reasons.Eisners Strategic Challenges (3)1. What do you think were the key success factors for Disney during the Walt Disney years?2. Evaluate Disneys corporate strategy during the Walt Disney era. What role did Disneys array of businesses play in its success? Which divisions provided greater synergy than others? Why?3.Assess Disneys corporate strategy under Eisner. How has the underlying logic changed since the days of Walt Disney? Do you think Disneys corporate strategy has become more or less compelling?

QUESTIONSFaktor-faktor tersebut yang membentuk competitive advantage yang ditawarkan oleh Disney, yaitu diferensiasi melalui inovasi dan komunikasi yang diterapkan oleh Walt Disney inilah yang kemudian menentukan kesuksesan perusahaan untuk mencapai tujuan. Key success factor dari disney adalah : strategi inovasi dengan kemampuan membuat inovasi dengan memanfaatkan kecanggihan teknologi, untuk market segmentasi yang dibidik adalah multi segmen dimana target marketnya adalah dunia anak-anak yang begitu luas dan akan merasa tertarik sekaligus melibatkan dunia dewasa dimana para orang tua akan turut serta mengantar anak-2nyastrategi marketing nya adalah dengan memanfaatkan media sosial yang sedang in (facebook dan Twitter), media promosi TV kabel (ABC & ESPN) dan Strategi Ekspansi yaitu dengan membuka walt Disney di nefara2 berkembang dengan tetap membidik kalangan menengah keatasANSWER 1Dari industri yang dimasuki oleh Walt Disney, yaitu film, TV/radio, theme park, consumer produk dan comic, yang paling memperlihatkan sinergi adalah bisnis film yang menjadi bisnis utama dari Disney dengan amusement park. Sinergi didapatkan dari keterhubungan antara unit-unit bisnis yang dimiliki oleh Disney, kesuksesan dicapai dari aktivitas yang saling mendukung, set yang dibuat di Disneyland berdasarkan film yang diproduksi oleh Disney, dan ini memberikan pengalaman yang berbeda bagi konsumen dalam menggunakan produk-produk Disney.

ANSWER 2Di era kepemimpinan Walt, susunan bisnis diatur agar saling mendukung satu dengan yang lain, salah satu unit bisnis yang akan dikembangkan, pembiayaannya ditopang oleh unit bisnis yang sudah settle sebelumnya. Misalnya, pada tahun 1929 film mickey mouse mendongkrak penjualan comic dan lisensi, tahun 1949 record label dan distribusi film digunakan untuk mengurangi cost pembuatan film begitu juga TV series, tahun 1955 pembangunan Disneyland didorong oleh konsesi penjualan makanan dan merchandising.Kebijakan yang diterapkan oleh Eisner sangat berbeda dengan periode kepemimpinan Walt, Eisner lebih berani dalam melakukan ekspansi dengan mengakuisisi beberapa perusahaan dan menerapkan cost controlling yang ketat. Dengan strategy yang agresif yang dilakukan oleh Eisner sejak ia mengakusisi ABC, terjadi peningkatan ratio hutang setelah akuisisi tersebut, hal ini berarti sinergi yang dilakukan oleh Eisner tidak berjalan dengan baik.Strategi yang dilakukan oleh Eisner tidak sepenuhnya mengakomodasi business unit di bawah Disney bahwa konsep utama sebuah sinergi adalah creates more value than its costs. Dengan mengakuisisi beberapa perusahaan yang kurang mendukung perkembangan bisnis utamanya, seperti akuisisi klub hoki, strategi yang dilakukan oleh Eisner dalam upaya untuk mengembangkan Disney terkesan dipaksakan.

Answer 3

Thank you