Description
The PPT is about history and strategy of disney.
THE WALT DISNEY COMPANY: THE ENTERTAINMENT KING
OVERVIEW OF DISNEY - TIMELINE
Disney Timeline
1954, Theme Parks 1950, TV/Radio 1930, others 1929, Cons. Prods. 1923, Films
1920
1930
1940
1950
1960
OVERVIEW
?
Walter Disney – Founded Walt Disney in 1923 Roy Disney – Walter’s brother
?
?
Sid Bass – Saved Disney from hostile takeovers
Eisner – Disney’s chairman and CEO, 1984 Frank Wells – President and COO, 1984
?
?
Media
WALT DISNEY
REVENUE SOURCES IN 1984
0% 0% 8% 17%
76%
Theme Parks and Resorts Consumer Products Internet and Direct Marketing
Films Media Networks
REVENUE SOURCES IN 2000
1%
38% 27%
10%
24%
Theme Parks and Resorts Consumer Products Internet and Direct Marketing
Films Media Networks
OBSERVATIONS
?
When Eisner joined Disney in 1984, Theme Parks and Films were the two biggest contributors to Revenues In the year 2000, the scenario had totally changed. The single largest contributor to sales was the Media Networks business. Theme Parks and Films were distant second and third respectively Revenues grew from $1.65 billion in 1984 to $25.4 billion in 2000
?
?
REVENUE CAGR
FROM
1984-2000
22.1% 12.1%
21.9% 19.6%
0.0%
Theme Parks and Resorts Films Consumer Products Media Networks
0.0%
Internet and Direct Marketing Total Revenues
OBSERVATIONS
?
Total revenues grew at a CAGR of almost 20% from 1984 to 2000 Media networks contributed to revenues only after the purchase of ABC in 1995 Internet and Direct marketing revenues only after 1996 contributed to
?
?
ABSOLUTE Y-O-Y REVENUE GROWTH (1995-96) IN MILLIONS OF $
6627 4078 542
Theme Parks and Resorts
470
Films
1537
0
Consumer Products Media Networks Internet and Direct Marketing Total Revenues
OBSERVATIONS
?
After the acquisition of ABC in 1995, the total revenues for Disney in 1996 stood at $18.7 billion This was almost a 55% increase Y-O-Y Biggest contributor to the increased revenues in 1996 was the Media Networks business
?
?
?
Theme Park business and Films grew less rapidly
REVENUE CAGR
Revenue CAGR
7.9% Total Revenues Internet and Direct Marketing Media Networks Consumer Products -8.2% Films Theme Parks and Resorts -1.9% 10.9% 12.4% 33.7% 0.0% 0.0% 23.9% 0.0% 21.3%
31.0%
1996-2000
1984-95
OBSERVATIONS
?
Total revenues grew much faster before the ABC acquisition Consumer products and Films showed a negative CAGR post ABC Theme Parks showed a steady growth rate before and after ABC’s acquisition Revenues from media networks grew rapidly
?
?
?
NET INCOME CAGR
-6.7% 22.6%
1996-2000
1984-95
OBSERVATIONS
?
Net income grew at 22% before ABC’s acquisition but showed a negative CAGR for four years after the acquisition Internet and Direct marketing divisions showed a consistent negative operating income since 1997 Return on equity was at its lowest from 1984 onwards. Infact, ROE has consistently fallen from 23% in 1995 to 4% in 2000.
?
?
Analysis of DISNEY from the Strategic point of view
THE 6 C’S
?
Capability – Economies of scale Competency – Core Competency - Ability to become market leader Competitive Edge – Experience
?
?
?
?
Competitive Advantage – Share of mind
Sustainable Competitive Advantage - diversification
?
BUSINESS MIX
Theme Parks ? Media ? Films ? Consumer Products ? Internet
?
COHERENT STRATEGY
Go Glocal – Wine in Euro Disney Paris, Roadside Romeo tie up with Yash Raj films in India ? Reporting structure to be changed to reduce workload on Eisner ? Risk taking and vision ? Keep diversifying ? Focus on Strength
?
Tradition, culture and assets that make up Disney ? Cross selling ? Memorable and emotional experience – ‘Magic’ of Disney
?
BUSINESS MODEL
ONE MAN SHOW?
?
Box office market share leapt from 4% to 14% from 1984 to 1987 Expanded animation staff to support release of new animated films every 12 to 18 months Overburdened with too many roles – dispute mediation, labour relations and broad company issues. Eisner must focus only on the Creative aspect of Disney
?
?
PORTER THREE TESTS TO TEST EFFECTIVENESS
OF THEME PARK DIVERSIFICATION
?
Attractiveness test
?
? ?
Fragmented segment High entry barriers Unorganized buyers and sellers
?
Cost of entry test
High fixed costs ? Quelling public skepticism
?
?
The better of test
Theme parks propagated ‘Magic’ of Disney ? Disneyland provided the perfect vehicle for advertising
?
doc_281732080.pptx
The PPT is about history and strategy of disney.
THE WALT DISNEY COMPANY: THE ENTERTAINMENT KING
OVERVIEW OF DISNEY - TIMELINE
Disney Timeline
1954, Theme Parks 1950, TV/Radio 1930, others 1929, Cons. Prods. 1923, Films
1920
1930
1940
1950
1960
OVERVIEW
?
Walter Disney – Founded Walt Disney in 1923 Roy Disney – Walter’s brother
?
?
Sid Bass – Saved Disney from hostile takeovers
Eisner – Disney’s chairman and CEO, 1984 Frank Wells – President and COO, 1984
?
?
Media
WALT DISNEY
REVENUE SOURCES IN 1984
0% 0% 8% 17%
76%
Theme Parks and Resorts Consumer Products Internet and Direct Marketing
Films Media Networks
REVENUE SOURCES IN 2000
1%
38% 27%
10%
24%
Theme Parks and Resorts Consumer Products Internet and Direct Marketing
Films Media Networks
OBSERVATIONS
?
When Eisner joined Disney in 1984, Theme Parks and Films were the two biggest contributors to Revenues In the year 2000, the scenario had totally changed. The single largest contributor to sales was the Media Networks business. Theme Parks and Films were distant second and third respectively Revenues grew from $1.65 billion in 1984 to $25.4 billion in 2000
?
?
REVENUE CAGR
FROM
1984-2000
22.1% 12.1%
21.9% 19.6%
0.0%
Theme Parks and Resorts Films Consumer Products Media Networks
0.0%
Internet and Direct Marketing Total Revenues
OBSERVATIONS
?
Total revenues grew at a CAGR of almost 20% from 1984 to 2000 Media networks contributed to revenues only after the purchase of ABC in 1995 Internet and Direct marketing revenues only after 1996 contributed to
?
?
ABSOLUTE Y-O-Y REVENUE GROWTH (1995-96) IN MILLIONS OF $
6627 4078 542
Theme Parks and Resorts
470
Films
1537
0
Consumer Products Media Networks Internet and Direct Marketing Total Revenues
OBSERVATIONS
?
After the acquisition of ABC in 1995, the total revenues for Disney in 1996 stood at $18.7 billion This was almost a 55% increase Y-O-Y Biggest contributor to the increased revenues in 1996 was the Media Networks business
?
?
?
Theme Park business and Films grew less rapidly
REVENUE CAGR
Revenue CAGR
7.9% Total Revenues Internet and Direct Marketing Media Networks Consumer Products -8.2% Films Theme Parks and Resorts -1.9% 10.9% 12.4% 33.7% 0.0% 0.0% 23.9% 0.0% 21.3%
31.0%
1996-2000
1984-95
OBSERVATIONS
?
Total revenues grew much faster before the ABC acquisition Consumer products and Films showed a negative CAGR post ABC Theme Parks showed a steady growth rate before and after ABC’s acquisition Revenues from media networks grew rapidly
?
?
?
NET INCOME CAGR
-6.7% 22.6%
1996-2000
1984-95
OBSERVATIONS
?
Net income grew at 22% before ABC’s acquisition but showed a negative CAGR for four years after the acquisition Internet and Direct marketing divisions showed a consistent negative operating income since 1997 Return on equity was at its lowest from 1984 onwards. Infact, ROE has consistently fallen from 23% in 1995 to 4% in 2000.
?
?
Analysis of DISNEY from the Strategic point of view
THE 6 C’S
?
Capability – Economies of scale Competency – Core Competency - Ability to become market leader Competitive Edge – Experience
?
?
?
?
Competitive Advantage – Share of mind
Sustainable Competitive Advantage - diversification
?
BUSINESS MIX
Theme Parks ? Media ? Films ? Consumer Products ? Internet
?
COHERENT STRATEGY
Go Glocal – Wine in Euro Disney Paris, Roadside Romeo tie up with Yash Raj films in India ? Reporting structure to be changed to reduce workload on Eisner ? Risk taking and vision ? Keep diversifying ? Focus on Strength
?
Tradition, culture and assets that make up Disney ? Cross selling ? Memorable and emotional experience – ‘Magic’ of Disney
?
BUSINESS MODEL
ONE MAN SHOW?
?
Box office market share leapt from 4% to 14% from 1984 to 1987 Expanded animation staff to support release of new animated films every 12 to 18 months Overburdened with too many roles – dispute mediation, labour relations and broad company issues. Eisner must focus only on the Creative aspect of Disney
?
?
PORTER THREE TESTS TO TEST EFFECTIVENESS
OF THEME PARK DIVERSIFICATION
?
Attractiveness test
?
? ?
Fragmented segment High entry barriers Unorganized buyers and sellers
?
Cost of entry test
High fixed costs ? Quelling public skepticism
?
?
The better of test
Theme parks propagated ‘Magic’ of Disney ? Disneyland provided the perfect vehicle for advertising
?
doc_281732080.pptx