1. What is The Walt Disney Company’s corporate strategy?
·
Create high-quality family
content
·
Exploiting technological
innovations to make entertainment experiences more memorable
·
Expanding internationally
2.
What is your assessment of the
long-term attractiveness of the industries represented in The Walt Disney
Company’s business portfolio?
·
Media Networks
·
This will depend on Disney’s
ability to adapt to changing consumption patterns and evolve in the streaming
era.
·
Parks and Resorts
·
It can be cyclical and is
sensitive to economic conditions and geopolitical factors.
·
Studio Entertainment
·
The film industry remains
attractive in the long term, driven by global demand for entertainment.
·
Consumer Products
·
Can be a steady source of
revenue. However, it is subject to changing consumer preferences and economic
conditions.
·
Interactive media
·
Disney’s investment in the
digital platforms, mobile apps, and gaming shows their commitment to adapting
to these changes.
3.
What is your assessment of the
competitive strength of The Walt Disney Company’s different business units?
·
Disney’s competitive strength
varies across its business units, with a particularly strong position in Studio
Entertainment and Consumer Products due to its extensive portfolio of
franchises and characters. The media networks and interactive media segments
face ongoing industry changes, and Disney has been actively adapting to remain
competitive. Overall, Disney’s strong brand, intellectual property, and
commitment to innovation position them well in their respective industries.
However, continuous adaptation is crucial in the evolving landscape of
entertainment and media.
4.
What does a 9–cell industry
attractiveness/business strength matrix displaying The Walt Disney Company’s
business units look like?
·
High Business Strength = Studio
Entertainment
·
Low Business Strength =
Interactive Media
5.
Does The Walt Disney’s
portfolio exhibit good strategic fit? What value chain match-ups do you see?
What opportunities for skills transfer, cost sharing, or brand sharing do you
see?
·
Content creation
·
Skills in content creation can
be transferred and shared across business units. For instance, popular
franchises and characters from Studio Entertainment can be leveraged for
content in the consumer products segment
·
Streaming Services
·
Skills in content curation, data
analytics and digital marketing can be shared across these segments to optimize
the streaming services performance and customer experience
6.
What is your assessment of The
Walt Disney Company’s financial and operating performance in fiscal years
2015-2019? What is your assessment of the relative contribution of each
business unit to the financial strength of Disney based on the 2018 and 2019
fiscal year financial data?
|
YEAR |
Operating Revenues (In millions) |
Net Income (In millions) |
Operating Activities (In millions |
Total Assets (In millions) |
|
2015 |
52,465 |
8,852 |
11,385 |
88,182 |
|
2016 |
55,632 |
9,790 |
13,136 |
92,033 |
|
2017 |
55,137 |
9,366 |
12,343 |
95,789 |
|
2018 |
59,434 |
13,066 |
14,295 |
98,598 |
|
2019 |
69,570 |
10,913 |
5,984 |
193,984 |
·
With the help of Disney’s
various business units, Disney was able to change from a successful production
studio to a comprehensive interactive experience. From 2015, its net revenue of
52,465 (in millions) has improved steadily. Growth in revenue is a sign of a
successful business
7.
What actions do you recommend
that The Walt Disney Company’s management take to improve the company and
increase shareholder value? Are there specific actions that you recommend to
successfully integrate the 21st Century Fox or improve the
likelihood of success for Disney’s direct-to-consumer and over-the-top media
services? Do you have recommendations for lessening the impact of COVID-19 on
financial performance? Your recommended
actions must be supported with a convincing, analysis-based argument.
·
To improve and increase
shareholder value, and to address the successful integration of 21st
Century Fox, here are some recommendations:
1.
Maximize Disney plus
·
Continue to invest in Disney
plus. Focus on content development, user experience and international expansion
2.
International expansion
·
Focus on expanding Disney’s
global footprint, especially in emerging market
3.
Mitigate pandemic impact
·
Diversify revenue streams and
implement flexible pricing models. Especially in the theme parks and resort
segment
4.
Sustainable cost management
·
Implement efficient cost
management measures to optimize profitability in the face of economic
uncertainties
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