The Business Model Canvas Adapted For Luxury Strategists - DISNEY

Key Operations Value Propositions Key Activities Customer Segments Customer Relationships

Media and Entertainment Distribution: Disney’s ● Content Creation and production

streaming services like Disney+ and Hulu, as well ● Global Mass Market: providing ○ Storytelling in these productions ○ Disney's target audience are all ○ Disney is constantly conducting
as oversight of major studios like Walt Disney entertainment to people of all ages is a key activity among Disney groups and genders this is research through surveys to
Animation Studios, Pixar, Marvel Studios, and worldwide - one of the leading ○ Disney + is also a key activity of reflected in their wide range of ensure they are fulfilling
Lucasfilm. Content creation, sales, and entertainment providers globally the brand as it is their main content, merchandise, and customer needs.
distribution are centralized under this division. ● Children: provides fantasy, adventure and streaming channel attractions and services. ○ Disney taps into nostalgia for
Parks, Experiences, and Products: Disney's stories at each touchpoint (i.e. film, ■ The channel provides ○ Their audience is located their customers' experience to
theme parks, cruise lines, and other recreational theme parks, experiences, TV etc) movies and TV shows worldwide but the largest recreate environments of their
offerings. It focuses on providing high-quality ● Creates both digital and IRL experiences from older classics and audience is in North America and childhood experiences with
guest experiences and innovative products. This for families to experience all around the Disney Channel movies Canada Disney characters.
division also manages the extensive world. ■ Aims to appeal to older ○ The Disney parks experience is ○ Leveraging Immersive
merchandising operations associated with ● The brand provides a consistent audiences as well with targeting to middle income Storytelling
Disney’. message across all channels of other productions such families - People earning ○ Disney's Magical Customer
Direct-to-Consumer Services: managing the interaction with consumers, no matter as the Marvel franchise between $50,000 to $74,000 Experience: “Disney treats every
subscription and advertising aspects of Disney's where they are located globally. ● Branding desire to visit Disneyland the guest, no matter if it’s their visit or
streaming services such as Disney+ and Hulu. ● Links: ○ Disney does brand deals with most. However, the highest their hundredth, like a VI.”
Recent efforts have focused on increasing (https://businessmodelanalyst.com/disney many fashion houses but also income groups of $150,000 and ■ They achieve this by
subscription growth, improving retail pricing -business-model/) + with their subsidiaries in order to $200,000 are least likely to desire personalising their
strategies, and enhancing ad revenue through (https://thewaltdisneycompany.com/about increase awareness of the overall visiting Disney. service to them by
more targeted and effective advertising methods. /) + (https://thewaltdisneycompany.eu/) Disney brand understanding each
International Operations: Overseen by regional ○ Disney Stores in major cities are guest through active
leaders, this division handles Disney's media, a key way that Disney promotes engagement and
entertainment, and sports content and operations it’s brand image and is a key feedback.
outside of North America. activity of the brand ○ Disney conducts regular training
Content Sales and Licensing: distribution of ● Marketing sessions to all their employees
Disney films and series to third-party platforms, ○ Disney’s marketing tool is across all their segments to
as well as the licensing of Disney-owned content emotional marketing aiming to reinforce the company's goal to
to other media outlets. Recent shifts in this area appeal to audiences through create happiness for their
reflect changes in consumer preferences towards emotional content customers, employees are not
digital media. ○ Disney markets their movies and allowed to say “I don’t know” and
Sports: Managed primarily through the ESPN projects on all social media must be well equipped to handle
brand, this includes broadcasting of sports ○ Their parks are an important part any situation with a solution.
events, sports content production across various of their advertising for new
platforms, and managing sports-related digital Key Resources movies as well as their older Channels
and audio services. projects such as their classics
Disney has strong, global recognition that helps ● Licensing ● Multiple distribution channels for
Strategic initiatives such as digital transformation, ensure customer loyalty and trust. Their customer ○ Disney is a world leader in consumers to experience the brand:
increasing focus on direct-to-consumer channels, base spans across multiple generations and are licensing their name for various ○ Disney+ (i.e. TV, movies,
and leveraging technology to enhance user driven by emotional connection to Disney's uses musicals)
experiences across all Disney services. storytelling abilities and characters. ○ DisneyLicensing.com → website ○ Movie theatres (live launch of
where it all the info on their new movies)
Structural Organisation Intellectual Property (IP) licensing is ○ Shopping (i.e. Disney Springs)
- Their iconic franchises and characters ● Parks & Resorts ○ Sports (i.e. Wide World of Sports
Leadership: such as Mickey Mouse, Disney ○ Remains a key activity for Disney and ESPN)
Bob Iger is the CEO. Princesses, Marvel superheroes, etc. are in their business ○ Theme parks + resorts
Alan Bergman and Dana Walden co-chair Disney the backbone of Disney's brand value ○ Source of revenue ○ Social media (multiple platforms
Entertainment, overseeing all entertainment and content creations. depending on the slice of Disney
content. - Their extensive entertainment portfolio you are looking for)
Jimmy Pitaro heads ESPN, focusing on sports from films, series, and other media forms ○ Musicals (i.e. The Lion King,
content and operations. are crucial revenue streams for the Frozen, Wicked etc)
Josh D’Amaro leads Disney Parks, Experiences, company through licensing and streaming ○ Digital platforms (i.e. brand
and Products, covering theme parks and services. website)
consumer products. ○ Stores + Disney
Physical Assets activations/products with
Structural Divisions: - The company has world famous theme subsidiaries
1. Disney Entertainment: Manages film studios parks and resorts in various global ○ Sponsorships of cross-industry
like Pixar and Marvel, and TV networks such as destinations from Disneyland, Disney events, campaigns and
ABC and FX. Also oversees streaming services World, and Disney cruises. entertainment ventures
like Disney+ and Hulu. - They are major revenue and touchpoints ● The brand values are integrated
2. ESPN: Includes sports networks and for the company. throughout every touchpoint that a
platforms like ESPN+. - They also have advanced studios and consumer experiences within the
3. Disney Parks, Experiences, and Products: production facilities to create high quality channels utilised by Disney
Encompasses global theme parks, resorts, and films, shows, and animation projects. ● Links:
merchandise. (https://businessmodelanalyst.com/disney
Operational Focus: Emphasizes creativity, digital Tech Portfolio -business-model/)
media, and streaming, aiming to streamline - Their streaming platforms like Disney+
operations and improve efficiency. provide entertainment directly to their
Global and Functional Management: consumers.
International operations are managed regionally, - Data analytics to help personalise
with centralized support functions enhancing customer experiences, optimise
company-wide coordination and efficiency operation, and seamlessly inform
strategic decisions.
- Disney also invests in strong
cybersecurity to both protect themselves
and their customers' data and to highlight
their operational integrity.

HR
- They have an immense team of writers,
directors, animators, musicians, and
more creative professionals to help
innovate and produce high quality Disney
content.
- Experienced executives and managers
that oversee daily operations and provide
strategic guidance across all business
sectors and units.
- Operational staff also receive frequent
training and workshops to ensure 5 star
service and deliver exceptional customer
service to create that magical experience
Disney is known for.

Partnerships
- The brand executes strategic
partnerships and collaborations for wider
reach and exposures to different markets.
- Disney also does licensing agreements
with partnerships for merchandising,
video games to further expand their
reach.

Sustainable Policy & Action Revenue Streams

● Disney has current goals and targets in relation to how their business remains sustainable * Media Networks: This segment includes a vast array of broadcast, cable, radio, publishing, and
(https://impact.disney.com/environment/environmental-sustainability/) digital businesses including the ABC Television Network, Disney Channels, ESPN, and more. It
○ Emissions, water, waste, materials & sustainable design generates revenue primarily through affiliate fees, advertising sales, and network subscriptions.
○ Reducing emissions
■ Disney Resort partnered with Reedy Creek Improvement District to begin development of 75MW solar facilities generated $22.33 billion in one quarter, with a slight annual decline of 0.8% in revenue. However, it
○ Disney Parks contributed significantly to the overall company revenue, representing 62.7% of the total, but only
■ Disney is committed to conversing water especially in their parks where they use a re-use water system 31.9% of the operating income due to high costs associated with streaming investments.
■ Single use plastic is no longer used to any Disney theme park
○ Disney aims to “green” the production of their films and TV shows * Parks, Experiences and Products: Covers Disney’s theme parks, cruise lines, and other recreational
■ Switched to low emission energy sources and educating cast and crew on best environmental practices facilities worldwide such as Disneyland and Walt Disney World, as well as related products sold in
● Disney has sustainability goals which they hope to achieve by the year 2030 retail and online stores. Revenue comes from ticket sales, hotel bookings, merchandise, and food and
beverage sales.

This segment showed a strong recovery from pandemic impacts, with a revenue jump of 12.6%,
reflecting high consumer demand for Disney's parks and experiences.

* Studio Entertainment: Disney produces and acquires live-action and animated motion pictures,
direct-to-video content, musical recordings, and live stage plays. This segment benefits from box office
revenue, film and music distribution rights, and licensing fees.

* Direct-to-Consumer & International: This segment includes all Disney’s international media
businesses and its direct-to-consumer streaming services like Disney+, Hulu, and ESPN+. It earns
 money through subscription fees, sales of advertising space, and content distribution agreements.

This segment has been growing, showing a 9.2% increase in revenue to $5.53 billion in a recent
quarter. This growth was driven by subscription revenue despite a decline in advertising revenue.

* Content Sales/Licensing and Other: Disney licenses its intellectual property (IP) for use in various
forms such as television, merchandising, video games, and themed experiences, generating revenue
from licensing fees and royalties.

Tech Policy & Action Leadership Structure & Business Model

○ Disney has always implemented the latest technology within their business, anywhere technology can be added for the guest experience. ● Leadership Team (https://thewaltdisneycompany.com/about/)
○ In Disney Theme parks the company applied for a patent to collect customer data. ○ Executive Leadership
○ Operating labs to test out new technologies like AI, AR/VR, and blockchain ■ Executive team made up of various members which oversee all aspects of
Data Privacy Policy the Disney company
- Ensuring compliance with global data protection regulations through GDPR and CCPA to maintain customer trust. ■ CEO - Bob Iger
Agile Development ■ SVP & CDO - Tinisha Agramonte
- Adopting agile methodologies in software development to enhance efficiency and responsiveness to market changes ○ Board of Directors
■ Executives from a wide range of industries that provides a wide variety of
knowledge and insight for the future of the Disney company and any
endeavours
○ Oversees all of the titles under the Disney portfolio with each subsidiary having their
own leadership team and CEO
● Full Disney business portfolio
○ Walt Disney Studios, Walt Disney Animation, Pixar, Marvel Studios, Lucasfilm, Disney
Theatrical Group, 20th Century Studios, Searchlight Pictures, 20th Television, abc
Entertainment, Abc News, abc Signature, abc Owned Television Studios, Disney
branded television, Freeform, FX, Hulu, NatGeo, Hulu Origionals, Disney+, Hotstar,
Disney Music Group, ESPN, ALL companies associated with their theme parks