We started off with the company which
taught us how to communicate with our
loved one’s anytime anywhere
Then a company which gave
the common man the power
to use high end Technology
without burning our pockets
Now, we will be ending out Journey with a
Company, which made us believe in Fairy’s,
Billionaire Ducks and a Mouse who can talk
An American Diversified Multinational
Mass Media Corporation Headquartered
In California
World's Second Largest
Broadcasting And Cable
Company In Terms Of
Revenue US$ 45.041 Billion
(2013)
Founded On October 16, 1923
By Walt Disney And Roy O. Disney
Some historical clues…
1923: launches the Disney Brothers Studio
1940: Walt Disney goes public
1949: Walt Disney music company is formed
1954: Treasure Island, Disney's first completely live-action feature, is released.
1955: Disneyland, the first Disney park opened in California
1983: First major international expansion, Tokyo Disneyland
1987: The first Disney Store opens, in Glendale, California
1991: Hyperion Books, a Disney publishing company, releases its first book, Amazing Grace.
1995: Disney bought ABC, second biggest acquisition in US history at the time
1996: Disney Online launches Disney.com
2000: Disney begins its Gold Classic Collection DVD line.
2006: Disney Cinemagic launched in United Kingdom.
2014: Frozen wins the Academy Award for Best Animated
Feature at the 86th Academy Awards, becoming the
first win in the category for Walt Disney Animation Studios.
“If You Can Dream It You Can Do It!”
- Walt Disney
WALT DISNEY DIVERSIFIED
Media Networks Park and Resorts
• ESPN • Disney Land Resort
• Disney/ABC Television Group • Walt Disney World Resort
• ABC Entertainment Group • Tokyo Disney Resort
• ABC News • Disneyland Paris
• ABC Owned Television Stations • Hong Kong Disneyland
Group • Disney Cruise Line
• ABC Family • Disney Vacation Club
• Disney Channels Worldwide • Adventures by Disney
• Walt Disney Imagineering
“All Our Dreams Can Come True, If We Have The Courage To Pursue Them.”
- Walt Disney
WALT DISNEY DIVERSIFIED
The Walt-Disney Studios Disney Consumer Products
• Walt-Disney Studios Motion • Disney Licensing
Pictures • Disney Publishing Worldwide
• Marvel Studios • Disney Store
• Touchstone Pictures
• Walt Disney Animation Studios
• Pixar Animation Studios Disney Interactive Media Group
• Disney Music Group
• Disney Nature • Disney Online
• Disney Theatrical Group • Disney Games
“It's Kind Of Fun To Do The Impossible.”
- Walt Disney
DISNEY - CONTRIBUTION OF SEGMENTS TO
REVENUES (2013)
Media Networks 45% ($20,356)
Parks & Resorts 31% ($14,087)
Studio Entertainment 13% ($5,979)
Consumer Products 8% ($3,555)
Interactive 3% ($1,064)
“The Difference In Winning & Losing Is Most Often, Not Quitting.”
- Walt Disney
Integration Strategies
Vertical Horizontal
Integration Integration
Forward Backward
“Happiness Is A State Of Mind. It's Just According To The Way You Look
At Things.” - Walt Disney
FORWARD INTEGRATION
• Buena Vista Distribution
• Food and merchandising operations within Theme Parks
• Launch of the Disney Channel in 1983
• Disney Stores, “retail as entertainment concept”
• Disney Online as a distribution channel
“I Am A Patient Listener, But Opinionated To The Point Of Stubbornness When
My Mind Is Made Up.” - Walt Disney
BACKWARD INTEGRATION
• Walt Disney Animation Studios
• In house travel company to work with travel agencies, airline
and tours in order to bring customers
• Walt Disney Music Company formed to control Disney’s
music copyrights
“Whether You Say You Can't Or You Can, You're Right.”
- Walt Disney
HORIZONTAL INTEGRATION
• Acquisition of CapCities/ABC, to own a programming
distribution channel
• ESPN Zones
• Marvel
• Cruise Ships
• Disney Pixar acquisition
“The Way To Get Started Is To Quit Talking And Begin Doing. ”
- Walt Disney
ACQUISITONS
1989: Jim Henson Productions, including The Muppets.
1993: Film distributor Miramax films ( $60 million )
1995: DIC Entertainment, and acquires the rights to its shows
1996: Capital Cities/ABC group renaming it ABC, Inc.
1996: Jumbo Pictures, producer of the Nickelodeon animated series Doug.
2006: Pixar Animation Studios
2007: New Horizon Interactive along with Club Penguin.
2009: Marvel Entertainment
2012: Lucasfilm from George Lucas, including its Star Wars and Indiana Jones
2014: Maker Studios
“Let Your Heart Guide You...It Whispers So Listen Closely.”
- Walt Disney
• January 24, 2006 agreed to buy Pixar for approximately $7.4 billion in an all-stock deal
• Steve Jobs owned 50.1% shares in Pixar
• Steve became Disney's largest individual shareholder with 7% with and a new seat on B.O.D
• Pixar shareholders received 2.3 Disney Shares / Pixar common stock redeemed
• Disney acquired 100% shares of Pixar and made it a wholly-owned subsidiary
“For Every Laugh, There Should Be A Tear.”
- Walt Disney
WHY Disney BOUGHT PIXAR?
• Disney Didn’t Have 3D animation Capabilities of PIXAR
• PIXAR’s Patented 3D Technologies were superior
• Acquisition added to Disney’s 3D animation competencies (Horizontal)
• Curtailing the Competition and value addition to Disney portfolio
“When You Believe In A Thing, Believe In It All The Way, Implicitly And
Unquestionable.” - Walt Disney
• In 2009, Walt Disney Company acquired MARVEL for $4.64bln
• MARVEL shareholders received,
$30 and about 0.745 Disney shares/ MARVEL share
• Disney paid $4.2 bln in cash with distributed shares valued at $1.9 bln
“No Matter How Your Heart Is Grieving, If You Keep On Believing, The Dreams
That You Wish Will Come True.” - Walt Disney
WHY Disney BOUGHT MARVEL
• Failure in capturing Young Male Markets with existing Shows/Characters
• Acquisition of MARVEL allows to cater that segment (Horizontal )
• Disney (Girls) + MARVEL (Boys) = Synergy
• More content opportunities for it’s abc Channel
• AGENTS of S.H.I.E.L.D
•
AGENT CARTER
• MARVEL Characters in Disneyland
“The Past Can Hurt. But The Way I See It, You Can Either Run From It,
Or Learn From It.” - Walt Disney
WHY Disney BOUGHT MARVEL
• Disney : Comic Books +Movies+TV Shows
• MARVEL :Comic Books
• MARVEL (Supplier) Disneyfor Movies/TV Shows (Vertical )
• Acquisition of MARVEL’s Intellectual Properties (Vertical)
“The Flower That Blooms In Adversity Is The Rarest And Most Beautiful Of All.”
- Walt Disney
INTERNATIONALIZATION
• Tokyo Disneyland (1983)
• Disneyland Paris (1992)
• Hong Kong Disneyland (2005)
• A Shanghai Disneyland (end of 2015)
• The Walt Disney Company India (1993)
“After The Rain, The Sun Will Reappear.
There Is Life. After The Pain, The Joy Will Still Be Here.” - Walt Disney
CO-OPERATIVE STRATEGY
Licensing agreements with :
• M-GO, digital movies and TV streaming (2013)
• Russian state broadcaster Channel One (2007)
• Toggle multi-year (SVOD) (2014)
• EA Games multi-year licensing agreement for Star Wars games (2006)
Franchise agreement with :
• Delhi-based RJ Corp for some 150
'Disney Artist' brand stores across India
“Its Fun To Do The Unexpected.”
- Walt Disney
CO-OPERATIVE STRATEGY
Joint ventures :
• Disney & BesTV Agree to Form Digital Joint Venture in China
• IndiaCast and Disney
• Disney joins Fox and NBC as J.V partner of Hulu
When You're Curious, You Find Lots Of Interesting Things To Do.”
- Walt Disney
COMPETITIVE DYNAMICS
SLOW CYCLE MARKET
Competitive Advantage Pixar-Disney
Pixar best know for CGI-Animated
feature films created with Photo
Realistic Render Man helping to give
high-quality images
Sustainability High
Imitation Costly
Strategy They majorly concentrate in
Entertainment section
REFERENCES
http://
io9.com/5349561/disneymarvel-what-does-disney-actually-get
http://screenrant.com/disney-marvel-deal-2-pauly-23687/2/
http://
www.law.illinois.edu/bljournal/post/2009/09/20/Marvel-and-D
isney-A-Merger-with-Character.aspx
http://dizbizblog.wordpress.com/
I Only Hope That We Don't Lose Sight Of One Thing –
That It Was All Started By A Mouse.