An analysis on Disney

Résumé du document

Disney Corporation was founded 87 years ago. It is an international company specialized in entertainment and media. Today, Disney is the biggest company in the world in this field. It is involved in the entertainment, media, tourism, and leisure fields. It also contributes in the distribution of other productions. In the beginning, the company was an entertainment studio, which had considerable success thanks to the Mickey Mouse program. It then developed other activities. It is now composed of 4 strategic business units: - Studio entertainment: this SBU is composed of cinema, music and theater divisions. Motion pictures are distributed by Disney under Walt Disney Pictures, Touchstone pictures, Hollywood Pictures and Miramax Films. - Consumer products: this SBU is in charge of the merchandising and develop many products based on the Disney brand. Disney Publishing worldwide is the leader in the children's book publication sector. Moreover Disney owns an official shopping portal. - Parks and resorts: it runs the theme parks and holiday resorts business. These places are dedicated to make "dreams come true". - Media networks: it gathers all the entities involved in promotion and advertising in the media sector: television, internet, radio, newspapers etc.

Extraits

[...] Suppliers are all the factors which allow to Disney to earn money. For example, to operate Disneyland Resort Paris, the company works with restaurants, and shops. They need to appeal to a targeted community, based on factors like human resources or transport. Suppliers can influence the profit of Disney, by affecting the time of the shipment, the price and the quality of the product Threat of potential new entrants New entrants are influenced by entry barriers, the initial investment (like financial investments), and patents. [...]

[...] They can negotiate the price and the sales condition as well as what determines the profitability of the market. The power of the clients power is magnified when they are concentrated, when the suppliers are numerous and widespread, and when there are a lot of substitute products. All the customers who watch movies and cartoons, and to entertainment parks and hotels may be considered clients. They have the power to change their preferences. Most of customers who go to parks are families. [...]

[...] In 2009, the Company's revenues reached 36,149 billion $ and were divided among the different divisions as follows: - Studio entertainment : million $ - Consumer products : million $ - Parks and resorts : million $ - Media networks : million $ - Interactive media : 712 million $ - Competitive analysis Disney faces competition, not only in the media and television sector, but also in alternative forms of leisure and entertainment. CBS Corporation is an international mass media conglomerate which operates in broadcasting, publishing, television, radio, advertising, merchandising and motion pictures. Its revenue in 2008 was of 13.9 billion Most of its operations are limited to the USA. News Corp. (Fox, MySpace, and New York Post) is the world largest media conglomerate after the Disney World Company. [...]

[...] This alliance creates a strong competition for Disney because they deal with producing films, television networks, sports and also all the related by-products. - Video Audio Communication (Viacom) includes a motion picture division for cinema with Paramount, DreamWorks, United International Pictures, and MTV films; a cable television division with comedy central; and a publishing division which also extends online, and is more like other Viacom interactive ventures. Viacom is the world's third largest media company. They are a serious competitor for Disney in the area of television programming. [...]

[...] It also contributes in the distribution of films for other production houses. At inception, the company was a studio entertainment organization, which was very successful, thanks to the Mickey Mouse program. Subsequently, it developed in other areas too. Owing to this success, Disney is now composed of 4 strategic business units: - Studio entertainment: this SBU is composed of cinema, music and the theater division. Motion pictures are distributed by Disney under Walt Disney Pictures, Touchstone pictures, Hollywood Pictures and Miramax Films. [...]