Walt Disney Company Case Study
Managing the Magic
Magic happens at the happiest place on earth. At least that’s what the folks at the Walt Disney Company (Disney) work hard to make us believe. However, the difficult business climate in 2008 and 2009 challenged Disney, as it did many other well-managed companies. CEO bob Iger and his top management team are working hard to conjure up their own magic; that is, to find the best way to strategically maneuver the company to proper despite the environmental uncertainties.
Disney has had a long record of successes and the “Disney Difference” is noticeably apparent. What is the Disney Difference? It’s “High quality creative content, backed up by a clear strategy for maximizing that content’s value across platforms and markets.” From books toys and games to online media, sound tracks, and DVDs. Disney exploits its rich legacy of products through quality creative content and exceptional storytelling. Some of these products include, among many others, The Lion King, Toy Story, The Jungle Books, Cars, Disney-ABC Television, and ESPN programming. Although Disney is a U.S.-based company, its businesses span the globe with operations in North America, Europe, Asia Pacific, and Latin America. Its latest push is Russia, a large untapped media market, where it’s planning a broadcast version of the Disney Channel. The president of Walt Disney International says, “The company is also funding $452 million expansion of the Disneyland theme park in Hong Kong in hopes of boosting poor attendance figures. One of the new themed areas called Grizzly Trail is “set in an American frontier gold-mining town and features a roller coaster patterned after a runaways mine train.” Despite its magical touch, just a few short years ago, Disney wasn’t such a happy place.
When Bob Iger was named CEO in 2005, analyst believed that the Disney brand had become dated. And, there was this sense that Disney’s target audience was young and that its...