Case Analysis

Case Analysis

  • Submitted By: opfairy
  • Date Submitted: 12/07/2013 2:53 AM
  • Category: Business
  • Words: 527
  • Page: 3
  • Views: 113

Question
Walt Disney Company has four major strategic business units: movies (Touchstone), theme parks, consumer products, and television (primarily cable). Place each of these SBUs on the BCG matrix based on your knowledge of them.

Answer
By analyzing online data and discussion in pairs, we came to the conclusion that the stars are the movies; the cash cows are the theme parks; the dogs are the television; and the question marks are the consumer products.
We believe that movies are stars, because it fits the definition of the star——a large market share and high business growth rate. According to some statistics of recent 3 years, there are more than 3 Disney movies on in China in the first half of each year. In 2010, Alice's Adventures in Wonderland, Prince of Persia: The Sands of Time and Toy Story 3 made Disney become a large box office only second to 20th Century Fox. In 2011, 4 Disney block-busters including Pirates of the Caribbean:On Stranger Tides ran in China, which accounted for 25 percent of the overseas film market. With its potential for future growth, this business unit will generate profits and a positive cash flow.
As for the theme park, we think it is the cash cow. To begin with, Disney created the theme park. It is definitely a brand new area that no one has reached before, so it is a dominant business in the industry. Although Disney has many opponents, such as Universal, it is obvious that Disney is the leader of the industry with a large market share. Also because of its original design, people of different ages, from different countries, can enjoy their time in the theme parks. In addition, the brand effect and the cartoon star effect create a best environment so that investments in advertising and plant expansion are no longer required. According to the data from Disney’s official website, the theme park is the main resource of the income and most of the revenue from theme parks is used to produce movies, so it can...

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