The Walt Disney Company: The Entertainment King Case Analysis The Walt Disney Company is one of the largest media and entertainment corporations in the world. Disney is able to create sustainable profits due to its heterogeneity, inimitability, co-specialization and immense foresight. It also successfully uses synergy to create value across its many business units. After its founder Walter Disney's death, the company started to lose its ground and performance declined. Michael Eisner became CEO in 1984, and his strategy of expansion and diversification successfully rejuvenated Disney. Over the past 15 years, Disney seemed to be growing for the sake of growth and many problems aroused. It is important for Disney to refocus on its corporate value, and manage its brand, creativity and synergies. Disney's Success in Creating Sustainable Profits The Walt Disney Company had begun as a small animating company and grew into a multinational organization with undeniable profits. Though the company had its down years in its history, it has continued its miracle in success. Disney has long been regarded as a great example of sustainable profits. There are four main criteria for sustainable profits: heterogeneity, inimitability, co-specialization and immense foresight. Unlike other companies, Walt Disney Company's products
Maximilian Scheufler
Strategic Management
The Walt Disney Company: The Entertainment King[1]
I. Why has Disney been successful for so long?
Disney’s long-run success is mainly due to creating value through diversification. Their corporate strategies (primarily under CEO Eisner) include three dimensions: horizontal and geographic expansion as well as vertical integration. Disney is a prime example of how to achieve long-run success through the choices of business, the choice of how many activities to undertake, the choice of how many businesses to be in, the choice of how to manage a portfolio of businesses and the choice of how to create...