1. Walt Disney’s corporate strategy is centered on creating high-quality content, exploiting
technological innovations to make entertainment experiences more memorable, and
international expansion. They are doing this by acquiring companies like Pixar and
Marvel to enhance the resources and capabilities of their animation business while also
adding new animation skills and characters. The 2011 acquisition of UTV was done to
facilitate its international expansion efforts. The acquiring of Lucasfilm’s Star Wars
franchise in 2012 allowed Disney to make new films in the series and integrate Star Wars
into their other business units, such as theme parks. In 2019 when Disney purchased 21st
Century Fox it expanded their portfolio with more high-quality content and channels such
as National Geographic, and FX. Disney’s corporate strategy also requires sufficient
capital to be allocated to their theme parks and resorts to keep an advantage in the
industry. They are doing this by adding additions to their theme parks with attractions of
their most popular movies.
Media
Networks
Direct-to–
Consumer
Parks and
Resorts
Industry
Attractiveness
Measure
Importance
Weight
Attractiveness
Rating
Weighted
Score
Attractiveness
Rating
Weighted
Score
Attractiveness
Rating
Weighted
Score
Market Size
0.20
8
1.60
9
1.80
9
1.80
Industry
Profitability
0.20
7
1.40
8
1.60
9
1.80
Emerging
Opportunities
0.15
6
.90
7
1.05
9
1.35
Intensity of
Competition
0.10
7
.70
8
.80
6
.60
Cross-Industry
Strategic Fit
0.05
7
.35
8
.40
10
.50
Product
Innovation
0.20
7
1.40
8
1.60
9
1.80
Social,
Political, and
Environmental
Factors
0.10
6
.60
5
.50
4
.40
Sum of
Importance
Weights
1.00
Weighted
overall
industry-
attractiveness
scores
6.95
7.75
8.25
2. Media networks plays a large part in their revenue due to the large expansion Disney has
been able to achieve. While making originals, Disney has also been able to acquire
companies such as Pixar, Lucas Films, and Marvel. Along with these purchases Disney
also purchased 21st Century Fox which made their portfolio have an even larger amount
of high-quality content to choose from. While these media network purchases are
extremely costly, the benefits are able to outweigh the extra money being spent. Disney
has strong financial stability where they are able to spend a hefty price to purchase these
companies because it benefits them greatly in the end. Direct-to-consumer has the second
highest overall attractiveness. The content Disney purchases is able to be put on their
streaming platform (Disney+) and they are able to make sequels and TV shows based off
of hit movies they have acquired such as Star Wars. This further diversifies Disney’s
portfolio and increases their industry attractiveness. Disney’s idea for theme parks and
resorts has resulted in a very profitable and niche market that no competitor has been able
to replicate. The parks and resorts have been able to attract families from all over the
world and has given Disney opportunities to expand their parks and resorts globally. The
parks are able to give customers an interactive experience with Disney’s most popular
movies and characters, which is why this is their most attractive industry. While the parks
are extremely profitable, they are prone to environmental factors such as COVID-19. The
parks and resorts took a huge hit during the pandemic and needed to close to follow
COVID protocols, which resulted in a huge profit loss. With Disney’s financial stability
and brand recognition they will surely be able to recover from COVID and continue to
expand internationally.
21st
Century
Fox
In Media
Networks
Disney
World
In Parks
and
Resorts
Disney+
In direct-to–
consumers
Industry
