Disney Case Analysis

997 Words4 Pages
The Walt Disney Company: The Entertainment King The main issue in this case is the conflict between Eisner’s main goals and the way to go about achieving them. According to the case, one of Eisner’s goals was to keep the return on equity above 20% and to maximize the shareholders’ wealth. While he was able to pull this off within his first 15 years, where he generated an annual return of 27%, this number was hard to maintain. This number was well above the industry average and thus hard to maintain. According to the case, another one of Eisner’s goals was to build the company while maintaining its original core values. This at times proved to be tough in that the environment that the industry is in consistently changes and progresses. At times, the changes in the environment came in direct conflict with what the Disney brand stood for. When these conflicts arose, Eisner did not budge so easily which at times hurt the company in that it was slower to move on to more progressive ideas. Although I feel it is great to stick to your core values, as a company, sometimes you have to go against those in order to remain profitable, especially if your profit goals are very high. According to the case, Eisner needs someone like Wells, who will handle more of the business aspect of the company to free Eisner and allow him “to do what he does best-think creatively about everything from movies to international theme parks.” One of the reasons Disney has been successful for so long is due to its creativity. Disney’s ability to continue to release blockbuster hits is unheard of within the industry. According to the case, beginning with the movie Down and Out in Beverly Hills, the next 27 of Disney’s 33 movies were profitable. Comparing this to the industry where nearly 60% of all movies lost money, this is amazing. The company’s strategy to focus more on

More about Disney Case Analysis

Open Document