Using Professor Brannen’s concept of recontextualizing strategic assets (see case Exhibit 2), do you think Disney’s strategic assets are in an advantageous position or a disadvantageous position in the Chinese cultural context? Explain. Despite the hard efforts of management, Hong Kong Disney had some difficulties which lead to their ineffectiveness. One of the biggest problems was the Lunar New Year Holiday. It took place when administration of park didn’t take into account some particularities of Chinese people consumption habits and cultural traditions.
Since the United States is only 5% of the total world population, Disney understood the importance in global expansion and entering new markets. (Nickels, McHugh, McHugh, n.d.) One challenge that Disney faced was with the creation of “Tomorrow Land” in Hong Kong. Hong Kong is already living in the future with their technologically advanced civilization. To fix this problem, the Imagineering team created a story of “Tomorrow Land” that was off of Earth to a different planet somewhere in the galaxy (Nickels, McHugh, McHugh, n.d.). If government officials were not bought into the idea of a theme park they could create many barriers and prevent it from happening.
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.
While the essence of the Herculean legend is captured in Disney’s dramatization, it warps the story to keep it fit for a younger crowd, and this leads to some major inconsistencies between the myth and the movie. The addition and removal of prominent characters in the movie, while making the storyline clearer, adds to the number of incidents in which the movie is nothing like the myth. One of the most glaring errors is Hercules’ parentage. While Zeus is the father of Heracles, Hera, his wife, is not his mother. Instead, Heracles was the product of Zeus’ infidelity with Alcmene, the daughter of Perseus.
However, integration does not appear to have had such success. With the acquisition, ABC is effectively forced into purchasing Disney’s content versus the best, and in some cases better, alternatives. As a result, ABC’s ratings have struggled over time (particularly excluding Who Wants to Be a Millionaire) as the end consumer has opted for programming on other stations. Thus, theoretically, other stations are able to charge higher rates for advertising time. While this may be a beneficial arrangement for Disney (i.e.
In order to get a better understanding of the significance that Parks & Resorts has to creating revenue for the company, an external analysis will be conducted using PESTLE and Porter’s Five Forces, specifically focusing on Disney’s theme Parks. PORTER’S FIVE FORCES ANALYSIS The current barriers to entry are high when it comes to theme parks in particular. The top highest players account for a highly concentrated 81.5% of the total industry revenue in 2012 (5). This is a very significant barrier to entry for any prospective new entrant. Along with the market share, there are significant costs for entry associated with acquiring land, investing in public facilities, displays, decoration, rides and attractions (Appendix D).
This breakdown, which is called sticky shed syndrome, causes the image to deteriorate. The Walt Disney Co. made many of its movies available on tape. Buena Vista Home Entertainment, Inc, sold the tapes, which it described as part of a “Golden Collection” or “Masterpiece Collection.” The advertising included such statements as “Give Your Children the Memories of a Lifetime- Collect Each Timeless Masterpiece!” and “Available for Limited Time Only!” Charmaine Schreib and others who bought the tapes filed a suit in an Illinois state court against Disney and Buena Vista, alleging, among other things, breach of warranty. The plaintiffs claimed that the defendants’ marketing promised the tapes would last tapes would last for generations. In reality, the tapes were as subject to sticky shed syndrome as other tapes.
The lagging performance of Disney movies in the 2000’s combined with the combination of the outstanding performance of Pixar films left Disney with a decision to make: to purchase Pixar or to continue with their current partnership? Brief history of the firms: Walt Disney began his company in the 1930’s, and it was not long before he had created the first ever animated feature film. The 1934 release of Snow White and the Seven Dwarfs was the movie that set the standard for Disney, both because it was the first movie of its kind technologically, but also because it was the first time that Disney stocked store shelves with memorabilia around the time of the film’s release. This move would become a trademark of Disney operations. As the firm grew, generating ancillary revenues based on their movies became vital to the success of the company.
The lack of comfortable contexts to air their own opinions and to speak for themselves in public spheres, Chinese Americans’ apathetic attitude toward politics is not surprising. They do not regard themselves as a part of “the public.” Fixing themselves as outsiders or treated as aliens in American society, some new Chinese immigrants born in foreign countries believe American democracy is not
4. What does a 9-cell industry attractiveness/business strength matrix displaying Walt Disney Company’s business units look like? | | Business Strength | | | Strong | Medium | Weak | Market Attractiveness | High | Protect Positions * Studio Entertainment | Invest to Build * Parks and Resorts | Build Selectively * I * nteractive Media | | Medium | Build Selectively * Media Networks | Manage for earnings * Consumer