The Walt Disney company

The Walt Disney companyQuestionsDid Disney still have a coherent strategy for its channel mix?No. Its mix of creative production, stage business expansion and grocery storeing was hampered by financial restraints and increased competition between divisions.Did Eisners 20% suppuration stigma still make sense, particularly when Disney faced ever-increasing competition across all its businesses?No. The expansion of the market previously cornered by Disney had become a threat. The market share was stratified. With the creative teams facing difficult management guidelines it was challenging to create new innovative products. Further, Disney would reduce marketing ventures to cut costs.Disneys expansion into former(a) ventures, much(prenominal) as television and non-animated based film distribution and production, were high-risk, high-reward ventures. While some of these high-risks were successful they further deviated from the core moodls and products of Disney. They also did not offer the showcase of cross-promotion and marketing opportunities previously provided through the standard Disney brand.Can Disney be run successfully by single person?No. Eisner attempted to be both a leader and a manager. Disney required a manager who could balance and shape the different divisions while encouraging Eisners vision of a holistic system.Does Eisner need to transpose his approach to running his entertainment empire?No. Eisners primary strategy involved synergy, both vertically and horizontally. Eisners idea of synergy includes cross-marketing and branding. This is successful amongst the core of Disney activities and products, such as theme parks, licensed characters, and branded items (such as toys). The vertical component of the core brand involved the distribution and production aspect of Disney an ability to leverage costs. This was a successful strategy.However the expansion of Disney into former(a) entertainment venues proved challenging. There were limited opportunities to cross-market television production with other parts of the company (Disney movies on TV). There was not an opportunity to brand a live action films via the integrated, synergistic marketing systems at the core of the company. For every ESPN spawning a restaurant there was a ABC television show with no ability to expand revenue beyond its initial value.IntroductionIn 1923 Walter Elias Disney moved to Hollywood, California where he founded the Disney Brothers Studio (Disney) with his brother Roy. The company suffered a rocky start however the creation of Mickey Mouse in 1928 and the introduction of synchronized sound provided Walt the pulse he needed to get the company moving forward. The success of utilizing synchronized sound taught the Disney brothers how technology would be a key factor in growth. The ground-breaking rough feature film Snow White and the Seven Dwarfs began Disneys foray into the licensing of its products. Brand management became a fundamental i deal at Disney.As the company released to a greater extent successful films it realized the value of a holistic marketing approach. Disney diversified its holdings creating a conglomerate including Walt Disney Music Company and Buena Vista Distribution. Disneys goal was to management their ventures from head start to end. Cross-marketing and branding continued to be fundamental concepts in Disneys endeavors, including its investment in theme parks and television programming. Over the next decades all new divisions were a part of Disneys large scale marketing machine. Each division fed each products and creative outlets. However as creativity dwindled due to financial pressure the company suffered Disney required products to maintain its market share.When Michael Eisner took the helm at Chief Executive Officer (CEO) of Disney in 1984 he sought to again instill Walt Disneys pilot burner concept into the company. He announced a goal of growing Disney shareholder equity (net worth) 20% per year. Eisner believed in managing creativity, or encouraging development divisions to work collaboratively with business divisions. Eisner understood Walts initial management concept of balancing the corporate ideals of quality, entrepreneurship, and teamwork.Eisner pushed the Disney to heavily reinvest in its original products, such as television production and films. With Disney solidifying its market share it was free to undertake new ventures in live action films, high tech animation production, and new theme parks. Eisner utilized these new ventures in the same manner Walt built his company cross-marketing and brand management.But as Eisner expanded the company to meet his annual net worth rate of growth Disney undertook a number of high-risk/high-reward ventures. As the conglomerate grew Eisners micro-management style was unable to produce the success it once had attained.Further discussion of marketing.Growth/How Disney grew (theme parks, etc)How Disney changed acqu isition of other organizations/firmsNature of the ProblemSuffered a major slump starting in 1994 until the turn of the century.1994-2000, lost several high-level executivesEisner took on sole leadership of the organizationSynergy did not account for the culture of new acquisitionsWhen merging firms/media ie Touchstone Television from NY to LA (p12).Seen as traditionalAlternatives of the FirmOverall idea for all alternatives is that 20% growth is unreasonable. Growth rate should be development on a medium term scale 5 years at a time.Status QuoDisney continues with Eisner at the helm and no President to work in finance, mediation, and labor relations. Continues current strategy of controlling costs and placing a financial check on division managers.One Company Two Major DivisionsSeparate Entertainment Divisions into Adult (ABC Television, Touchstone, Hyperion Books) and Childrens (Buena Vista television, distribution, publishing and theme parks)New leadersUse Eisner to continue syn ergy through the hiring of an experience President/COO.Fire Eisner and establish a new management that is experienced in large conglomerates and cross-marketing fade to Basics creativity, animation, stories w/good moralsThe green movementReligion/wars/differencesTake more international theme and selling ConceptsBrand ManagementCross-Promotion/MarketingHolistic Management of ProductRecommendationsCombination of New Leadership and One Company/Two Divisions. Bring in President/COO to work with divisions. reverse creative divisions from strong-armed financial management to increase opportunity for cross-promotion. Separate company into two primary factions to preserve the Disney name one related to family entertainment.