CASE 22 store of n the of The Walt Disney Company: Its oversification Strategy i

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CASE 22 store of n the of The Walt Disney Company: Its oversification Strategy in 2014 her John E. Gamble Texas A&M; University-Corpus Christi David L. Turnipseed University of South Alabama he Walt Disney Company was a broadly diver- soe pretty important seeds to make the side of our business even bigger in the years ahead; sified media and entertainment company with a business lineup that included theme parks and resorts, motion picture production and distribu- sion, cable television networks, the ABC broadcast notably, in some of the big, emerging markets but also i some of the more developed markets outside the US We also adopted, I think, just at the right time, seven years ago, a technology-friendly approach, believing television network, eight local television stations, that nothing the company was going to do was going to and a variety of other businesses that exploited the stand in the way of technology and its developments s intellectual property. The company's rev-And, rather than watch technology throw threat after threat at us and disrupt our very valuable business models, we decided to embrace it and use it to not only enhance the quality of our product and the connection we have to our customers and make the company more efficient but, ultimately, to reach more people in more ways. And I'm pleased to say that that has definitely enues had increased from $35.5 billion in fiscal 2007 to $45 billion in fiscal 2013 and its share price had consistently outperformed the S&P; 500 since 2003. While struggling somewhat in the mid-1980s, the s performance had been commendable in almost every year since Walt Disney created Mickey Mouse in 1928. During an investor's conference in May 2012, current Disney CEO Robert Iger com- The other thing that I think is very notable about the company is that, as many businesses as we are in, and as many territories as we operate in, the company is managed in a very cohesive fashion. The credit really belongs to a senior management team that knows where the value is created at the company, is invested in The Walt Disney Company and not in [their] indi- vidual business, and [strives for] coordination between the businesses.·-·[This mindset] is a real distinguish- ing factor or attribute of our company. And it sets us apart from many companies in the world, and it cer- dion in 0tschif manager in 2005 and on its situa- company seven years ago, obvi- business I inherited a great ously a strong brand in Disney and a strong In ESPN. As I look back on the seven years, what I think I'm most proud of is that I made a strong com- pany stronger with the acquisition of some very, very valuable and important brands for the company; nota biy, Pixar and Marvel. And the company today is tainly sets us apart from all media companies. As the company entered its second quarter of 2014, it was coming off a record-setting first quar- s where yw stronger in our capital. And those brands are not only the United States than they were before, stronger globally in but they areter but faced several strategic issues. The company are i had invested nearly $15 billion in capital in its busi- nesses during the past five years,, including a 43 sified in terms of the territories that it does basiness we are still predominantly a US-based in So, while ningwell inor mo eu.we've planted With that in mind, the company is also more diver. anaidy u bate ehime t s bilion theme park in of our botom China, the construction of two new 340-meter ships planted cem th2014 by John E Gamble. All rights reserved. global than we ever have been. And

Explanation / Answer

The long term attractiveness of the industries in the Walt Disney company’s business portfolio range from attractive to very attractive. The focus on television, media properties has ensured that the company has managed to get the eyeballs of millions of viewers which translates into great advertising revenue, this is especially true as it holds rights to the ESPN franchise which has a good presence in both the television as well as the digital media space.

Disney’s presence in the hospitality sector is legendary with its theme parks across the world being hailed as the bellwethers of family based amusement parks. With increased levels of disposable income across the globe, this segment is all set to witness a spurt in their revenues.

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