The Disney Company has been successful and they are a great example of a company that has been able to sustain superior performance. Disney has been able to ward off the competition and sustain a profitable business over the long haul, due to the inability to be imitated – they are protected by various barriers.
Private Information - Disney has created characters and a brand that is unable to be duplicated. Walt Disney learned from his very first character, “Oswald” the importance of legal protection. The value of Mickey Mouse, the Disney Princesses and other characters could very well be the most valuable asset to Disney. The inability to duplicate the characters or the experience they provide continues to add to the company’s superior performance. Size Economies - In addition, the Disney company is vertically integrated which gives the advantage of being a large company with many different business lines. This also gives Disney the advantage of scale, scope and learning economies. For example if a child sees Disney on Ice in her hometown, sees a Disney cartoon on television and a commercial for vacation to Orlando; naturally the child will ask for a trip to Disney World or consumer product from a Disney Store. The highly cultivated relationship between the different parts of the company makes it easy to entice people to take part in all of its business lines. Upgrading - Disney has also increased its sustainability through continuous upgrading. The case states that each of Disney’s business lines was looking to be innovative in its industry. Whether it’s film production, theme parks or consumer products the management team headed by Eisner lives up to the legacy of Walt Disney.
In conclusion, Disney continues to be successful because it has invested in areas that produce growth and added value.