Principles of Marketing 308
November 14, 2006
Walt Disney Corporation
Founded in 1923, the Walt Disney Company has predicated itself as the world’s best in the family entertainment business. After 80 years in the business, who could argue with that statement? Today, Walt Disney Corporation dominates the market of family entertainment. An unparalleled experience is the direct affect of superior quality, innovative content, and brilliant storytelling. To capture such a highly diverse market, Walt Disney has divided itself into four main business segments: Studio Entertainment, Parks and Resorts, Consumer Products, and Media Networks. The purpose of these different segments is to integrate, and effectively operate in performance to maximize exposure and growth (Disney Online, 2006). This paper will analyze Disney’s marketing strategies directed at promoting its theme parks and resorts, as well as the firm’s strengths, weaknesses, opportunities and threats.
Walt Disney pioneered the world of entertainment into what we know today. In 1940, the Burbank Studio was constructed in California with a staff of more than 1,000 artists, animators, story men, and technicians (“Walt, Biography” n.d.). Due to World War II, 94% of the Disney work was associated with special government work. This included the production of training and propaganda films for the armed services, as well as health films that are still shown throughout the world by the U.S. State Department of Health (“Walt, Biography” n.d). Walt Disney’s dream came to life in 1955 when the first Disneyland amusement park was built in California, priced around $17 million (“Walt, Biography” n.d). Through all of this, Walt’s original purpose was to stimulate the idea of education in children through entertainment in his movies, shows, and theme parks. The company’s mission statement states Walt’s aspiration to “nurture the imaginations of children around the world a well as to celebrate American values” (“The Walt Disney Company,”1996). Walt Disney and company has successfully upheld this mission in the business for over 80 years now.
It was Walt’s objective to provide a service in which every person would desire now, as well as in the future. More than this, Walt Disney inspired to reach and touch as many people as possible, providing an unsurpassed experience in the world of entertainment. The firm’s stated objective is to be one of the world’s leading producers and providers of entertainment and information (“Disney Online,”2006). Walt Disney Corporation focuses on using its assortment of brands to differentiate its content, services and consumer products. Disney online states that the company’s financial goals are to “maximize earnings and cash flow, and to allocate capital profitability toward growth initiatives that will drive long-term shareholder value” (2006). These goals of being the world’s leader in producing and providing entertainment are entirely realistic, considering the current financial position of Disney. The financial goals are also measurable in terms of revenue expected. Walt Disney Corporation is specifying goals by stating that they intend to differentiate content, services and consumer products, to run a superior business. The time period in which this firm plans to accomplish this objective is alluded to in its financial goals, stating that the firm aims to sustain long-term shareholder value.
The Walt Disney Corporation brand name has powerfully distinguished itself nationwide as one of the best in the entertainment business. Operating at a multinational level, Walt Disney has over 58,000 employees worldwide, accompanied by more than 189,000 shareholders. Since 1995, Walt Disney has nearly doubled its sales to over $33 billion dollars. In the same...