Why has Disney been successful for so long (Describe the business model of Disney)
Disney´s Business Model
According the article of Walt Disney Company: A corporate strategy analysis (Robin School of business) Disney’s objective is to be “one of the world's leading producers and providers of entertainment and information, using its portfolio of brands to differentiate its content, services and consumer products. The company´s main financial goals are to maximize profit, cash flow and drive a long-term shareholder value. Disney creates and distributes entertainment through five main market segments:
1) Media Networks
This segment covers all of Disney´s operations, broadcast television networks, radio networks and digital operations. It embraced approximately 46% of revenues and 76% of income before taxes in 2011. This area uses a differentiation strategy, is heavily regulated by the Federal Communications Commission in the US, which dictates how many stations the firm may own and enforces the guidelines for the content on the stations. Is important to clear that Disney channels worldwide represent children´s content.
2) Parks and Resort
This segment is the second largest revenue producer for Disney. A majority of the increase in revenues was driven due to higher guest spending and revenue from the Disney Dream Cruise; these are the more capital intensive segment of Disney. All of the major operations have been created and developed with help of other entities, for example, Disney Paris is managed by Euro Disney S. C. A. a publicly traded company of which Disney owns approximately 40%.
3) Walt Disney Studios:
Considered to be the segment where all other Disney enterprises were originally built. This section consists of animated and lives- action films, music and theatrical plays. The Studios are in charge of creating, producing, promoting, acquiring and distributing projects within Disney Studios. In 2011, Disney studios generated...
References: David Collis, M. R. (January 5, 2009). the Walt Disney Company: The Enterteinment King . Harvard Business School.
Robin School of Business (2012). The Walt Disney Company: A corporate Strategy Analysis. http://robins.richmond.edu/documents/cases/WaltDisney.pdf
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