Walt Disney Research Paper
Disney’s first and most important resource is its creativity-driven culture. The enterprise was born out of a character Walt Disney created. As Eisner described it, managing creativity is Disney’s most distinctive corporate skill and a driving force behind most its activities. This is evidenced by emphasis on creation and significance/independence that has been given to “Imagineers” to come up with new ideas free from external pressures and constraints. It is noteworthy to recognize that spending was readily approved if necessary to achieve creativity.
In addition to creativity, the company’s thorough knowledge and understanding of the family entertainment industry coming from its successful track record and history is a critical resource. Disney has been able to build a strong brand of wholesome and family-friendly image, which is closely aligned with Walt Disney’s original philosophy of creating a universal timeless family entertainment. While the Disney brand is widely recognized as wholesome, it is associated with family, rather than “kids only.” Understanding how to meet the needs of adults and children alike and creating an experience that families could enjoy together sets Disney apart from competitors and serves as a concrete base …show more content…
for business expansion into related industries.
Most of businesses Disney entered early in its corporate life are well-aligned with Disney’s critical resources.
Emphasis on creativity encouraged vertical and horizontal expansion in content production, and itself benefited from the growth as a result as well. For example, moving from full-length animated film to live action movie production (and entering cable TV business later on) made sense because the company was able to leverage on numerous ideas generated within the company and monetize more of those ideas. Entering distribution business (Buena Vista Distribution) also made sense because Disney could benefit from the company’s own pool of talent and invest back into the talent pool instead of paying fee to a third
party.
Focus on universal timeless family entertainment is linked to the company’s expansion into forms of entertainment adults can enjoy as well as children. For example, technically advanced attraction and elaborate setting of the Disney theme parks appealed to adults as well as children. Adding resorts was another step that helped Disney to market a “family vacation experience”. Broadway shows leveraged on this focus on “adults who are only kids grown up.” It was able to capitalize on Disney’s well-known characters and storylines, experience in entertainment industry and create an experience adults can enjoy as much as children do.
Disney was able to fully utilize its family friendly image, popular characters and expertise in the entertainment experience in Disney retail stores and consumer products. It took a unique approach of creating a Disney experience at the retail stores through the store setup and the merchandises (including the “Duckwear”), and was very successful.
However, some businesses Disney entered later did not necessarily fit the Disney mold. The merger with ABC was often compared to a marriage between King Kong and Godzilla. Many of ABC’s network had niche target group (for example, ESPN for men) and some programming did not resonate well with Disney’s traditional and family-focused image, as demonstrated in the publicized controversy over the ABC show Ellen. A string of internet business Disney had entered such as online subscription service, search engine and portal were disappointing as there were no connection between Disney’s existing expertise.
To sustain its unique culture, there was a three-day training program at Disney’s corporate university. As part of the program, all new employees spent a day dressed as characters at theme parks and developed a Disney pride. Disney Dimensions was an extension of this training program where senior executives from each business met in corporate headquarters and learned about the company. It was a great way to reinforce the Disney culture and also a foundation for cross-selling/synergistic projects between divisions. The “gong show” was a way to bring together employees from different divisions together in one place on a weekly basis and brain storm new ideas. At least in the early years, spending was readily approved if necessary to achieve creativity, and such budgeting/approval system bolstered creativity even more.
Standardizing all Disney theme parks was also a way to maintain a uniform culture globally and it also came with a cost synergy benefit. Also, Disney reduced the number of its licensed products by half so that it can manage the brand image more effectively and focus on well-established core characters.
In addition to creativity, the company’s thorough knowledge and understanding of the family entertainment industry coming from its successful track record and history is a critical resource. Disney has been able to build a strong brand of wholesome and family-friendly image, which is closely aligned with Walt Disney’s original philosophy of creating a universal timeless family entertainment. While the Disney brand is widely recognized as wholesome, it is associated with family, rather than “kids only.” Understanding how to meet the needs of adults and children alike and creating an experience that families could enjoy together sets Disney apart from competitors and serves as a concrete base …show more content…
for business expansion into related industries.
Most of businesses Disney entered early in its corporate life are well-aligned with Disney’s critical resources.
Emphasis on creativity encouraged vertical and horizontal expansion in content production, and itself benefited from the growth as a result as well. For example, moving from full-length animated film to live action movie production (and entering cable TV business later on) made sense because the company was able to leverage on numerous ideas generated within the company and monetize more of those ideas. Entering distribution business (Buena Vista Distribution) also made sense because Disney could benefit from the company’s own pool of talent and invest back into the talent pool instead of paying fee to a third
party.
Focus on universal timeless family entertainment is linked to the company’s expansion into forms of entertainment adults can enjoy as well as children. For example, technically advanced attraction and elaborate setting of the Disney theme parks appealed to adults as well as children. Adding resorts was another step that helped Disney to market a “family vacation experience”. Broadway shows leveraged on this focus on “adults who are only kids grown up.” It was able to capitalize on Disney’s well-known characters and storylines, experience in entertainment industry and create an experience adults can enjoy as much as children do.
Disney was able to fully utilize its family friendly image, popular characters and expertise in the entertainment experience in Disney retail stores and consumer products. It took a unique approach of creating a Disney experience at the retail stores through the store setup and the merchandises (including the “Duckwear”), and was very successful.
However, some businesses Disney entered later did not necessarily fit the Disney mold. The merger with ABC was often compared to a marriage between King Kong and Godzilla. Many of ABC’s network had niche target group (for example, ESPN for men) and some programming did not resonate well with Disney’s traditional and family-focused image, as demonstrated in the publicized controversy over the ABC show Ellen. A string of internet business Disney had entered such as online subscription service, search engine and portal were disappointing as there were no connection between Disney’s existing expertise.
To sustain its unique culture, there was a three-day training program at Disney’s corporate university. As part of the program, all new employees spent a day dressed as characters at theme parks and developed a Disney pride. Disney Dimensions was an extension of this training program where senior executives from each business met in corporate headquarters and learned about the company. It was a great way to reinforce the Disney culture and also a foundation for cross-selling/synergistic projects between divisions. The “gong show” was a way to bring together employees from different divisions together in one place on a weekly basis and brain storm new ideas. At least in the early years, spending was readily approved if necessary to achieve creativity, and such budgeting/approval system bolstered creativity even more.
Standardizing all Disney theme parks was also a way to maintain a uniform culture globally and it also came with a cost synergy benefit. Also, Disney reduced the number of its licensed products by half so that it can manage the brand image more effectively and focus on well-established core characters.