1. Why has Disney been successful for so long? 2. What did Michael Eisner do to rejuvenate Disney? Specifically, how did he increase net income in his first four years? 3. What can/should Disney do to grow? 4. Does Disney pursue vertical integration? Apply transaction cost economics to understand Disney's vertical expansion decisions. 5. What corporate strategy does Walt Disney employ? Identify and explain all types of diversification/integration within Disney's overall corporate strategy.

Check the explanatioonn foor the answer

Explanation:

1. Walt Disney was a smart man, he judiciously used his strengths and used others in the areas where he did not do well. Disney's success is credible to it's foundation and the strategy. He took chances and his prime focus was to elevate the customer's experience. He was not afraid of small failures and he knew that the market when he is stepping to undiscovered which itself comes with many challenges you see animated movies with voice integration or theme park for entire family was altogether a new concept back then. His vision was to exceed customer's expectations and pursue the passion and never money. He believed money will eventually come if you follow your passion and Disney still follows this mindset even after Walt Disney passed away. Disney took its chances and tried what the world said are bad ventures, to name a few integrated voice and animation, ventures in hospitality industry, multiple theme parks.

2. Eisner focused on shareholders, he maximized the shareholder wealth through annual revenue growth target and return on equities. The challenge for Eisner was that he had to build Disney's brand without compromising with the values and principles of Disney. One remarkable thing was he made it mandatory for every new joinee to go through a 3 day Culture training to undersatnd the values of Disney which also included dressing up like a character for a day. He discovered that Disney's managing creativity was its strength so he deliberately encouraged open debates, he believed best idea will come up when alidated within all employees. He understood that market was going through changes and in order to make Disney survive this he allowed Disney to produce its first R rated movie which turned out ot be a huge success. He was successful in capturing new market and audiences despite some fallouts and eventually he achieved 20% or more returns in coming years.

3. Despite achieving so much in its early years, somewhere I feel Disney has not diversified too far in recent years. For their existing brands like Marvel, StarWars, Pixar they have essentially focused more on their core competencies like movies, TV shows & theme parks. They license their products in most of the categories, many Disney titles are licensed to other companies the problem here is that though they are profitable it prevents Disney from maximizing their potential in product categories like toys etc. Another argument is that Disney has focused on Family friendly entertainment and therefore abandoning mature audiences. But recent startegic reorganization seems to be a step towards diversification. Disney's step towards video streaming industry and digital marketing industry as well as developing new consumer products such as merchandises, publishings, apps seems to be a significant step.