Case Disney

Case # 4 Analysis
1. Background:

Walt Disney Co. founded by Walter Elias Disney and his brother Roy Disney in 1923, is one of the world’s biggest transnational companies whose main objective is entertainment and mass media. At the beginning, the cartoons created by Walt Disney were not aimed at the young audience and the characters portrayed rebelliousness and people’s non-conventional features or at least different to the time’s standards.

After the World War II, the animation process focused on meeting the young audience’s needs, with stories of magical worlds, and the adult population, with the technological innovation and animation advances. In 1955, the company launched the first theme park called Disneyland. With headquarters in Paris and Hong Kong, the company focused on the creation of films and theme parks, by aiming always at the young audience with magical stories and characters full of innocence and fantasy.

Throughout the time, the company has faced great challenges, such as the demand’s decrease of cartoons’ production or the economic problems that reduce the families’ monetary ability to visit the theme parks. The implementation of those out of the United States has been a big challenge for the company, too.
In the 2005, Bob Iger was named as CEO. The company has started a wide diversification of other sorts of audience by doing market segmentation and focusing on meeting the needs of each one of the segments with different kinds of products and services that permit the enjoyment of the Disney Magical World’s experience in all the life fields.

Fuente:
http://mundomagicowdw.com/noticias/historia-de-disney/
http://es.wikipedia.org/wiki/Walt_Disney








2. Updating:

For the Walt Disney Company, the 2012 Fiscal Year, which closed in September, has been one of the most successful with profits over the 5, 7 million dollars (net income) and its capitalization of market was about 83, 3 billion dollars. All the profits have been earned thanks to the franchises such as Toy Story, Mickey Mouse and Star Wars that was recently purchased for 4.000 million dollars. Clearly, the new technologies and animation’s development as well as the competition of other innovative big companies have been a big challenge that has pushed the company to keeping its policy of excellence and continuous improvement.

During the 2009 Fiscal Year, the company’s net income decreased to 25% with profits of 3.3 million dollars and at the early 2010 the situation did not improve, which lead to think that the strategy of Iger’s market diversification was not working and would lead the company to its closure or definitive standstill. Nevertheless and thanks to the easy adaptability, the company has developed different strategies to face each one of these situations such as the economic recession, which in the case of the theme parks, has developed special plans with offers and bargains to the general audience. Other of the successes of the company, talking about diversification, has been the acquisition and administration of ESPN and ABC channels which are some of the most profitable and stable.

The theme parks’ chains and hotels around the United States and the other countries produced almost a third of its income in the last Fiscal Year and has permitted the company to continue the market diversification with the purchase of other entertainment companies such as Pixar that soon would produce considerable profits. With the purchase of the Star Wars saga’s rights, Disney will launch a range of products that covers from movies to theme cruises, aimed only at the movies’ fans.

As a consequence, the company’s dividend per share has depicted a growth to 50% in the past years, which has produced confidence in the investors and has confirmed that the diversification strategy and expansion of the company’s marketing field has been a success so far and will produce even more money with the upcoming franchises.
Fuente:
http://www.igdigital.com/2012/11/disney-una-empresa-que-vale-la-pena-seguir/
http://www.cnnexpansion.com/expansion/2010/05/03/una-nueva-era
3. People involved:
Walt Disney and his brother Roy managed the company till their deaths. One until 1966 and the other until 1971. Since then, there have been several presidents that have led the company, in one way or another, to becoming one of the biggest entertainment multinationals worldwide.
First of all, the production of short and feature films generated higher profits and made of Disney one of the most remarkable, famous and recognized brands around the world. Then, with the opening of the different theme parks not