Disney Case Competitive Strategy Analysis

Disney Case Competitive Strategy Analysis

Between 1923 and 2000, Disney struggled to make it in the industry with myriads of challenges and opportunities. In 1927, Oswald was a significant achievement for Disney, but the distributor blocked out Disney from the franchise through copyright. Also, the distributor hired most of Disney’s staff. However, Disney was inspired to diversify and develop its cartoon characters resulting in the development of Mickey Mouse and afterward the introduction of sound accompaniment in 1928, which gave Disney a significant breakthrough in the film industry. In 1937, Disney made its first full-length movie, Snow White and the Seven Dwarfs. I believe this inspired the development of many other successful movies such as song of the south in 1946, Treasure Island in 1950, among others.

During 1980-1983, the company experienced the most considerable risk of takeover, resulting from a persisting reduction in overall returns. Mainly, the threat can be attributed to the enormous investments in outdoor entertainment parks, which significantly restrained innovations in the film production sector. Necessarily, when Eisner took over the mantle, he embarked on an endeavor of hiring top skills to oversee the revitalization of the film business, maximization of park profits, coordination of the company’s diverse operations, and optimization of stakeholder’s equity. Interestingly, the move was guided by an ambitious revenue development target of over 20%. Although it took more than 15 years for Eisner’s enthusiasm to reinstate the position of Disney, it worked at the end. During his leadership, the company experienced a remarkable turnaround where its revenue escalated to $ 25 billion in 2000, compared to the initial $1.65 billion, and net earnings rose to $1.2 billion from $0.1billion..

In 1995, Disney acquired ABC, which helped Disney to gain worldwide distribution outlets and become the world’s largest entrainment industry. However, I believe the acquisition was untimely. Apart from making Disney vulnerable to threats associated with significant business size, the company did not consider expert opinion. Consequently, the acquisition resulted in cultural clashes among the staff and the executives, which, in my opinion, is the cause of the heightened uncoordinated management, hence risking the operations of the company.  Notably, Disney experienced a significant fall in its finances in 1998, owing to the enormous cost incurred ($19billion) in acquiring ABC.

Disney’s core competence entailed managing creativity by providing critical training to the employees to enhance their talent, commitment, productivity, and quality of output. Primarily, through the program to teach and train its staff, the company saved on costs of hiring experienced professionals. Besides, the company believed in teamwork, which significantly enhanced performance. Disney applied the concept of managing creativity and inclusivity throughout its products and markets.

While the company was growing, it depended on other support businesses, such as in distribution, to reach out to its audience.  However, as the company grew, it invested in diversified enterprises and clients. For instance, during the First World War, Disney provided the government with training and educational media hence helping it to earn a sustainable return amidst the war period. Additionally, the company created the Buena Vista distribution outlet, which enabled it to save on the costs of distribution and shield against distribution hurdles.

Other diversifications include investing in the music industry, licensing its name to other companies, and outdoor entertainment parks comprising Disneyland parks in the USA, Europe, and Asia. Also, the firm widened its line of production from short animation releases to full-length movies. Besides, it also diversified its functions and returns through live TV shows.

Disney’s founding philosophy revolved around providing a comprehensive entertainment package for the entire family. To do so, the company invested in corporate marketing lead by 20 divisional promotional marketing executives in charge of designing appropriate direct and cataloging marketing strategies. Also, the company spent in Disney Press for publishing children’s books, and Hyperion Books to capture adult audiences.

In conclusion, despite the many challenges, Disney was devoted to salvaging its brand and position in the global market. Notably, the company embarked on cost-cutting approaches and measures to seal all loopholes with extreme expenses. Also, the firm invested in team building activities to tighten the bond among global employees, encourage more cooperation, innovations, and productivity. I believe the firm, learned from past setbacks to establish a definite competitive advantage grounded on enhancing creativity, teamwork, inclusive quality entertainment packages, coordinated diversifications, and corporate marketing.