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Disney Case Analysis

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Submitted By gilgamesh320
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Identify the Problem (Feel free to disagree/add and subtract.)

Disney, while broadly diversified –are lately using a method of acquisition – a capital intensive approach. As well, they are making large capital investments in their existing infrastructure. –Do they have the numbers to support this aggressive (and seemingly unfocused and thereby risky) approach- both in the long term (identity/ brand focus) and short term (cash). Is this a sustainable and strategic path to growth, or does this rush to capitalize on rapidly changing trends lead to oversaturation without developing existing core “money makers”? Is the happiest place on earth recession proof? How do they sustain interest and growth to match ever-continuing investment?

Background (I focused more on “ generally what’s happened since the case in the text”, instead of reiterating everything the textbook—but I can change that).

This year marks Disney’s 60th anniversary- Disney operates television networks including ABC and ESPN, theme parks on three continents, a movie studio, and gaming and consumer products divisions.

Revenues at Disney’s parks Unit (their second largest division)- have climbed over the past few years since the written text case. Disney has invested billions to add Cars Land, expanded and added more current attractions to Disney World, built a new cruise ship etc.
For the six months that ended March 28, parks operating income rose 22 percent to $1.4 billion.
Disney also followed through with ideas of territorial expansion-Opening their first Retail Store in Mainland China.
They’ve also continued with their adaptation of technology as a method of growth. Specific examples being the introduction of MyMagic+ armbands (wearable technology for within the resorts that allows multiple services).
Disney is also encouraging digital purchasing of its movies by launching its

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