Inge-Martin S. Tverborgvik
MGMT
Professor Magner
21 October 2015
Team Case: Disney
5-B:

Because Disney has such an influence in television media, they are able to advertise all about their parks, studios, movies, and any other entertainment. The success of Disney in each of the 5 industries will continue to build on their strengths. The leverage that Disney has in branding is at an all-time high. This is where they are extremely successful. Costs have dimensioned mostly because it has started so long ago. They continue to generate returns in each element. Most of their costs came from the development of their characters. Again going back to their strategy about technology they are gaining in that department. Walt-Disney are behind in the status quo, but as long as they continue to break down the barriers and continue to catch up, they will most likely take over their competitors.

8:
Through thorough examination of the Disney Company’s performance, it is clear that they have some areas of operations that are doing increasingly good and some that have historically done bad. Its entertainment operations, including television and movie productions, are doing great along with it Disney World theme parks. However, its interactive media segment, which includes video games, is causing a slight drop in their profits because it is running with a loss.
Despite having seen a decrease of the loss in their Interactive Media department in recent fiscal quarters, Disney should consider scrapping these operations as they still run with a loss. Another argument for why Disney should discontinue its operations of their interactive media is because it scores the weakest in the 9-cell analysis of its product offerings. An added benefit to this would be that it frees up capital to invest in further development of the parts of their business operations that are doing increasingly well. Transitioning their focus more heavily to the television and movie entertainment business and to their theme park divisions could make them even more competitive against their rivals in the market. In example, Disney should expand its theme parks to more locations domestically to make them more accessible to people across the country, thusly decreasing competition. As is right now, Disney could lose customers to theme parks such as Six Flags because it is decreasing the need and incentive to make the long drive and travel as it can provide close to the same experience. By extension, Disney should capitalize on following its current route of expanding globally in emerging markets because there are a lot to gain from it, as shows in their reports.
Alternative to the option of discontinuing their interactive media department, although that is the most recommended, Disney could consider completely rethinking their operations in this department. They need to innovate and redesign the whole strategy and operations in the department in order to gain a better competitive stance against the other players in the field.
In conclusion, Disney should end its Interactive Media portion of operations and capitalize on their operations that have proven to be beneficial in. However, being that their most recent fiscal quarter was their record strongest, Disney should continue on the strategy that they have been following, acquiring businesses that are adjacent or direct rivals in order to create a broader and more complete spectrum of entertainment to its audience, using Disney’s expertise in animation and adding those other companies’ unique abilities to their entertainment outputs, such as Pixar and Marvel. Utilizing these suggestions, Disney would likely experience continued growth similar to the one they have seen in recent fiscal years.

5b)What value chain match-ups do you see? What opportunities for skills transfer, cost sharing, or brand sharing do you see? – 3 points
Brand sharing is more take than give. For your brand to differentiate itself from its niche, consumers must believe that the brand delivers something more valuable than the money they paid for it.
Cost sharing is a process wherein two or more organizations work together to secure savings in one or more areas of business operations.