Michael Eisner Essay

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Case study The Walt Disney Company: The Entertainment King

1.Briefly describe the type(s) of diversification strategies that Walt Disney pursues/has pursued over the years.
The Walt Disney company can be seen as a highly diversified company. Over the years, it has pursued a wide range of diversification strategies that we can enhance:•Horizontal integration: obviously, Walt Disney has invaded several markets, diversifying its offer to many fields. In 2000, we can find five big main fields of action where Walt Disney operates: Media Network, studio entertainment, theme parks and resort, consumer products and internet and direct marketing. Moreover, each of these categories is itself divided in other categories characterized by the …show more content…
Katzanberg was a major actor of this change, for he had a real talent in finding good script and attract good actors and actress and partners.
New attractions made the theme parks even more successful, while they had remained profitable even after the Disney brothers’ death. A meeting of all divisions was frequently organized to generate new ideas. Euro Disney was created. For the other parks, attractions were added, and expansion of the hostels emphasized in order to encourage longer says and to attract major conferences.
Diversification was pursued over these years: the consumer products division entered books, magazines, and record publishing. The Walt Disney culture widened to a lot of products and markets.
The “sell through” approach allowed Walt Disney to market videos at low prices to purchase by consumer.
Acquiring a National Hockey League expansion team added also value to Disney businesses. Actually, the team was located near to Disneyland to Anaheim, was attracting and made Disney good advertising, expanding again its culture.
Making theater shows of the motion pictures, like for the theater production of Beauty and the Beast, can also be seen as a way to increase the value of the motion picture.
Finally, between 1984 and 1994, Walt Disney kept diversifying, but in more efficient ways, trying to add value to many of its businesses. Actually, many new activities added values to the
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