The Walt Disney Company: The Entertainment King
I. Why has Disney been successful for so long?
Disney’s long-run success is mainly due to creating value through diversification. Their corporate strategies (primarily under CEO Eisner) include three dimensions: horizontal and geographic expansion as well as vertical integration. Disney is a prime example of how to achieve long-run success through the choices of business, the choice of how many activities to undertake, the choice of how many businesses to be in, the choice of how to manage a portfolio of businesses and the choice of how to create synergies between those businesses (3, p.191-221). All these choices and decisions are …show more content…
Moreover, Disney diversified its business further when it opened Disney stores in 1987. Thus, it got a foot in the retail business and was able to capture huge profits. To put it differently, through expanding into new businesses, regions and audiences, especially through the retail business, Disney pioneered the “retail-as-entertainment” concept and created a completely new way of generating profits. Disney was able to generate sales per square foot twice as much as