1. Pareto (20/80)principle in business on example of Disney corporation.
Roman Yakhin (MBA)
Disney is very diversified company; however, we have not to overestimate diversification for
Disney’s bottom line. The actuality of Pareto (20/80) principle is very visible based on 2 graphs
Media Networks
79%
Parks andResorts
12%
StudioEntertainment
5%
ConsumerProducts
4%
Disney's Revenue by segments
Media Networks Parks and Resorts Studio Entertainment Consumer Products
US & Canada
77%
Europe
12%
Asia Pacific
8%
Latin America &
other
3%
Disney's Revenue by Region
US & Canada Europe Asia Pacific Latin America & other
2. above. Disney has still based on this revenue almost exclusively American company their it
received almost 80% of its revenue and almost 80% of companies’ revenue came from its TV
networks. If hypothetic speaking Disney tomorrow will midrow from all the international
markets, shutdown all its parks, and all Disney’s toys will disappear from stores Disney will
preserved majority of its revenue while significantly simplifying its operations, and reducing cost
and risks of exposure to international markets. Diversification is important, but it has not to be
overestimated.
Try to identify the vital few customer segments in your business and focus your entire effort on
them instead of spreading too thin.
Koslosky, J. (1970, January 01). Walt Disney Co.'s Biggest Strength: Diversification.
Retrieved March 23, 2017, from https://www.fool.com/investing/general/2015/07/31/disneys-
biggest-strength-diversification.aspx
The Walt Disney Company - revenue by region 2016 |Statistic. Retrieved March 23, 2017,
from https://www.statista.com/statistics/193263/revenue-of-the-walt-disney-company-in-different-
regions/