strategic management presentation on walt disney also include blue ocean strategy, swot and tows analysis,ansofs matrix, porters five forces strategy,analysis of vision and mission statement of walt disney

2. FLOW OF PRESENTATION
• INTRODUCTION
• OVERVIEW
• VISION & MISSION
• SWOT & TOWS
• PORTER’S FIVE FORCES MODEL
• BCG MATRIX
• ANSOFF’S MATRIX
• PEST ANALYSIS
• BLUE OCEAN STRATEGY

3. “We don’t make movies to make money.
We make money to make movies”
~ Walt Disney

4. • Founded By Walt Disney
• Established in 1923
• Headquartered in California,USA
• Currently World’s Largest conglomerate in terms of revenue

5. Disney - contribution of segments to revenues
Media Networks 45%
Parks & Resorts 31%
Studio Entertainment 13%
Consumer Products 8%
Interactive 3%

6. ABSTRACT

7. OVERVIEW
• The Walt Disney Company represents an organization composed of 35.5
billion dollars in 2007.
• The five SBU’s are Disney Consumer Products, Studio Entertainment,
Parks and Resorts, and Media Networks Broadcasting , and these can be
further subdivided into 28 categories and are composed of different
brands

8. OVERVIEW
• The two fundamental commonalities that are found upon inspection of
the entirety of the Walt Disney Company’s holdings are entertainment
and information.
• Every business activity that Disney is engaged in is related in some
manner of providing its consumer base entertainment and/or information

9. VISION & MISSION
ANALYSIS

10. CURRENT VISION
ANALYSIS
“TO MAKE PEOPLE HAPPY”
Effective Elements Shortcomings
• Memorable
• Feasible
• Vague
• Generic

11. CURRENT MISSION
ANALYSIS
"THE MISSION OF THE WALT DISNEY COMPANY IS TO BE ONE OF THE WORLD'S
LEADING PRODUCERS AND PROVIDERS OF ENTERTAINMENT AND
INFORMATION. USING OUR PORTFOLIO OF BRANDS TO DIFFERENTIATE OUR
CONTENT, SERVICES AND CONSUMER PRODUCTS, WE SEEK TO DEVELOP THE
MOST CREATIVE, INNOVATIVE AND PROFITABLE ENTERTAINMENT
EXPERIENCES AND RELATED PRODUCTS IN THE WORLD."
Effective Element Shortcoming
• Product oriented statement.
• Focus on what products to sell and what
services to offer.
Lack of 5 essential components:
• Customers
• Technology
• Philosophy
• Concern for public image
• Employees

12. New Vision Statement
New Mission Statement
“As the world’s leader in entertainment and information we seek to create
an engaged and collaborative culture for our employees in order to turn our
customers‘ moments into a unique experience, by providing special services
and innovative products through movies, parks and the e-world. By taking
advantage of our diversified portfolio to differentiate our content in all
segments, we aim to develop the most profitable entertainment company
worldwide, which would yield increasing profits to our shareholders.”
“To Make Entertainment The Wheel Of Life”

13. SWOT ANALYSIS

14. SWOT ANALYSIS
Brand Reputation
•Highly Diversified Portfolio
•Strategic & Tactical Acquisitions
•Global Expansion & Alliances
•Economies of Scope
•Loyal Customers
•Strong Financial Position
•High Cost of Operations
•Concentration of Revenues In
North America
•The Constant Need Of
succesfull Development
material
•Benefits From IT Advances &
Mobile Gaming
•Build A More Eco-Friendly Image
• Further expansion in new
emerging economies
•Release of New Successful Stories
& Characters
•Financial Récession
•Increasing Piracy
•Strong Competition
•Continous Need For
Technological Update
•Change in Consumers
Preferences & Tastes
•Negative Publicity Due to
Unexpected Event
S W
TO

15. TOWS ANALYSIS

16. STRENGTHS:
1. Brand Reputation
2. Highly Diversified Portfolio
3. Strategic & Tactical Acquisitions
4. Global Expansion & Alliances
5. Economies of Scope
6. Top Management
7. Loyal Customers
8. Strong Financial Position
S2-O1: Develop mobile game
applications with Disney
characters
S1-O2: Collaborating with
WWF so as to promote
environmental issues
S6-O3: Build a multinational
management team
S8-O4: Consumer research on
their preferences nowadays
SO Strageties:
1. Benefits From IT Advances &
Mobile Gaming
2. Build A More Eco-Friendly Image
3. Further expansion in new
emerging economies (India,
Russia)
4. Release of New Successful
Stories & Characters
Opportunities:

17. STRENGTHS:
1. Brand Reputation
2. Highly Diversified Portfolio
3. Strategic & Tactical
Acquisitions
4. Global Expansion &
Alliances
5. Economies of Scope
6. Top Management
7. Loyal Customers
8. Strong Financial Position
1. Financial Recession
2. Increasing Piracy
3. Strong Competition
4. Continuous Need For
Technological Update
5. Change in Consumers
Preferences & Tastes
6. Negative Publicity Due to
Unexpected Event
Threats:
S7-T1: Offer discounts to all
members of Disney fun club
S3,S4-T3: Expansion in Brazil
market through alliances and
synergies
S8-T4: Invest on R&D for one
high tech department
S6-T5: Monthly consumer
research via online polls
ST Strategies:

18. 1.High Cost of Operations
2.Concentration of Revenues In North
America
3.Approaches Antitrust Law Limits
Weakness:
Opportunities:
1. Benefits From IT Advances & Mobile
Gaming
2. Build A More Eco-Friendly Image
3. Further expansion in new emerging
economies (India, Russia)
4. Release of New Successful Stories &
Characters
W1-O1: Digitalization of
our operations in order to
low costs & utilize
technology
W2-O3: Target India as
possible expansion through
consumer products
WO Strategies:

19. Weakness:
1.High Cost of Operations
2.Concentration of Revenues In NorthAmerica
3.Approaches Antitrust Law Limits
Threats:
1. Financial Recession
2. Increasing Piracy
3. Strong Competition
4. Continuous Need For Technological
Update
5. Change in Consumers Preferences &
Tastes
6. Negative Publicity Due to Unexpected
Event
W1-T1: Re-edit and release
in cinemas old classic
Disney films
W2-T3,T4: Take advantage
of operations that take
place in N. America by
investing in Technology and
R&D for that area
WT Strategies:

20. PORTER’S FIVE FORCES
MODEL

21. Rivalry Among
Firms (High)
• Competition from
entertainment producers,
media outlets and theme
parks.
Threat Of Substitutes (Low)
• More Brand Loyalty.
• High product differentiation
• Other products cannot give same
experience
Threats Of New
Entrants (Low)
• High investment to
enter new Market.
• Brand Name is strong
Bargaining Power of
Buyers (High)
• The product offerings
are desires not
necessities.
• Financially restricted
consumers may not
buy
Bargaining Power of
Suppliers (Medium)
• Equipment manufacturers, construction
companies, and vendors are highly capital
intensive and have more power.
• Food, toys, and clothing vendors do not
have much power.

22. BCG
MATRIX

23. HIGH LOW
HIGH
• MEDIA NETWORKS
LOW
• STUDIO
ENTERTAINMENT
• PARKS AND RESORTS
• CONSUMER PRODUCTS
• INTERACTIVE MEDIA
Relative Market ShareRelativeMarketGrowth

24. ANSOFF
MATRIX

25. Market penetration
 New Movies
 Animated TV shows.
 Disney Toys.
Product Development
 3D Movies
 3D Animated Movies
Market Development
 Disney Lands in countries
like India , Sri Lanka ,
Pakistan etc.
Diversification
 Chip Boards in India
Existing
New
Existing New
PRODUCTS
MARKETS

26. PEST
ANALYSIS

27. POLITICAL
The animation industry enjoys tax benefits.
Political differences are an obstacle to International Trade.
Tighter regulations regarding products safety.
ECONOMIC
Global financial crisis slows down growth.
Emerging markets such as India offer a cost advantage in terms of salaries
and the overall cost of production.
Economic growth, per capita income and stage of economic development
among different countries needs to be considered.

28. SOCIAL
Different local cultures, as well as stories and history of the host place.
Changes in customers preferences for entertainment.
Significant role of kid’s and family’s entertainment.
TECHNOLOGICAL
Technological advancements are having a profound effect on the
world’s media.
Changes in technology affect demand for entertainment products
as well as the cost of production.

29. Blue
Ocean
Strategy
BLUE OCEAN
STRATEGY

30. • Create uncontested market space.
• Make the competition irrelevant
• Create and capture new demand.
• Break the value-cost tradeoff.
• Align the whole system of a firm’s activities in
pursuit of differentiation and low cost.

31. The Four Organizational Hurdles to
Strategy Execution
Cognitive Hurdle
An Organization
wedded to status
quo
Political Hurdle
Opposition from
powerful vested
interests
Resource Hurdle
Limited Resources
Motivational
Hurdle
Unmotivated Staff
• Cognitive hurdle that blinds
employees from seeing that
radical change is necessary
• Resource hurdle that is endemic in
firms
• Motivational hurdle that
discourages and demoralizes staff
• Political hurdle of internal and
external resistance to change.

32. Break Through the Cognitive Hurdle
Ride the “Electric Sewer”
• “Seeing is believing” - inspire a fast change in mindset that is internally driven
of people’s own accord.
• Experiences that don’t involve touching, seeing, or feeling actual results, such
as being presented with an abstract sheet of numbers, are shown to be non-
impactful and easily forgotten.
• Numbers are disputable and uninspiring, but coming face-to-face with poor
performance is shocking and inescapable, but actionable.
Meet with Disgruntled Customers
• Get them to listen to their most disgruntled customers firsthand - there is no
substitute for meeting and listening to dissatisfied customers directly.

33. Jump the Resource Hurdle
• Multiplying Value of Resources
• Hot spots are activities that have low resource input but high potential
performance gains.
• Cold spots are activities that have high resource input but low performance impact
• Horse trading involves trading your unit’s excess resources in one area for another
unit’s excess resources to fill remaining resource gaps.
Redistribute Resources to Your Hot Spots
• Feed resources to your hot spots
Redirect Resources from Your Cold Spots
• Free up resources by searching out cold spots
Engage in Horse Trading
• Trade resources you don’t need for those of others that they do need.

34. Jump the Motivation Hurdle
Kingpins
• Kingpins are key influencers in the organization, who are natural leaders,
who are well respected and persuasive, or who have an ability to unlock or
block access to key resources.
• Concentrate your efforts on Kingpins
Fishbowl Management
• Shine a spotlight on Kingpins’ actions in a repeated and highly visible way –
through transparency, inclusion, and fair process.
Atomization
• Framing of the strategic challenge - breaking the challenge into bite-size
atoms that employees at different levels could relate to.
• Unless people believe that the strategic challenge is attainable, the change is
not likely to succeed.

35. Knock Over The Political Hurdle
Leveraging Angels
• Angels are those who have the most to gain from the strategic shift.
Silencing Devils
• Devils are those who have the most to lose from it.
Secure a Consigliere on Your Top Management Team
• A consigliere is a politically adept but highly respected insider who knows in advance
all the land mines, Including who will fight you (Devils) and who will support you
(Angels).
Identify your detractors (Devils) and supporters (Angels)
• Isolate your detractors by building a broader coalition with your angels before a
battle begins. Key to winning over your detractors or devils is knowing all their likely
angles of attack and building up counterarguments backed by irrefutable facts and
reason.