Disney Case Write up:

Disney from the start has had a competitive advantage to others in the film industry for the plain fact as Walt says, “Cartoons unlike actors can be perfectly controlled to avoid any negative imagery.” This statement is the key stone to how Disney has so successfully created value. Disney has pursued its corporate level strategy by maintaining the value of the brand, managing creativity, and encouraging synergy throughout the corporation.

Managing the Disney brand has become an increasingly difficult task since Walt’s death. Times have changed and it is becoming more difficult as Disney grows to stick to the “timeless family values” it was founded on as times become more controversial and sensitive social
A strong believer in the importance of family life, Disney fostering an experience the family can enjoy together. “You are dead if you only aim for kids. Adults are only kids grown up.” * Cartoon characters, unlike actors can be perfectly controlled to avoid any negative imagery. * What would Walt do? * Build Disney Brand while preserving the corporate values of quality, creativity, entrepreneurship, and teamwork. * History and culture of the company and the legacy of Walt Disney were inculcated in a 3 day training program at Disney’s corporate university. Required to spend a day dressed as a character at the theme park as a way to develop pride in the Disney tradition. * Most distinct corporate skill, Managing creativity. * Tension between creative and financial forces * All businesses were expected to have the potential for long run profitability. Nevertheless, spending was readily approved if necessary to achieve creativity. * 1986 Disney Sunday Movie on ABC * 27 of Disney’s next 33 films were profitable, 1986 Disney held 4% share of box office, by 1988 they had 19% making it the market leader nearly overnight. * 15-18 new films per year * Moderately budgeted films career slumps and TV actors, ensure less loss * Expanded animation to accelerate production invested in a computer