Julie Suh
BMGT 495
2/11/15
The Walt Disney Co: The Entertainment King
1. Disney’s most important strategic resource is the giant network they have created to become one of the biggest companies in the world. All of these resources help Disney to lower costs, generate greater revenue, and are hard to recreate by other companies, which gives Disney a competitive advantage over their competitors. These resources include:
Numerous acquisitions: ABC, Miramax Studios, Starwave, Touchstone, National Hockey League. These acquisitions made Disney the largest in the entertainment industry.
Licensing agreements: Licensed products not only bring in extra revenue, but also spreads awareness their new product/service.
In-house creative forces: Disney has their own production studio, programing distribution channel, film division, etc. Not only do these lower costs, but it also gives Disney more control over what is being produced. Disney employees work incredibly hard to come up with new and innovative ideas. Their classic movies, TV shows, animated characters, Broadway shows, etc., would not be possible without these people.
Catering to all ages: Disney does not focus on just children. Instead, they are able to create entertainment that even adults can enjoy. For example, Disney’s Hyperion Books mainly targeted teens and adults while Disney Press created books for children.
Disney’s flat, nonhierarchical organization: Disney emphasizes “teamwork, communication, and cooperation.” This is a key factor of Disney’s strategic resources because it is important to have a team that works together to avoid conflicts and delays. This also created “fiercely committed” workers, which in turn results in fewer turnovers.
2. Disney’s strategic resources are crucial for their continued success in the future. Over the years, Disney has built up an incredible reputation for themselves that is extremely hard to beat. If they want to continue to be the leader in the
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