Walt-Disney strategic planning

When you first think about Disney as a company, you will probably think about theme parks and animated movies. Disney goes far beyond with many other fields of entertainment such as TV channels to media networks.

From pioneering films such as Fantasia and Pinocchio to more recent features such as Monsters, Finding Nemo and Cars, Disney started with movies and later on with theme parks. What people have at their theme parks is much more than the typical entertainment: they have real experiences!

Throughout the late 1980s and the 1990s, Disney made major acquisitions, which almost doubled their size. They company now is divided in 4 major divisions:

1. Studio entertainment: many production companies, distribution companies (Touchtone, Miramax, Buena Vista…) and several music labels like Walt Disney Records. They recently bought Lucasfilm (read post)

2. Media Networks: TV channels, like ABC, Disney Channel, ESPN; Radio stations, Internet sites, etc.

3. Parks and Resorts: Theme parks in 3 different continents.

4. Consumer products: Merchandise Division, Retail Group (Disney stores)

Disney clearly has a diversification strategy, because the corporation grows by acquiring businesses outside the company’s “current” products and markets (they started making movies and ended managing retail stores).

Disney does a great job, and their brand is one of the most valuable brands all over the world.
Do you think diversification strategy is the only one to success? Use the comment box right below!

Originally published at www.marketingandeconomics.com on February 4, 2010.