Disney Corporation: A Look into their Corporate Strategy and Structure
The Walt Disney Company is one of the world’s largest entertainment conglomerates, with a diverse range of businesses, including media networks, parks and resorts, studios, and consumer products. Disney’s corporate strategy focuses on creating and leveraging its strong brands and intellectual property to generate revenue across all its businesses.
Corporate Structure
Media Networks: Disney’s Media Networks segment is responsible for managing its cable television and digital media businesses. This includes networks such as ESPN, Freeform, and Disney Channel, as well as associated digital media businesses. For example ESPN is the leading sports network in the United States, with a focus on live sports events and news coverage. ESPN also offers a variety of digital media products, such as the ESPN app and ESPN+, a streaming service that offers live sports events and original programming.
Disney Channel, on the other hand, is a cable network that targets a younger audience with a mix of original programming and acquired content. The channel also offers associated digital media products, such as the DisneyNOW app, which allows viewers to access Disney Channel content on-demand.
Parks, Experiences, and Products
Disney’s Parks, Experiences, and Products segment includes its theme parks and resorts, as well as its consumer products business. This segment is focused on creating immersive experiences for guests and fans, as well as generating revenue through merchandise sales. A good example, Disney operates twelve theme parks and resorts around the world, including Disneyland and Walt Disney World. These parks offer a variety of attractions, entertainment, and dining experiences designed to appeal to a wide range of audiences. Disney also operates several cruise lines that offer immersive Disney-themed experiences for guests. In addition to its theme parks and resorts, Disney also has a strong consumer products business. This includes merchandise such as toys, clothing, and home décor, as well as other products such as books, music, and video games. Disney’s consumer products are sold through a variety of channels, including retail stores, online retailers, and its own Disney Store retail chain.
Studio Entertainment
Disney’s Studio Entertainment segment includes its film and television production studios, such as Walt Disney Pictures and Lucasfilm. This segment is focused on creating engaging and innovative content for audiences around the world. Walt Disney Pictures produces a variety of live-action and animated films, ranging from blockbuster franchises like Star Wars and Marvel to family-friendly films like Frozen and The Lion King. In addition to producing its own films, Walt Disney Pictures also distributes and markets films produced by other studios.
Lucasfilm, on the other hand, is responsible for producing the Star Wars franchise, including films, television shows, and other media. Lucasfilm also has a strong visual effects business, with its Industrial Light and Magic division providing visual effects for many of the world’s biggest films.
Direct-to-Consumer and International:
Disney’s Direct-to-Consumer and International segment includes its streaming services, such as Disney+, Hulu, and ESPN+, as well as its international operations. This segment is focused on delivering Disney’s content directly to consumers, as well as expanding the company’s reach into international markets. Disney+ is a good example of this segment. It is a streaming service that offers a variety of Disney content, including films, television shows, and original programming. The service has been a huge success, with over 116 million subscribers as of August 2021.
Hulu is another streaming service owned by Disney, which offers a variety of television shows and original programming. ESPN+ is a sports-focused streaming service that offers live sports events and original programming. In addition to its streaming services, Disney’s Direct-to-Consumer and International segment also focuses on expanding the company’s reach into international markets. This includes investments in local content production, partnerships with local distributors and broadcasters, and the acquisition of international media companies.
Corporate Strategy
Disney’s corporate strategy is focused on leveraging its strong brands and intellectual property to create new and engaging content across all its businesses. This includes:
- Content creation: Disney is known for creating high-quality and engaging content across all its businesses, from movies and TV shows to theme park attractions and consumer products. The company invests heavily in research and development to ensure that its content is fresh, innovative, and appeals to a wide range of audiences.
- Brand management: Disney is a master at managing its brands and intellectual property. The company has a deep understanding of its audience and leverages its brands to create a strong emotional connection with them. Disney also works to protect its intellectual property through various legal and licensing agreements.
- Innovation: Disney is constantly looking for new and innovative ways to engage its audience and create new revenue streams. This includes the development of new technologies, such as virtual and augmented reality, and the expansion into new markets, such as China.
- Diversification: Disney is diversified across multiple businesses and revenue streams, which helps to mitigate risks and create stability in its financial performance. The company is also expanding its presence in international markets to tap into new sources of revenue.
Conclusion
Disney’s corporate strategy and structure have allowed the company to become one of the world’s largest and most successful entertainment companies. By leveraging its strong brands and intellectual property across all its businesses, Disney has been able to create engaging content and new revenue streams while managing risks and maintaining stability in its financial performance. As Disney continues to expand its reach and presence globally, we can expect to see continued growth and success in the future.