Disney Is An International Company, With Significant Essay

Length: 4 pages Sources: 2 Subject: Business Type: Essay Paper: #1685308 Related Topics: Theme Parks, Stakeholders, Companies, Income Statement
Excerpt from Essay :

Disney is an international company, with significant operations overseas. The company's media properties have a global scope, and it operates theme parks in a number of different foreign countries, including Japan, France and soon in China. The company also sells its consumer products and licensed merchandise around the world (Walt Disney Company, 2012). For the most part, Disney sees opportunity in globalization as it has the opportunity to expand its brands around the world.

The organizational structure of Disney highlights the company's approach to globalization. Disney views its brands as having universal appeal and has sought to market them using consistent strategies worldwide. That company's organizational structure therefore emphasizes product lines. Disney seeks to be a differentiated media and entertainment company with a global focus, rather than one that makes significant adjustments to its offerings when it moves into foreign markets.

As a media company, Disney is highly affected by changes in technology. Disney has used this technological change to enhance its digital media empire, and to spread its television networks like ESPN to create global media brands. Disney has embraced digital media platforms and has sought to evolve this particular business. At one point, it laid off a few hundred people in digital media in order to restructure the division and pursue different opportunities (Castillo, 2011).

The industrial organization model has been a key path to children, is particularly susceptible to saturation advertising and Disney uses that strategy to win children as customers, blocking other creative entities out of the market. This tactic therefore inherently limits competition. In addition a high level of consolidation within the media industry gives that industry economies of scale that are difficult to match. To rival Disney's ability to make movies and market products based around those movies is highly unusual. Disney also buys up competitors who have this ability, like Lucasfilm (Snider, 2012).

The resource-based view illustrates how the resources that the company has contribute to enhanced profitability. With Disney, the primary asset that the company has always leveraged is its characters. These are exceptionally popular in many parts of the world, and the result is that Disney has instant credibility with a lot of consumers. People will inherently be interested in these characters, so Disney in effect not only has its own brand but half a dozen other marketable brands in its primary characters.

In addition, Disney now leverages its financial resources to acquire assets like Lucasfilm, and then applies its marketing talents and its media outlets in order to add value to the characters and other intellectual property that it has. This combination of resources is difficult for competitors to replicate, and that allows Disney to enjoy superior…

Sources Used in Documents:

Works Cited:

MSN Moneycentral. (2012). Walt Disney Co. Retrieved November 30, 2012 from http://investing.money.msn.com/investments/stock-income-statement/?symbol=DIS

Walt Disney Co. 2011 Annual Report. Retrieved November 30, 2012 from http://cdn.media.ir.thewaltdisneycompany.com/2011/annual/WDC-10kwrap-2011.pdf

Rasmus, D. (2012). Defining your company's vision. Fast Company. Retrieved November 30, 2012 from http://www.fastcompany.com/1821021/defining-your-companys-vision

Castillo, M. (2011). Disney restructures their digital media department. Time Magazine. Retrieved November 30, 2012 from http://techland.time.com/2011/01/25/disney-interactive-studios-makes-major-cuts-in-staff/
The Walt Disney Company. (2012). Disney Overview. Walt Disney Company. Retrieved November 30, 2012 from http://thewaltdisneycompany.com/about-disney/company-overview
Shennu, B. (2012). The benefits of an industrial organization model strategy. eHow Money. Retrieved November 30, 2012 from http://www.ehow.com/list_7319667_benefits-industrial-organization-model-strategy.html
Snider, M. (2012). Disney buys Lucasfilm for $4 billion. USA Today. Retrieved November 30, 2012 from http://www.usatoday.com/story/money/business/2012/10/30/disney-star-wars-lucasfilm/1669739/

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