The Walt Disney Company: It’s Diversity Strategy Harvard Case Solution & Analysis

THE WALT DISNEY

The Walt Disney Company, one of the most successful producers of entertainment and offers multiple product lines that fit into each other perfectly. Walt Disney Company creates entertainment at theme parks, resorts, and interactive media. The basic goal of the company is to satisfy the customers and to gain a competitive advantage over competitors. The company wisely chooses its resources and capabilities and knows how to use them by taking into consideration the ever competitive environment.

Moreover, Walt Disney adopted different strategies to diversify its activities and always tried to manage innovation and creativity, in order to gain the competitive edge. Furthermore, the strength of the company lies in its strong portfolio, resources, capabilities, and an effective organization. The success of the company involves new idea, creativity and one of them to open a park and a different kind of park. The corporate strategies of the company include three dimensions such as vertical integration, horizontal integration and geographical integration.

However, the product expansion in different countries requires high capital and resources, especially in building the theme park in different countries. Therefore, the company requires limiting its diversification in order to save its brand image and retain customer satisfaction. Moreover, too much diversification and product expansion leads the company to face multiple challenges and problems in the future such as synergy, too much outsourcing and brand image.

The synergy affected the scope of the company’s business geographically, vertically and horizontally. Moreover, it increased the revenue through promotions, value-added products and services and reduced the number of licensed brands to half. Furthermore, the idea of the theme of parks in Europe and other countries decreased the value of the Disney theme parks and the value of Disney premium prices. This is because many people from different countries do not prefer to pay premium prices and the concept of theme parks is different in countries because of difference in culture, tradition and language.

Furthermore, the competitive advantage will be short lived and diversification can be failed if the competitors intimate the company’s moves quickly and in low prices. Apart from that, the customers are attracted towards the low costs products and services. Therefore, it is highly recommended to Walt Disney to boost and increase the customers’ services in the existing theme parks. This strategy will help the company to increase competitive advantage without increasing the expenses and operational costs.The Walt Disney Company It s Diversity Strategy Case Solutions

Moreover, the company should develop the interest of the people into the theme parks by hiring Disney Channel actors into musician with their multitalented abilities and capabilities. Furthermore, it should arrange different shows and performances of the channel actors, in order to attract the people to visits the parks. Apart from that, the company should drive the goal of the Disney into the music industry as a main player. Therefore, the company should expand theme parks in different countries in order to maintain the brand value and increase the profitability and revenue of the company in the long run...............

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