The tenth case study for CMA (Final) Group 3 students-

Paper 15 - Business Strategy and Strategic Cost Management

CASE STUDY ON STRATEGIC CHOICE

From its origin as an animated film producer, Walt Disney Company has moved into licensing characters for merchandised goods and developed theme parks and vacation and resort properties. What should be the best strategy for growth of Walt Disney Company?

Answer:

The Walt Disney Company, is an American diversified multinational mass media corporation headquartered in Walt Disney Studios, Burbank, California, United States. It is the largest media conglomerate in the world in terms of revenue. Walt Disney Productions established itself as a leader in the American animation industry before diversifying into live-action film production, television, and travel. The Walt Disney Company expanded its existing operations and also started divisions focused upon theatre, radio, music, publishing, and online media. In addition, it has created new divisions of the company in order to market more mature content than it typically associates with its flagship family-oriented brands.

The company is best known for the products of its film studio, the Walt Disney Studios, and today one of the largest and best-known studios in Hollywood.

The company finds profitable growth by targeting emerging businesses new to Disney’s existing portfolio, managing cross-divisional issues and opportunities, and evaluating new technology and business models. The group also resorted to mergers, acquisitions, and divestiture transactions as well.

                                                                                             Source: Suggested Answers - December 2012 by ICAI