BRAMANTO ADI NEGORO – STRATEGIC MANAGEMENTTHE WALT DISNEY COMPANY: ITS DIVERSIFICATION STRATEGY in 2012

In 2012 The Walt Disney Company led by Robert Iger. Since 2005 Robert Iger becoming Disney CEO. The Walt Disney Company was a broadly diversified media and entertainment compay with a business lineup includes theme parks and resorts, motion picture production and distribution cable television networks, the ABC broadcast television network, eight local television stations and a variety of other business that exploited the company’s intellectual property.

Walt Disney Company was centered its corporate strategy on: creating high-quality family cotent, exploiting technological innovations to make entertainment experiences more memorable, and international expansion. The division of Walt Disney under Bob Iger leadership consist of:

1. Media Networks: ABC television network, ESPN, Disney Channel.2. Parks and Resorts: Walt Disney World Resort in Orlando, Disneyland Resort in California,

Aulani Disney Resort and Spa in Hawaii, Disney Vacation Club and Disney Cruise Line. Walt Disney also owns 51% over Disneyland Paris, Disneyland Hong Kong 47% and 43% on the Shanghai Disney Resort. In addition, licenses Tokyo Disney Resort is also held by Walt Disney.

3. Studio Entertainment: The acquisition of Pixar and Marvell. The studio is divided into Studio Movie, Music Sudio, Distribution, and Buena Vista Theatrical Productions.

4. Consumer Products: Disney Store which sells children's books and magazines - children, stationery, toys and apparel. In 2011, Disney Store numbering as many as 208 stores in North America, 103 stores in Europe and 46 stores in Japan.

5. Interactive Media: Production on game devices, game consoles and smartphones platforms. Then the official website, Disney.com, launched.

Disney’s acquisition strategy is aimed to enhance the resources and capabilities of its core animation business with the addition of new animation skills and characters such as acquisition of Marvel and Pixar. This strategy also aimed to reach consumers in new places or in new ways. Differentiation is a key for Walt Disney:

a. Prestige and brand imageb. Brand Loyaltyc. Company culture

Corporate Level Strategy: Diversification

Disney has success in diversification strategy and should continue this acquisition process in both current and new markets. Diversification strategies owned Walt Disney Company including related diversification as various businesses owned company deals only in some respects / dimensions alone, or connected in a very different dimension.

Related Diversification through Vertical Integration

a) Animation studiosb) Television (Disney Channel)c) Consumer Productsd) Unrelated Diversification (Parenting)e) Television (ESPN)f) Pixarg) Social Gaming

Cross Business Strategic Fit

BRAMANTO ADI NEGORO – STRATEGIC MANAGEMENTTHE WALT DISNEY COMPANY: ITS DIVERSIFICATION STRATEGY in 2012

Supply Chain

Activities

Technology Operations Sales and Marketing

Distribution Services

Media NetworksParks and ResortsStudio EntertainmentConsumer ProductsInteractive Media

Based on the core business fit strategy, in the supply chain activity there of division which are media networks, studio entertainment and interactive media were match in terms of suppliers of software, information technology and internet services as well as sharing activities in terms of technology. Here, the three division Walt Disney which are media networks, studio entertainment and interactive media uses the same technology for producing films and also display it to the virtual world. While in operational terms, all of divisions of Walt Disney have the opportunity to share activities and develop competitive advantage. Resources such as human capital can be in sharing, for example in terms on idea to create short cartoons, the company could borrow animators from studio entertainment division.

Sales and marketing chain have linkages between all of division. To be considered for sharing activities is due to the use of the website of the interactive media division will help sales as well as the promotion of the four other divisions. Distribution channels of media networks, studio entertainment and interactive media are usually the same, namely through a television screen or also from the store- retail stores owned by Walt Disney. While the services provided are generally the same as Walt Disney are generally moving in the entertainment field, the services to be offered to consumers is how to make consumers be entertained with products sold by the company.

Recommendation

Recommendation for Disney is to exploit new opportunities in the current target markets, by sharpening the management skills and continuance innovation. Moreover, leveraging their brands by further maintaining their communities. In addition, Disney can also take more advantage of their high brand awareness in international markets by expanding further into new global markets, by various methods such as building new theme parks in more countries, creating strategic alliances with international partners and joint ventures with local industry in each countries.

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The Opportunities to combine purchases from suppliers.

The opportunities in a variety of technologies, transfer of technical skills, and combine R & D.

Collaboration in creating new competitive capabilities.Opportunities in combining sales and marketing, use the same distribution channels and also the provision of the same service.