2. History of Disney  Disney started out in the studio entertainment in the animated cartoon industry. In 1923 Walter Elias Disney founded Disney Brothers Studio with his older brother Roy. They ran their company as a flat nonhierarchical organization, in which everyone including Walt used their first names, and no one had titles.

3. Disney Portfolio

4. Disney 4 Business Lines Studio Entertainment Theatrical Films Walt Disney Pictures Touchstone Pictures Hollywood Pictures Miramax Distribution Buena Vista Music Groups Hollywood Records Mammoth Records Lyric Records TV Production Program Development First Run Animation Live-Action Syndication Pay TV Services Media Networks Broadcasting ABC TV Network TV Stations ABC Radio Networks Radio Stations Cable Networks & International ESPN Disney Channel Toon Disney SoapNet Lifetime E Parks & Resorts Amusement Parks Disneyland Disneyworld Euro Disney Tokyo Disneyland Disney Cruise Line Consumer Products Merchandising licensing Disney Stores Disney Publishing Walt Disney Art Classics Disney Interactive

5. Innovation from an early age  1923 animated cartoon industry-black & white no sound  1928 called “Steam boat Willie” with Mickey Mouse  1931 1 st Color Cartoon  1937 1 st full length animated feature film  Set Learning Curve  Innovation  Branding

6. Today Studio Entertainment Industry Disney still leading innovation  Movies – full blown action/ special effects/ HD  Television- live/reality  Animation programs- computer animated  Musical recordings- studios  Live stage plays- broadway  Internet Groups

7. Studio Entertainment Industry Analysis Industry Competitors Rivalry Medium Potential Entrants Low Buyers High Substitutes High & Low Suppliers Low Five Forces

8. Degree of competitive rivalry  Competitive rivalry-Medium high # of competitors- low Entrants barriers-high Market size & growth- high Product differentiation & brand loyalty- med Cost structure of industry- high Exit barriers-med to low

9. Today Disney Top 3 Competitors

10. 2007 Percent of Revenues

11. 2011 Fortune 500 RankCompany 500 rank Revenues ($ millions) 1Walt Disney6640,893.0 2News Corp.9133,405.0 3Time Warner10328,974.0 4Viacom17714,963.0 5CBS18814,245.0 6CC Media Holdings3946,161.4 7Live Nation Entertainment 4505,384.0

12. Disney Studio Entertainment Firm Analysis  1980’s Entertainment Slump-Disney technologically adapted & innovation.  First Mover: 1988-Disney Invested $30mm in computer animated production system (CAPS)  Roger Rabbit

13. Firm Analysis-Disney Diversification  Disney takes on more: Diverse reduces risk in other industries  1980’s-Touchstone  1933-Miramax

14. Distribution  1978-Home video industry Buena Vista Home Video and International Buena Vista

15. Disney’s Competitive Advantage Produce it, Distribute it, Sell it Buena Vista Home distribution Vertically film integrated Horizontal Integrated Growth in the entertainment industry Marimax, Touchstone, Disney Studios, Music, TV, Films, Plays Diversification Copy Rights on TV, Film, Music, Plays Intellectual Property Rights Changing with Technology Taking on more risk Adapting to consumer market preference Innovation Investing in risky projects Set learning curve First Mover From children to adults Adults trust Disney. Adults take their kids, and their kids take their kids etc.. Brand Loyalty Movies promotes new park rides, promotes new products, promotes new tv shows etc.. Cross Promotion