Presentation on theme: "The Walt Disney Company"— Presentation transcript:
1 The Walt Disney Company The Entertainment KingJames AmbroseCourtney HammBrandy O’NealJoseph Rendon
2 Disney Timeline 1923-Disney Brothers Cartoon Studio 1927-”Oswald the Lucky Rabbit”1928-loses contract forOswald the Lucky Rabbit1928-Steamboat WilliePremiers1923-In California, Walt and Roy Disney form the Disney Brothers Cartoon Studio, with a contract to produce "Alice Comedy" films about a live girl in an animated world. About 55 films in this series are produced over the next four years.1927-The Disney studio begins producing "Oswald the Lucky Rabbit" films, indirectly for Universal Pictures. 26 films are produced in just over a year.
4 Disney Timeline 1937-Snow White and the Seven Dwarfs 1940-IPO 1950-First Live-Action film & television debut1955-Disneyland1966-Death of Walt Disney1971-Walt Disney World Opens1937-Disney releases the first feature-length animated film, Snow White and the Seven Dwarfs.1940-Initial Public Stock Offering1950-Disney releases its first entirely live-action film, Treasure Island.Walt Disney makes his television debut in One Hour in Wonderland1955-Disneyland opens in Anaheim, California.1966-Walt Disney dies of lung cancer. His brother Roy becomes new chairman of the company.
5 Disney Timeline 1982-EPCOT Center opens 1983-Tokyo Disneyland opens 1984-Michael Eisner and Frank Wells1982-EPCOT Center opens at Walt Disney World, with pavilions representing eight countries.1983-Tokyo Disneyland opens, in Japan.1984-Disney's board of directors vote unanimously for Michael Eisner as chairman and chief executive officer, and Frank Wells as president and chief operating officer. Roy Edward Disney becomes head of the animation division. Touchstone Pictures releases its first film, splash.
6 Disney’s Success Creation of new characters Looking to the future Walt Disney’s VisionThe reason that Disney has been so successful for so long, is due to Disney’s ability to create new characters in cartoons and bring them to life. After creating Mickey Mouse, they made new characters such as Goofy and Donald Duck and won six academy awards. Disney was able to know that just creating cartoon shorts, and started to make full length films. Disney’s ability to create characters that people loved and its ability to look down the road has made Disney into the successful company it is today.Walt Disney’s vision has affects there strategies today because they are continuously looking for new and creative ideas that will improve Disney and they continue to take risk.
7 Disney Timeline 1987-First Disney Store 1988-Who Framed Roger Rabbit 1989-Disney-MGM Studios Theme Park1992-Euro Disney1987-First Disney Store opens1988-Touchstone Pictures releases the live-action and animated feature film Who Framed Roger Rabbit. The film cost over US$80 million to make and market. Donald Duck and Daffy Duck meet on-screen for the first time. The film receives four Academy Awards.1989-The Disney-MGM Studios Theme Park opens in Walt Disney World.1992-The Euro Disney Resort, featuring the Euro Disneyland park, opens in Marne-la-Vallée, France.
8 Disney Timeline 1992-Best Picture Nomination 1994-Frank Wells dies 1995-purchase of ABC TV1998-Animal Kingdom1998-First Cruise Ship1992-Beauty and the Beast first animated picture nominated for best picture nomination1994-Chief Operating Officer Frank Wells dies.1995-Disney buys the ABC TV network for US$19 billion.1998-Disney's Animal Kingdom opens in Walt Disney World.Disney launches its first cruise ship, the Disney Magic.
9 Issues Revitalization of TV and Movies Coordination among businesses Expanding into new businesses, regions, and audiencesMaximizing Theme Park ProfitabilityRevitalization of TV and Movies – Programs such as Golden Girls, Live with Regis and Kathy Lee, and later, Who Wants to Be a Millionaire helped to revitalize the Disney image on TV. In addition, Disney began to produce the Disney Sunday Movie on ABC. Disney began to produce more big budget movies, including the release of Touchstone’s first R-rated movie (Down and Out in Beverly Hills) during Eisner’s first week as CEO. $30 Million was invested in Computer Animated Production System (CAPS), which was used to create movies such as Who Framed Roger Rabbit.Coordination among businesses – Eisner encourage executives to resolve conflicts among themselves, although top management was still available to assist in problem solving. In 1987, a corporate marketing function was installed to stimulate and coordinate company-wide marketing activities. A marketing calendar was introduced to coordinate marketing across the company and was updated at weekly meetings with divisions across the company. All divisions were responsible for the generation of new ideas, and a monthly meeting of 20 divisional marketing a promotional executives was initiated to discuss inter-divisional issues.Expanding Into New Business-The launch of the first Disney store in 1987 pushed Disney into the world of retail. In addition, Disney produced consumer products such as books, magazines and record publishing. Disney Press published children's’ books, and Disney also owned Hyperion Books, the printers of Ross Perot’s biography. Euro Disney was opened in 1992, outside Paris, with Disney owning 49%. Disney received 10% of ticket sales and 5% of merchandise sales, regardless of whether or not Euro Disney turned a profit. Tokyo Disneyland was pointed to for the success of Disney-themed parks in other countries. Disney also gained popularity with older audiences through movies such as Pretty Woman and Miramax studio’s The Crying Game and Pulp Fiction.Maximizing Theme Park Profitability – Disney’s theme parks had remained popular after the deaths of Walt and Roy Disney. The main task for current managers was simply updating an expanding the already profitable attractions. Spent tens of millions of dollars on new attractions including Captain E.O. Only 15% of the 43 square miles owned by Disney was being used, so the company built a several-thousand room hotel, in addition to a $375 million convention center. Steps to generate more revenue included lifting restrictions on the allowed number of visitors, opening Disneyland on Mondays, raising of ticket prices, SpeedPasses, and special themes.Tokyo Disneyland
10 Revitalization of TV and Movies Network Television ProgrammingIncreased movie productionAnimation DepartmentAfter the creation of the Disney Channel, Disney did not produce any shows for network TV. Disney decided that they would start to produce shows for networks again to show the audience of its quality programming. Starting in 1986, they made the Disney Sunday Night Movie, which would be on ABC. They also created shows such as the Golden Girls and Regis and Kathy Lee. They also created a syndication operation to sell some of its TV programming that it had accumulated over the last 30 years to independent TV stations.Disney’s movie department had dropped to 4% in box office shares in In Eisner’s first week, Touchstone had brought him the script to Down and Out in Beverly Hills, the first rated R movie that they had produced. Starting with that movie, 27 of their next 33 movies were profitable and 6 earned over $50 billion. By 1988, Disney held 19% of box office shares, leading in ticket sales. Disney began releasing 15 – 18 films a year.The animation department took longer to revive. Being that it took so long to produce, Eisner decided to expand its staff. This enabled them to release a new animated film every months, rather then its 4-5 years. Disney also invested $30 million into Computer Animated Production System which dramatically reduced the need for animators to draw each frame. In 1988, Disney gambled on the movie Who Framed Roger Rabbit. The gamble paid off. The movie made $220 million just in box office sales, and even more after the selling of merchandise.
11 Coordination Among Businesses Promotional CampaignsInternal Transfer PricesConflict ResolutionCorporate Marketing FunctionOverlaps necessitated the need for coordination among businesses. Campaigns with outside corporate sponsors had to be arranged through all aspects of the business. Conflicts also arose over the Disney-owned minute of advertising during The Disney Sunday Movie. This could be resolved by using general company advertisingDisney used internal transfer prices for activities that one division performed for another. For example, when any division wanted to use material from the Disney film library, it paid a price to the Disney film studio.If a conflict arose between division executives, Eisner and Wells encouraged them to resolve it among themselves, but they also provided the option of arbitration for difficult problems. Management focused on quick resolution, allowing more time to focus on important business matters.In 1987, a corporate marketing function was installed to stimulate and coordinate company-wide marketing activities. A marketing calendar was introduced to coordinate marketing across the company and was updated at weekly meetings with divisions across the company. All divisions were responsible for the generation of new ideas, and a monthly meeting of 20 divisional marketing a promotional executives was initiated to discuss inter-divisional issues.
12 Expanding into new businesses, regions, and audiences Retail-as-entertainmentEuro DisneyFull Length Animated FeaturesOne move Disney made that really benefited them was to operate their consumer products division as a “retail-as-entertainment” concept. By doing this Disney generated sales per square foot at twice the average rate for retail stores. Disney did a good job of selling high-end collectors’ items to reach out and target the grown-up fans. Also in the late eighties to early nineties, Disney founded Hollywood records (a pop music label), Disney Press (published children books), and launched Hyperion Books (an adult publishing label). All of these new divisions founded by Disney proved to be successful because of their low start up costs, and when implemented they turned into huge profits for Disney.Since Tokyo Disneyland was successful, Disney thought they would be able to create Euro Disney, located outside of Paris, France. Euro Disney really struggled because of the cultural differences in Europe. The good move Disney made with Euro Disney was to have Euro Disney S.C.A. shares sold on several European exchanges. This move proved to have saved the company when Euro Disney was a failure. This left Disney with only 49% ownership while the other 51% was owned by shareholders. If Euro Disney would have had full ownership, then Euro Disney could have been very costly for Disney, and maybe force them to file bankruptcy. An alternative to this would be to not even try and build such a big, expensive theme park in Europe. This move was very risky because of the cultural differences. Disney thought that Tokyo Disneyland overcame the cultural differences in Tokyo, but they were wrong with Euro Disney. Disney should have done more research about how much demand there would be for Euro Disney before starting this project.Disney made another good move when they started releasing a series of highly profitable and successful animated features. Some of these animated movies include, The Little Mermaid (1989), Beauty and the Beast (1991), and Aladdin (1992). Beauty and the Beast was the first ever animated film nominated for a Best Picture Oscar. Disney also produced live action films through their Touchstone label. An alterative here would to not make the movie Splash with some partial nudity in it. This caused some criticism and Disney felt they had to apologize for this because they are known more for their films for kids. Purchasing Miramax proved to be a good acquisition because they were an independent production studio making low-budget art films. Some of the films produced through the Miramax label turned out to be very profitable.
13 Maximizing Theme Park Profitability Walt Disney WorldTokyo DisneylandEuro DisneyDisney America
14 Michael Eisner’s Effect Revitalizing TV and MoviesTheme ParksNew BusinessesEisner rejuvenated Disney during his tenure by revitalizing TV and movies, maximizing theme park profitability, and expanding into new businesses, regions, and audiences. When Eisner took over Disney began making more sitcoms on TV and producing more movies than they were before. Eisner was quoted as saying, “Nearly overnight, Disney went from nerdy outcast to leader of the popular crowd.”Eisner also maximized profit through theme parks. The parks had updated and expanded attractions. Disney also lifted restrictions on the number of visitors permitted into its parks, open Disneyland on Mondays, and raised ticket prices. Despite the increase in ticket prices, customers continued going to the parks because they felt they were getting their values worth. Disney began to build hotels and convention centers also.Since Eisner took over Disney began to expand into new businesses. He created the Disney hotels, convention centers, cruise ships, and PGA level golf courses, Disney stores, Hollywood records, Disney Press, Hyperion Books, Tokyo Disneyland, Miramax, acquisition of ABC, Buena Vista Home Video, Anaheim Mighty Ducks, and began Broadway productions. Disney tapped into many new markets during the Eisner era. Many, if not all of these proved to be very profitable and wise decisions. These all account for why Eisner was able to quintuple Disney’s net income.
15 Disney’s Diversification VerticalGeographicProductEffects of Diversification