Consumer product revenue of the Walt Disney Company

Figure 25. Consumer product revenue of the Walt Disney Company



Vertical integration

& Market contracts



Vertical integration

& Market contracts




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9.1.4 ABC Networks Group

In 1995, Disney mergers and acquisitions ABC Networks Group to expand its

market. Disney knows this media distributer could help Disney to build up its status in

the industry and even take over the market.

The vertical integration in ABC Networks Group become more and more

complete. Firstly, ABC Group plan and produce variety of its own TV program such

as “The Suite Life of Zack & Cody,” and “High School Musical”, etc. Secondly, then

they can market and distribute through their Channel such as Disney Channel or ABC

News. Thirdly, they can even authorize to produce merchandise. As above process,

Disney distribute its product almost from the top to the end.

The result shows that this different integration between Disney and ABC

Networks Group is a right decision because the popularity of Disney Company and

many things related to “Disney”.



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9.2 SIC Code of Walt Disney Cooperation

Below are the business type and SIC code of Disney businesses, which has

spread across quite a few diversified industries as we know today.


Table 26. SIC Code of Walt Disney Cooperation

Business Type Primary SIC Code

Disney Interactive

Media Group

Professional, Scientific, and

Technical Services

7373 – Computer Integrated

Systems Design

Disney Consumer

Products Inc

Administrative and Support and

Waste Management and

Remediation Services

7389 – Business Services, Not

Elsewhere Classified

Walt Disney Parks

& Resorts Arts, Entertainment, and Recreation 7996 – Amusement Parks

Walt Disney

Animation Studios Information

7812 – Motion Picture and Video

Tape Production


Networks Group Information

4841 – Cable and other Pay

Television Services


9.3 Diversification of The Walt Disney Company

One of the main strength of The Walt Disney Company is its diversification

strategy. The Walt Disney Company started as a studio, then after successful years of

movie production the company entered the amusement park industry with the opening

of Walt Disney World. Later the company entered the Television industry with Disney




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The corporation managed to spread its original creations through non-related

industries such as amusement parks and on a smaller extent to television. To make it

clear, cinema and television industries can be related in some aspects but still remain

mainly non-related industries as only a small part of television programs is coming

from the cinema industry. Television industry can be considered as a small additional

distribution channel for the cinema industry. Finally, television and cinema industry

are non-related as they don’t need the other.

Repartition of 2013 global revenue

Figure 26. Repartition of 2013 Global revenue


The company is present at a smaller scale in two more industries, a non-related

one Digital Industry (Interactive Division) and a related one Consumer products.

Disney Interactive contains video games and websites businesses. Disney Consumer

products is simply the merchandising of Disney’s Characters and stories.

The conglomerate grew phenomenally in each sector by acquiring and creating

strategic businesses inside an industry.

In the movie production industry, it is now one of the “Big Six”, the biggest



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studios in Hollywood. In the amusement park industry Disney is the indisputable

leader. And in the television networks industry it owns three of the best channels by

audience size, ABC, ESPN and Disney Channel.

The diversification strategy seems to be a long-term win for the group as having

revenue streams from independent industries dilutes risks.




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Chapter10 Diamond Analysis

10.1 Factor endowments: Disney parks and resorts USA

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