Figure 21. Internet Users in the World
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Figure 22. The Growth of Interactive Media Industry
The number of smart phone user is predicted to increase in the future also
contribute to the growth of the interactive media industry.
8.1.8 Disney consumer product – Question Mark
Disney Consumer Products (DCP) is a subsidiary and business segment of The
Walt Disney that merchandises the Disney brand and Disney properties with hundreds
of categories from toys, books to clothing and accessories, and more.
In June 2015, The Walt Disney Company merger Disney Consumer Products and
Disney Interactive to form a new cooperation Disney Consumer Products and
Interactive Media (DCPI)
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Table 24. The Walt Disney Revenue and Segment Operation Income
As can be seen in the table, the revenue of DCPI fluctuated slightly in recent
years which started at 5.284 million in 2014 then increased about 7% in the next year.
In 2016, this figures decreased to 5.528 million from 5.673 million. In general, this
business segment plays a smallest role in the whole revenue of The Walt Disney
revenue. The income just remains steady until now.
Consumer product Industry Composition: The consumer products industry is a
intensive industry which makes up about 70% of the volume of trade in the world
economy. Due to it strongly relates to other industries, the consumer products industry
has big influence and important role in the global economy.
Although the revenue of the DCPI is pretty low but look at the trend of the DCPI
industry, we have strong belief of this business segment in the future. Interactive
media industry, along with the development of smart phone and internet as well as
consumer product which plays important role in the economic van have their own
market which can be enlarged in the future.
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8.2 Synergy among SBUs
Disney being this enormous entertainment empire, and its businesses so closely
interlinked, is certain to have a certain level of synergy created through its operation
and management. The most obvious synergy would be marketing synergy. A
successful Disney movie would positively affect the sales of its related merchandises,
motivate people to visit its attraction or ride (in the Disney theme park), and promote
related programs on the Disney Channel. For example, the success of the Star Wars
movies boosted sales in its merchandises, and got people excited about the upcoming
theme attraction in the theme parks.
Operating synergy happens when two or more divisions pool their resources and
create a superior performance together. A suitable example would be the more and
more common 3D rides in Disney theme parks, where the craft of animation and the
thrill of roller-coasters join forces to create incredible memories for the guests, the
new Finding Dory ride in Tokyo Disney and Iron Man ride in Hong Kong Disney.
People would think that now Pixar belongs to Disney, their animation team could
merge and form a “dream team”, but actually they still have their own separate teams
of animators and story-tellers. They do share high-level executives and sometimes
give each other feedbacks on their work; we could say there has been a bit of synergy
going on between the two.
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