Internet Users in the World

Figure 21. Internet Users in the World

The Walt Disney Company Case Study

78 FCU e-Paper (2016-2017)

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)

The Walt Disney Company Case Study

79 FCU e-Paper (2016-2017)

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.

The Walt Disney Company Case Study

80 FCU e-Paper (2016-2017)

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.

The Walt Disney Company Case Study

81 FCU e-Paper (2016-2017)

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