Iron Man Experience

Figure 11. Iron Man Experience


Social Media

Today social media is a part of people’s lives, and a pretty big one too. The

internet allows firms to reach its customers faster and cheaper. Disney’s official

Facebook page alone has over 50 million likes, Disneyland and Walt Disney World

have around 33 million likes combined; and we are just getting started. Listed below

are the statistics extracted from Disney’s different social media platforms.


Table 14. Social Media Platform and User Statistics

Social Media Platform Statistics

Facebook 50 million likes

Twitter 5.13 million followers

Instagram 7.6 million followers

Youtube 1.9 million subscribers



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Apart from social medias, Disney also runs its own “Buzzfeed” website called

“Oh My Disney” and the “Disney Parks Blog”, which continuously provide contents

about Disney, including new attractions in theme parks, promotion of current releases,

TV series, Movies, trivia, quizzes, and etc. This keeps the fans updated and interested

between their visits to the parks and resorts.


In order to attract the more “mature” customers to Disney Parks and Resorts,

Disney had launched some interesting campaigns. One of them is the “Disney Dream

Portraits”, where Disney casted Hollywood A-list stars as iconic Disney characters in

a set of photo shoots. This marketing activity obviously targeted at customers aside

from children, and appeals to adults (eg. parents) and older fans.



Figure 12. Taylor Swift as Rapunzel




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Fairy Tale Weddings

Many of Disney’s fairy tales are stories of princesses living happily ever after

with the princes they fell in love with, and what more can a girl ask for when it comes

to the ultimate princess experience: getting married in a Disney castle?


Figure 13. Disney wedding


Starting from 2012, happy couples are able to book weddings at Disney Parks in

Florida, California, Tokyo, and Hong Kong. Packages often include ceremony at the

castle, reception at the hotel hall, princess-inspired wedding gowns and bridesmaid

dresses, and so on.


7.9 Service

As Disney parks and resorts offers entertainment it can be considered as a service

company, Service is a good opportunity for the company to improve their guests stay.

The company offers many services to its customers. Here is the list of services

provided by Walt Disney World, no less than 56 extra services are listed to fulfil the

need of most of the visitors and deliver a personalized experience. The list includes



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umbrella rentals, mosquito prevention, laundry service, child care services or car care

center… Service is a key strength of the company and contribute to the main goal of

the company that is providing a unique immersive experience.


Where does the value come from?

Disney Parks and Resorts are magical kingdoms where dreams come true,

bringing happiness and joy to its loyal guests. Being a benchmark business entity in

the leisure industry, the value of Disney theme parks is difficult to be measured in

numbers and diagrams. The value comes from the synergy of all departments within

the organization, thriving to provide the best entertainment for each and every

customer. It is in the technology department, where the animations are so life-like

when projected in 3D; it is in the human resource management and service, where

employees are trained to alway smile to the guest, to be happy to assist the guest in the

best fashion possible; it is in marketing, spreading words and creating trends on the

internet, causing ticket sales to skyrocket every year. Overall, the value of Disney

Parks and Resorts comes from its forever-progressing innovation and quality customer



Differentiation or low cost strategy?

In industries that are more conventional, such as manufacturing or farming, the

low-cost strategy is usually implemented. However, with an entertainment business

such as Disney, all has to give way to the content; they would definitely try to reduce

redundant expenses, but in the end in all come down to differentiation, what differs

Disney Parks and Resorts from its competitors. Running a theme park, especially a

successful theme park, is not cheap, so it would take outstanding contents and

attractions to bring in visitors, to make them feel their ticket price is worthwhile.



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Disney differentiate in its contents, the one and only Mickey Mouse and his friends,

and other classic franchises that are found nowhere in the world. Disney also

differentiate in its service, employees are well-trained in an unique “Disney style”, it

can be seen in their looks, behaviors, and attitude, unlike any other theme parks. In

conclusion, Disney expertise in differentiation, resulting it to be one of the most

successful business in history and the years to come.



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Chapter 8 BCG Matrix and Synergies


This week we focused on the BCG growth-share matrix and the synergies that

Disney has created within the conglomerate. Disney is such an entertainment empire

that it operates in many different industries: theme parks, studios, cable network,

consumer merchandises, and etc. We looked at several SBUs that are more

well-known to the general public, and discuss their positions on the BCG matrix, and

what kind of synergies were produced.



Figure 14. Strategic Level of Disney



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8.1 BCG Analysis


Figure 15. BCG Analysis

8.1.1 ESPN Inc. – Dog

ESPN is part of the Cable Networks division. In 2016, there was no growth in

that division and in particular a decrease in overall revenue as the company faces

lower advertising and affiliation revenue and higher operational and production costs.

The TV industry is not going to have a bright future as new generations spend less and

less time watching shows and more and more time on the Internet. In the BCG matrix

we can consider ESPN Inc. as a Dog.


8.1.2 Lucasfilm – Star

The last major acquisition from Disney group in 2012, Lucasfilm, for $4.06

billion was a smart and profitable move. The phenomenally successful return of Star

Wars, and Studio’s record-breaking $7.5 billion in total box office made the Studio

Entertainment division operating results grew by 28% for fiscal year 2016. We can say

that LucasFilm SBU is a Star in the BCG matrix that will bring growth and profits to

the group with future Star Wars movie currently being produced.



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8.1.3 Disney Channels Worldwide-Question Mark

Disney Channels Worldwide (ABC Cable Networks Group) is under ABC

television Group, which provide television channels ans radio network. This

subsidiary has variety of channels such as Disney Junior (for children 8 years and

under), Disney Channel (kids ages 9–16), Disney XD (pre-teens and young teenagers),

Disney Cinemagic (movie channel in European market), Dlife (women and family

targeted channel), and Hungama TV (for children in India).



As we can see on the report, the revenue in cable network (Disney Channels

Worldwide) has growth 10% from 15,110 million (2014) to 16,581 million (2015).

And the segment operating income also increase about 5%.


Table 15. Revenue in Cable network



Viewer ranking

The network viewer ranking of Disney Channel is number nine in 2015. They

have 1,784,000 viewers. Although they had decrease about 9% watcher from 2014 to

2015, they can still keep their ranking in the front.



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Table 16. Network Viewers



Market share

When it comes to market share, Disney Channel Worldwide have almost 29% of

market rate. The other 71% market share are occupied by their competitors, including

Cbs Corporation, Comcast Corp, Discovery Communications, Inc., Twenty-first

Century Fox, Inc., News Corp, NEWS CORPORATION, Viacom Inc., and others. It

is easy to see how Disney Channel Worldwide take part in this pie.


Figure 16. Cable Networks Segment Market Share



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We consider Disney Channel Worldwide belongs to Question Mark. Nowadays,

there are so many media consumers can choose from. Every step they do may

influence their position in this competitive industry.


8.1.4 Walt Disney Animation Studios – Star

Walt Disney Animation Studios (WDAS) has a long-running history dating all

the way back to Snow White and the Seven Dwarfs, 1937, with the classic fairytales

such as Cinderella and Sleeping Beauty, WDAS has developed and evolved as time

went on. Oscar-winning films including Frozen and Big Hero 6 are also the amazing

artworks produced by WDAS.


Figure 17. Walt Disney Animation Studios


As a SBU of Disney, WDAS does not really have a stock price of its own. To

attempt to declare its position on the BCG matrix, we looked at how well WDAS is

profiting comparing to its competitors over the last few years, mimicking the indicator

of market share.

As the table suggested below, WDAS is one of the top four firms in the animated

film industry (US). Over the last three years, WDAS has generated over 680 million



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USD in box office, occupying approximately 14.5% of the market. Pixar is the leading

studio in this industry, that being said, it is also a SBU of Disney, so overall, we could

say that Disney is ahead of the game. Judging from their results (see appendix table 1),

Zootopia was definitely an exciting success after the already-pretty-successful Big

Hero 6, and it looks like WDAS did not plan on stopping. Moana’s 119 million box

office was achieved in two weeks’ time, as different foreign release date coming up, it

is possible for WDAS to reach a new high.

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