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Disney Strategy

In: Business and Management

Submitted By byakugan
Words 3129
Pages 13
1. Why has Disney been successful for so long? (reference to Industry Analysis, Disney's chosen strategy, Disney's sources of Competitive Advantage and comment on sustainability of advantage)

Disney has remained successful for myriad reasons, not the least of those is its ability to constantly realign its strategy to the trends of the market. Disney is a company that survives by continually realizing the depth of a new idea. The company harvests every available profit from its ventures before acquiring and moving to newer and more forward thinking endeavors. It uses its strength of foresight to predict up and coming industry trends and its incredible scale and wealth of resources to dominate the market. Fundamental understanding of corporate strategy has allowed Disney to vertically integrate during its early days in the film business through the creation of its own distribution network. This forward integration move proved to be an important facet in the success of the Disney strategy, as it allowed them to save at least one-third of the gross revenue for each film. In addition, Disney seemed to have a complete understanding of what it means to have corporate synergy. The company utilized its corporate strategy to successfully diversify, creating a set of complementing and cross-promoting business units that leveraged the already strong Disney brand to maximize shareholder value. A strong corporate culture offers support in uniting the effort brought together by the different business units. Finally, Disney remains successful because of the unique deployment of resources to deliver the sustainable competitive advantages. For example, its ability to balance mass global market domination with brand power proved to be rare and un-substitutable advantages. Furthermore, Disney's copyrights over its intellectual properties helped to ensure that its advantages are

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