Disney's Business Model: A Scalable Dream Factory (2024)

FAQs

What type of business model does Disney have? ›

Disney's business model is scalable: Its brands fuel many value propositions and generate diverse revenue streams. Disney's business is not just about making movies, but about creating and sustaining brands.

Disney utilizes a decentralized cooperative multidivisional (M-form) organizational structure. This focuses on different business types and is common in diversified companies that have a wide breadth of operations, especially where these operations are carried out globally.

The Walt Disney Company, together with its subsidiaries and affiliates, is a leading diversified international family entertainment and media enterprise with five business segments: media networks, parks and resorts, studio entertainment, consumer products and interactive media.

The Disney Strategy is a business strategy that is used by the Walt Disney Company. It is a four-pronged strategy that focuses on creativity, storytelling, technology, and innovation. Creativity is at the heart of the Disney Strategy.

Question: Walt Disney Company has four major strategic business units: movies (including Pixar and Touchstone), consumer products (Walt Disney World and Disneyland), consumer products (the Disney Store), and television (the ABC/Disney Television Group and ESPN).

By employing tactics such as emotional advertising, cross-promotion and synergy, and strategic content distribution, Disney ensures that its messages resonate with consumers and reach them through various touchpoints.

Competitive Analysis

Disney has proven to be the market leader in the media industry, with the largest market-share by revenue of all competitors. This past year, Disney reported $52.465B in revenue which is equivalent to 31.82% of the total revenue generated by its ten closest competitors combined.

What does the Disney Org Chart look like in 2024? The company has a complicated organizational structure, with different divisions and subsidiaries. The five main divisions are Media Networks; Parks, Experiences, and Products; Studio Entertainment; Consumer Products; and Interactive Media.

By analyzing the bargaining power of suppliers, the bargaining power of buyers, the threat of new entrants, the threat of substitutes, and competitive rivalry, this framework can provide valuable insights into the industry and help Disney to make informed strategic decisions.

Naming Disney's biggest rivals depends on the business unit. If you're looking at film and television, its rivals include Universal (which is owned by Comcast), Sony, Time Warner, and ViacomCBS. Netflix and Amazon are Disney's main competitors in the streaming service space.

What is the core business of Disney based on? ›

Introduction Company Background Theme park is the core business model of the American media giant the Walt Disney Company.

Entertainment is the largest segment for Disney thanks to its robust streaming business. Following closely behind is Disney's experiences revenue, which is quickly growing with a 7% increase year over year in the first quarter of 2024.

The company has pursued a diversification strategy, which means purchasing other companies that enable it to bring new products into new markets while remaining true to Disney's origins. Today, 54% of Disney's revenues—but only 32% of its profits—come from movies and parks.

Disney is also prioritizing strategic investments to turbocharge growth in our Experiences business, and is planning to invest ~$60 billion in capital over the next 10 years to enhance and expand domestic and international parks, as well as cruise line capacity.

According to Disney Careers, their company values are optimism, innovation, decency, quality, community, and storytelling. As you can see, these are far from generic. They're very specific to the Disney brand.

Disney uses product differentiation as its generic strategy for competitive advantage. Michael Porter's model states that this strategy involves unique products offered to many market segments.

Disney creates a culture with a sense of belonging, devotion, and employees who want exceed customer expectations. This is achieved through the manner in which they are trained, rewarded, empowered and treated. How is that, you ask? They are treated upon selection as if they are guests.