Disney Economic Power

Introduction

This assignment will seek to analyse the political and economic power of the WDC. By doing so we will look at how their profits and ownership of the market share is able to assist WDC with regard to the economic and political power the company holds.

Background of the WDC

The WDC was founded by two brothers, Walt and Roy Disney on the 16th of October 1923 in Burbank, United States of America as a joint venture company which was called the Disney Brothers Cartoon Studio. At the time, the company focused on cartoon movies in the United States of America. Three years after its inception, the company started producing movies and in 1937 produced the Disney’s first full-length feature film Snow White and the Seven Dwarfs, that were

20, 2017 Internet source: http://dspace.ucuenca.edu.ec/bitstream/123456789/2091/1/tli245.pdf). WDC’s economic power in the media market

Diversification

A very successful way in which WDC has managed to grow its economic power in the media market was through the diversification of its products and services. During its inception, WDC’s main operations were in film through making cartoon movies, however in more recent years after its establishment, the corporation has diversified into four distinct business segments: 1) studio entertainment, 2) consumer products, 3) parks and resorts and 4) customer products.

By doing so, WDC has established its diversification into the following:

1) Studio entertainment which includes entertainment products like animated films, audio and musical products which are sold or hired across the

(The Deadline Team, “Disney giving $90 of its Every Florida Political Dollar to Republicans” 29 September 2012, Internet Source: http://deadline.com/2012/09/disney-giving-90-of-its-florida-political-dollars-to-republicans-345396/ ). If casino gambling was not made illegal in the State of Florida, this would have an immense impact on its Parks and Resorts business segment operating in Florida. In fact, if the gambling in casino laws were not affecting the business operations of WDC, we believe the company would not have contributed $2.5 million towards the election campaign. The example of WDC’s $2.5 million contribution to Florida’s 2012 election campaign indicates that WDC used the power of money to influence politicians to enact a law (making gambling in casino’s illegal) for the benefit of WDC. If Walt Disney was not a profitable company, which had access to $2.5 million, they would most likely not have been able to influence such an election campaign. Therefore, we are able to say that money was able to buy or influence politicians, in return for laws which supported the business interests of WDC. Literature has found that money can buy politicians support, “actions taken by government such as regulatory, legal framework, and political changes may decrease business income