Disney employs both vertical and horizontal integration as part of its ultimate corporate strategy in order to sustain the company’s growth. In regards to that, Disney’s corporate strategy aims at achieving sustainable competitive advantage by effectively operating in several businesses simultaneously. Vertical integration is divided into two categories which are backward and forward integration. It is a strategy that a company uses to strengthen its supply chain, reduce its cost of production or to gain access to new distribution channels. This is evident from the case study when Disney acquired Capcities/Abc, which is known as a television network company. The acquisition has brought together to create the most profitable television network worldwide. This acquisition is considered a vertical integration because the takeover allowed Disney to broadcast its production, while still retaining complete control of its business. In addition, Disney is known to be largest media conglomerate …show more content…
This would negatively impact the performance of the company. An example of this would be Disney’s lack of international integration of its global markets. Due to the cultural differences and the lack of market penetration, it had negatively affected their profit, which stood at only 21% of revenue generated from abroad. On impact, Disney has planned on better integrating the international markets so that it would generate greater international sales. On the side note, different countries have different culture and so it would be an obstinate issue for a company like Disney to adapt to a new environment. More precisely, in the case, it has stated that from the past, each division has opened up to foreign offices and therefore, indicating the potential loss of control that was initially held by