Pixar Disney: Failure Of The Walt Disney Company

Out of the 12 listed above two(Miramax and the Anaheim Angels) were sold out and one(Saban Entertainment) saw some of its assets sold. However the remaining eight are still part of the Disney family. From a strategic prospective I would consider New Horizon Interactive a failure cause of whose Cub Penguin failed to meet its target. But these failures didn’t affect the rest of marvelous acquisitions of the Walt Disney corporation. Let us begin with the acquisition of Pixar(2006). With Disney and Pixar together ranks among the best acquisitions of all time. Analyst believed that Disney needed this acquisition since its own animations were failing one after another. With acquisition of Pixar Disney not only got access to the Pixar technology but

SWOT Analysis

Strengths:

• Brand recognition: Disney is a brand that is known worldwide due to its Disney channels, parks/resorts and its movies. Disney is one such company that can adapt to cultural changes and capable of selling to many different culture.

• Strong product portfolio: as mentioned above Walt Disney include broadcast television network ABC and cable network Disney channel or ESPN- one of the most watched networks in the world. For fiscal 2013, revenues from Media Networks increased 5%, to $20.4 billion, and segment operating income increased 3%, to $6.8 billion(Nair,2014.) Surely product portfolio gives Disney a competitive advantage over its competitors.

• Diversified business: Disney operates in five different segments- media networks, parks and resorts, studio environment, consumer products and interactive media. Doing so it generates its revenue from different business sections and has also been able to diversify its risk. For example- the failure of “John Carter” at the box office was backed up by Disney parks and

Acquiring firms like Pixar animation and Marvel have been proved to be very successful. Similarly the acquisitions of Lucasfilms have given Disney the rights to previous works including Star Wars.

• Localization of Products: Besides parks and Resorts Disney have started localizing and adapting its product according to the customer’s taste. This is rarely initiated by the movie studio itself and is something that few other studios are doing (Jurevicius,2014)

Weakness:

• Main target is still children: children are an unstable audience. It is easy for them to get bored quickly and move from one product to another within short span of time. Although Disney is trying to cater to all demographic, its main audience still remain children.

• Frequent change in top management:

• High Operating cost: Disney being a huge conglomerate group holds exceptionally high operating cost. The constant need of maintaining and upgrading the Disney parks, resorts and cruise just adds up to its financial burden. The company cannot anyhow compromise with the standard of its product, which may continue to escalate the