This research examines the strategic management issues which must be addressed by The Walt Disney Company in the 1990s. A particular emphasis is placed on the company's transnational expansion operations.
The Walt Disney Company is the direct successor to the business founded by Walt Disney in Hollywood in the 1920s (Moskowitz, Katz, and Levering, 1985). In 1991, Disney is (1) a major producer of motion pictures, (2) the owner and operator of a cable television channel The Disney Channel and of a television station KCAL TV, (3) a producer and marketer of video tapes, music tapes, music records, and publications, (4) a licenser of rights for merchandise production and marketing, (5) the owner and operator of major amusement theme parks in California and Florida, (6) a joint venturer in the ownership and operation of Euro Disneyland in France, and (7) a licenser of Tokyo Disneyland (Swort, 1991).
Walt Disney World in Florida includes the Magic Kingdom Theme Park, Epcot Center, and Disney MGM Studios. Feature film, television, and video productions are produced under the Buena Vista, Touchstone, and Hollywood Pictures names. Disney merchandise is sold through both catalogs and Disney Stores retail outlets.
Theme parks and resorts contribute 48.8 percent of Disney's total revenues, while film operations contribute 39.8 percent, and consumer products and merchandise contribute the remaining 11.4 percent (Swort, 1991). The company earns an operating profit of 27.5 percent on its theme park and resort operations, 13.5 percent on its film operations, and 34 percent on consumer products and merchandise (Swort, 1991).
The Disney organization's basic purpose is to provide the highest level of service through people (Peters and Waterman, 1982). The firm aims to be the leader in providing entertainment which (1) is considered to be acceptable for the family, and (2) creates a feeling of well being among audiences or g...