The difficult business climate in 2008 and 2009 challenged Disney financially.
As one of the world’s largest entertainment and media companies, Disney has had a long record of successes. Although Disney is a U.S.-based company, its businesses span the globe with operations in North America, Europe, Asia Pacific, and Latin America. The president of Walt Disney International says, “We believe there is vast growth to come out of this market, despite the near-term economic turmoil.” When Bob Iger was named CEO in 2005, analysts believed that the Disney brand had become dated. The perception: too much Disney product in the marketplace lacking the quality people expected. Iger said, “That combination, lack of quality and too much product—was really deadly.” At that time also, the Disney brand was more tied to its history than it was to being contemporary and innovative. And, there was this sense that Disney’s target audience was young and that its products couldn’t possibly be of interest to older kids. Iger, who views himself as the steward of the entire Disney brand, immediately recognized the importance of leveraging the company’s vast media content on different platforms. His strategic approach—the Disney Difference—had been working well until the economy slowed. Now, Iger and his management team will have to use all the strategic tools they have to guide the company and keep the magic coming.
1. What is the Disney Difference and how will it affect the company’s corporate, competitive, and functional strategies?
2. What challenges do you think Disney might face in doing business in Russia? How could Iger and his top management team use planning to best prepare for those challenges?
3. With the announced expansion of Disney’s Hong Kong Disneyland, what goals might the company set? What type of planning will be necessary?
4. How might Iger and his top management team use the strategic management process to “keep the magic coming” in the current economic climate?