10.5 Government

As the Walt Disney Company is related to different regulated industries such as

Media, Cinema and Tourism new regulations can have a big impact on some of the

company’s activities.

This is why in 2016 the company spent $2,890,000 on lobbying to influence new

regulations to be favorable to its businesses.

Also, the company is working with local government. For example, cooperation

with the Shanghai government who helped the group to open the Shanghai park and

developed a whole tourism zone near the area to attract even more people by building

new metro and road connections.

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Chapter 11 Conclusion

Over the course of this semester, we studied The Walt Disney Company in

great detail; for most of the analyses, we focused on Disney’s theme park business:

Disney Parks and Resorts. We learnt about Disney’s history dating back to almost a

century ago. We leant about its founders, its ups and downs, to what it has become

today as we know it: an entertainment empire. Through analyzing its strategies, we

learnt that Disney has a vision that runs through its businesses, that is to create

happiness for all, and has been realizing it through all kinds of entertainment.

Disney’s six theme parks all over the world brought happiness and joy to its millions

of guest annually. The synergy that has been generated through collaboration of its

different divisions was indeed enormous and effective. Even though there are some

big theme park franchises out there competing with Disney, none even came close to

threaten Disney’s leading position.

We then analyzed Disney Parks and Resorts’ capabilities and resources.

Needless to say, Disney was both resourceful and capable. The level of vision and

resource they have to make risky but rewarding acquiring decisions (eg. Marvel

Studios, Lukasfilm), are just part of the reasons how Disney built its success. Unlike

the more traditional manufacturing businesses, Disney sells “dreams” and “happiness”

to its customers, the value of their product are beyond the material dimension. When

we visit a Disney theme park or purchase a Mickey Mouse plushie, it is the meaning

and stories behind them that is the most valuable thing to us. Through the BCG

analysis, we discovered that most of Disney’s business are quite successful, and will

continue to success in the near future, only some that is in the media industry and

consumer product industry that would require some strategic change for improvement.

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Within the conglomerate, Disney is both diversified and vertical integrated; its

businesses and product categories spread across multiple platforms, and they are all

generated from the creativity of the human mind.

In conclusion, Walt Disney is the master of globalization. Besides the

manufacturing industries, services industries are also a key factor which plays an

important role in the economy. Walt Disney is the largest company in entertainment

business, and they also create a big volume of revenues in worldwide top industries.

By analyzing this company strategies, we get the general view on why/how Walt

Disney achieved their goals today and how they established themselves to become as

a global brand. Furthermore, Walt Disney has been developing and changing

continuously as a result of merchandising. With a great strategy like this, it would be a

long way for their competitors to catch up with their amazing cooperation.

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