Case Analysis on Walt Disney - 3122 Words

The history, development and growth of Walt Disney Company over time The Walt Disney Company has matured from the children’s cartoon dream-factory of brothers Roy and Walt Disney into the world’s second largest media conglomerate, behind Time-Warner (Hoover’s).In the year 2005, Robert Iger replaced Micheal Eisner as the CEO of Walt Disney. When Micheal Eisner was CEO: Micheal Eisner had a very centralized management style and expected his managers to develop a five-year and ten year plans for their divisions to predict their future growth. Eisner followed the same strategies he followed in the 1980’s in 1990’s. He build Disney’s strengths in three areas of entertainment and recreation,motion pictures and video and consumer products.†¦show more content†¦The profitability began to fall in 2000s for many reasons. Firstly the animation movie business could not create any blockbuster movies after â€Å"The Lion King† and â€Å"Pocahontas† which would drive up revenues. So to earn more revenues, Disney released â€Å"Pirates of the Caribbean† in 2003, which was a big hit followed by its sequels which were successful too. However other flops had offset the studio entertainments unit’s profits. Secondly there was a shift to produce animated movies using computer-based digital technology in 1990s. Before this technology was introduced Disney distributed Pixar’s films such as Toy Story, Toy Story-2, Monsters, Inc., Finding Nemo and The Incredibles. The revenues from these movies became the single biggest income source of profits of studio entertainment. However, Steve Jobs Pixar’s CEO, was reluctant to renew contract with Disney which was due to expire in 2005. This was firstly due to unhealthy relationship between him and Eisner and secondly Disney laid off animators which had created the past success which new computer-based technology was introduced. If the contract was not renewed Disney would fall in huge trouble, because more than 40% or a billion of operating income of its movie studios came from Pixar’s success. Disney’s brightest spot was Miramax pictures, but the Weinstein Brothers who had been attributed toShow MoreRelatedWalt Disney Company Case Analysis1585 Words   |  7 PagesThe Walt Disney Company has been known to more than just t he Americans. It has made a worldwide impact in the entertainment industry for several years. With the popularity of the Walt Disney Company, it was no question for them to expand into something bigger than just their media output. The success of the Disneyland theme park in the USA has made quite an impression internationally. 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