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Prior to Disney’s announcement of its streaming services, Disney pursued a corporate strategy that involved alliance-based acquisitions and franchising of well-known and lesser-known brands. These included franchises from popular series such as Marvel Comics, where Disney obtained a large roster of popular characters such as the Avengers and Black Panther, Star Wars, which netted Disney a four-decade fan base, and Makerstudios, which allowed Disney to build on its original content creation capabilities. Through these acquisitions, Disney was able to leverage its significant and established core competencies in distribution, branding, marketing, and product franchising, and use these core competencies to drive growth in multiple channels such as theme parks, comics, publications, televisions to establish multi million dollar brands. (Wasko, 2020) Disney’s core competencies were then used to scale these properties to much larger product lines. For example, Marvel Studios was built into the 20-movie ‘Marvel Cinematic Universe’, as well as a range of Marvel television shows and cartoons. Star XXXX XXX XXXXXXXXXXXX into the Disneyland Theme Parks, XXXX innovative XXXXX XXX interactive theme XXXX zones XXXX as ‘XXXX XXXX: XXXXXX’s XXXX’. In XXXXXXXX, Disney XXX able to successfully XXXXX new XXXXXXXXXXXX in areas XXXX as IP properties and XXXXXXX creation. (XXXXX, 2016)
2. Why do you think Disney's XXXXXXXXXXXX of Pixar, XXXXXX, XXX XXXXXXXXX XXXX so successful, XXXXX other XXXXX XXXXXXXXXXX XXXX XX XXXX's XXXXXXXXXXX of Columbia XXXXXXXX and News Corp.'s XXXXXXXXXXX XX Myspace XXXX much less XXXXXXXXXX?
Disney’s XXXXXXXXXXXX of Pixar, XXXXXX XXX XXXXXXXXX XXXX XXXXXX XXXXXXXXXX compared to XXXX’s XXXXXXXXXXX of XXXXXXXX Pictures XXX XXXX XXXX’s acquisition XX Myspace, XXXXXXX of Disney’s XXXXXXXX XXXXXX valuation of XXXXX XXXXXXXXXX, the XXXXXX synergies with XXXXXX’s XXXXXXXX XXXXXXXXXX, XXX XXX ability to tap XX XXXXXX’s existing capabilities. Foremost, XXXXXX XXXXXXXX assessed an accurate market valuation XX the XXXXXXXX properties, XX they were undervalued XX the time of acquisition, and XXXXXXXX assessed that they had strong XXXX-XXXX XXXXXX XXXXXXXXX. Properties like XXXXXXXXX, XXXXXX and Makerstudios XXXXX go XXX o XXXXXXX XXXXX-XXXXXXX XXXXXX franchises XXX XXXXXX. This XXX in contrast to News XXXX, XXXXX XXXX on the failing XXXXXXX with anemic growth, or Sony, which acquired XXXXXXXXX XXXXXXXXXX XXXXXXX XXXX taking XXXX XXXXXXXX Pictures, XXXXX XXXX already XXXXXXXXX. Secondly, XXXXXX’s acquisitions succeeded because XXXX had XXXXXX XXXXXXXXX XXXX XXXXXX’s existing XXXXXXXXXX, and allowed Disney to XXXXX a XXXXXX friendly XXXXXXXXXXXXX empire. (XXXXX, XXXX) Thirdly, the acquisitions XXX XXX XXXXXXX to tap on XXXXXX’s existing capabilities, in XXXXX such as XXXXXXXXXXXX, XXXXXXXXXXX, XXXXXXXX, marketing XXX sales, XX drive XXXXXXX XXXXXX XXX XXXXXXXXX, XXXXXX XXXX, XXXXX XXXXXXXXXX Columbia XXXXXXXX’ capabilities, or News XXXX, which XXX XXX know how to XXXXXXXXXXXX XXXXXXXX Myspace’s XXXXXX XXXXXXXX XX drive further news distribution. Finally, XXXXXX’s acquisition XXXXXXX the XXXXXXXX of original XXXXXXX XXXX XXX XXXXXXXXX to XXXX-offs.
X. Do you think XXXXXXXX on billion-dollar XXXXXXXXXX XXX XXXX a good corporate strategy for XXXXXX? XXXX XXX XXXX XXX cons XX this strategy?
XXXXXXXX XX XXXXXXX-XXXXXX XXXXXXXXXX has been an effective corporate strategy XX it allows XXXXXX XX XXXXX XXXXXXXX brands XXXX tremendous XXXXXX potential, XXX XX exploit XXXXXXXXX XXXXXX its properties in XXXXX of audiences XXX XXXXXX. For XXXXXXX, XXXX Wars XXX XXXXXX XXXX are XXXXX the same XXXXXXXXXXX, XXXXX allows Disney XX XXXXX-sell XXXXXX both product types. XXXX creates the XXXXXXXXXXX XXX XXXXXXXXXX XXXXXX growth. Furthermore, XXXXX franchises allow XXX near-limitless market XXXXXXXXX potential.
However, XXXXXX faces several disadvantages in XXXXXXXX billion dollar XXXXXXXXXX exclusively. Foremost, its XXXXXXXXXX is XXXXXXXXXXX, XX XXXX XXXXXXXX chooses the XXXXXXX XXXXX XXXXXX at the expense of disruptive XXX XXXXXXXX. XXXXXXXX, Disney XXX XXXXXX from XXXXXXXX XXXXXXX, XX XXX moribund XXXXXXXX XX some XX the XXXXXX XX shows XXXXXXXXXXX. (Calandro, XXXX) Thirdly, XXXXXX XXX be unable XX XXXXXXXXX XXXXXXXXXXX, and in so doing, may become XXXXXXXXXXX XX a XXX XXXXXXXX XXXXXX XXX XXXXXXXX XXX XXXXXX as a result. (XXXXX, XXXX)
X. Given the XXXXX-borrow-or-buy framework, XX you think Disney should XXXXXX XXXXXXXXXXXX to acquisitions? Why or XXX not?
XXXXXX XXXXXX definitely XXXXXX XXXXXXXXXXXX XX XXXXXXXXXXXX, and XXXX to build XXXX properties in-house rather XXXX XXXXXXXXX or XXXXXX. This XX because a build-based XXXXXXXX allows Disney to XXXX a XXXXXXXXXXX upstream XXXXXXXX XXX development arm to continuously produce XXX consumer XXXXXXXX and entertainment XXXXXXXXXX, XXXXX avoiding XXX competition XXXX a buy-XXXXX XXXXXXXX, or the licensing XXX franchising XXXX XXXXXXXX in a borrow-XXXXX XXXXXXXX.
5. Given XXXXXX's focus XX creating and monetizing billion-XXXXXX franchise, XXXX industry observes XXX XXXX Disney XXXX XX a XXXXXX XXXXXXXX XXXXXXXX XXXXXXX like XXXX XXXXXX than a media company. XX you XXXXX XXXX this XXXXXXXXXXX? XXX or XXX not? What XXXXXXXXX implications XXXXX it XXXX if Disney is XXXXX a global XXXXXXXX XXXXXXXX XXXXXXX XXXXXX XXXX a media XXXXXXX.
XXXX XXXXXX XXXXXX XXXX a XXXXXX XXXXXX XXXX the perspective XXXX Disney XXXXXXXXX a global XXXXXXXX products XXXXXXX like XXXX, XXXXXX than a XXXXX XXXXXXX. XXXX XX XXXXXXX Disney, at present, XX XXX more intent XX XXXXXXXXXXX XXX product XXXXX XXXX XXXXXXXXXX new media XXXXXXXXXX, XXXXX XXXXXXX XXXXX parks, XXXXXXX, XXXX XXX consumer-branded XXXXX. (XXXXX, XXXX) Furthermore, Disney XXX shifted XXX focus XX develop non-traditional XXXXXXXXXXXX XXXX aggressively, XXXX as supply chain XXXXXXXXXX. XXXXXXX, XXXXXX XX now XXXX exposed XX risks XXXX XXXXX sectors due to XXX shift to being a XXXXXX XXXXXXXX XXXXXXXX company. This XXXXX have the XXXXXXXXX XXXXXXXXX implications XXX XXXXXX. XXXXXXXX, Disney XXXXX XXXX XX XXXXXXXX the additional XXXXX from XXXXXX XXXXXX chains and XXXXXXXXXXXX XXXXXXXX. Secondly, Disney is XXX able to XXXXXX a core XXXX XX its XXXXXXXX in physical goods, which are XXXX XXXXXX XXXX XXX highly XXXXXXXX media XXXXXXXX. XXXXXXX, XXXXXX XXXX XX able to XXXXXXXXX XXXX XXXX XXX traditional XXXXXXXX XX media properties. (Wasko, XXXX)
X. XXXX type of corporate strategy is evidenced in Disney's announced streaming services? What are XXX potential XXXXXXXX XXX XXXX of XXXX strategies?
XXXXXX’s corporate strategy is currently one XX diversification and XXXXXXX XXXXXXXXX. XXXXXX’s XXXX into XXXXXXXXX XXXXXXXX XXXXXXXXXXXX an XXXXXXX XX XXXXXXXXX into television XXX in-house streaming production, and to capture a XXXXXX part XX XXX XXXXX value chain XX XXXXXXXXX XXXX XXX XXXXXXXXX Netflix. XXX XXXXXXXX’s benefits XXXXXXX higher XXXXXXXXX growth and higher profits from a platform-XXXXX entertainment ecosystem. The strategy’s risks are XXXXX dilution, high competition XXX the XXXXXXXXX XXXXXXX of a platform if it does not reach critical mass.
References
XXXXXXXX, J. (XXXX). XXXXXX's XXXXXX acquisition: a strategic financial analysis.Strategy & Leadership.
Paque, X. (2016).Is the management of copyrighted contents XXX real XXXXX of XXX Walt XXXXXX XXXXXXX?(Doctoral XXXXXXXXXXXX, XXXXXXXXXX Catholique de XXXXXXX).
XXXXX, X. (XXXX).XXXXXXXXXXXXX Disney: XXX manufacture XX XXXXXXX. John Wiley & XXXX.
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