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Disney: Building Billion Dollar Franchises
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1. Before announcing its streaming services, what type of corporate strategy was Disney pursuing? Which core competencies were shared and how?</span></p> <p><span class="s1"></span> </p> <p><span class="s1">1. Before Disney launched into the streaming services market, Disney was focus on a corporate strategy of alliance-based acquisitions and franchising. The core of Disney’s strategy was essentially one that created alliances and used acquisitions to incorporate other media businesses to create theme-based franchises. Disney strategically acquired companies to capitalize on specific assets. For example, Disney got a roster of beloved characters and their IP from Marvel, the legendary Star Wars franchise from Lucasfilm, and experience in Youtube content creation from Makerstudios. This allowed Disney to leverage its significant advantages in its distribution network, stellar reputation, marketing, brand building, and product expansion across a plethora of channels, such as streaming revenue, toys and merchandise, books, ebooks, gaming, TV shows and theme parks, to build billion dollar brands. Its shared competencies of a robust distribution network across multiple channels, a strong brand name, a dedicated marketing team, brand building expertise, and franchise building experience also allowed it to successfully monetize its acquisitions. For example, it turned the struggling roster of beloved Marvel characters into a highly profitable shared XXXXXXXXX XXXXXXXX, XXX XXXXXXXX XXX XXXX XXXX galaxy XXXXXXX merchandising, TV XXXXX and games.<span class="XXXXX-converted-XXXXX"></span></span></p> <p><span XXXXX="s1"></span> </p> <p><span class="XX">X. XXX do you XXXXX XXXXXX's acquisitions of XXXXX, XXXXXX, and XXXXXXXXX XXXX so successful, XXXXX other media XXXXXXXXXXX such XX XXXX's XXXXXXXXXXX XX Columbia Pictures XXX News XXXX.'s XXXXXXXXXXX of XXXXXXX XXXX much less successful?</span></p> <p><span XXXXX="XX"></span> </p> <p><span class="s1">2. Disney’s XXXXXXXXXXXX XX Pixar, XXXXXX and Lucasfilm were so XXXXXXXXXX XXXXXXX they XXXXXXXX XXXXX valuations of market XXXXXXXXX, XXXX XXXXXX’s shared XXXX competencies, XXX were suited XX building billion-dollar XXXXXXXXXX. Foremost, XXXXXX’s XXXXXXXXXXXX of XXXXXXXXX, XXXXXX and XXXXXXXXXXXX XXXX based on XXXXX valuations XX XXXXX market potential. XXXXXX could XXX XXXX XXXXX XXXX undervalued franchises XXXXXXXXXX to expand, XXX that a successful acquisition would allow Disney XX XXXX a great deal at a low price. These acquisitions also XXXXXXX XXXX with XXXXXX’s strategic priorities. Conversely, XXXX XXXX XXXXXXXX an XXXXXXXXXX XXXXX in Myspace, which XXX already XX XXX XXXXX of decline, XXXXX XXXXXXXX XXX a XXXXXXXXX expensive white elephant XXX XXXX, XXXXX XXX not truly XXXX the XXXXXXXXXX XXXXXXX XXXX Columbia Pictures offered. XXXXXXXX, Disney XXXXXXXXX because it could use XXX shared XXXX competencies, such XX XXX distribution network, XXXXXXX reputation, marketing, XXXXX building, XXX product XXXXXXXXX XXXXXX a plethora XX channels, such as streaming revenue, toys and merchandise, books, ebooks, gaming, TV XXXXX XXX theme parks, XX XXXXX billion dollar brands. Thirdly, XXXXXX XXXXXXXXX XXXXXXX XXXXXXX of its acquisitions XXXXXXXX XXXXXXXX content with strong XXXXXXXXXXX that Disney XXXXX XXXX XXX XX build XXXXXXXXXX through XXXXXXXXX across XXXXXXXXX verticals, XXXX as merchandising, XXXXX XXXXX and co-branded product XXXX offs. The XXXX XXXX XXXXX and Marvel lunchboxes XXXX have XXXXXX ubiquitous in pop XXXXXXX today are a XXXX XXXXXXX XX XXXX XXXXXXXXXXX.</span></p> <p><span XXXXX="s1"></span> </p> <p><span class="XX">X. Do you XXXXX focusing XX billion-XXXXXX XXXXXXXXXX has XXXX a XXXX XXXXXXXXX XXXXXXXX XXX XXXXXX? What XXX pros and cons XX this XXXXXXXX?</span></p> <p><span class="XX"></span> </p> <p><span class="s1"></span> </p> <p><span class="XX">XXX XXXX XX a XXXXX on XXXXXXX XXXXXX franchise are the strong XXXXX reputation, XXX huge XXXXXX potential and the synergies XXXX XXXX XXXX such a franchise. Foremost, XXXXX XX a strong XXXXX XXXXXXXXXX XXXX Disney acquires XXXXX time it XXXXXXX XX XXXXXXXX a XXXXXX or Lucasfilm-XXXX company, XXXXX comes XXXX the XXXXXXXXXXX XXXXXX XXXX decades that XXXXX XXXXXXXXX XXXX XXXXX XX. XXXXXXXX, there is XXXXXXXXXX market potential in XXXXXXXXX XXXXXXXXX XXXX XX XXX XXXX Marvel XXX XXXXXXXXX XXXX XXX XX, which Disney XX able to monetize XXXXXXXXXXXX. Thirdly, XXXXXX XXXXXXXX XXXX XXX XXXXXXXXX in demand XXX XXXXX XXXXXXXX. XXXXXXXXX XXX watch Marvel XXXXXX are also XXXXXX XX enjoy Star Wars movies. XXXX XXXXXXX XXXXXXXXX XXX XXXXXXXXXX expansion by leveraging XXXXXXXXX in audience demand across XXXXXXXXX franchises.</span></p> <p><span XXXXX="XX"></span> </p> <p><span class="XX">XXXXXXX, there are XXXXXXX downsides. Disney XXXXX XXXX the risk of XXXXXXX XXXXXXXXXXXXXXX, the loss XX innovation XXX originality, a XXXXXXXXX XX market, underperforming XXXXXXXXXXXX, XXX the risk XX brand dilution. Particularly worrying XX XXXX, XX XXXXXXX too XXXXXXX on billion dollar XXXXXXXXXX, XXXXXX XXXXX XXXXXXXXXXX XXXX its XXXXXXXXXXX that drove XXXX XX XXX XXXXXXX in XXX first XXXXX. For example, Disney XXXXX XXXXXXX its in-XXXXX XXXXXXXXXX XXXXXXXXXXX and become XXX reliant XX XXXXX XXXXXXXXXX established XXXXXXXXXX. Furthermore, XXXXXXXXX may become fatigued with XXX XXXX similar shows, such XX XXX latest ‘Loki’ spinoff or XXX XXXXXXX Star Wars prequel TV show, XXX begin XX lose XXXXXXXX. XXXXXXX, Disney XXX become diluted as a brand XXX to XXXXXXXXXXXX XX a XXX XXXX-XXXXXXXXXX franchises.<span class="Apple-converted-space"></span></span></p> <p><span class="XX"></span> </p> <p><span class="XX">4. XXXXX the XXXXX-XXXXXX-or-XXX XXXXXXXXX, do you XXXXX Disney XXXXXX pursue XXXXXXXXXXXX to acquisitions? Why or why not?</span></p> <p><span XXXXX="XX"></span> </p> <p><span class="s1">XXXXXX should XXXXX XX focus XXXX on building XXXXXX than borrowing XXX buying. XXXX XX XXXXXXX XXXXXX has XXXXXX XXXXXXXXXXX XX XXXXXXXXX and XXXXXX XXX reputation XX XXXXX companies XX fuel its XXXXXXX-XXXXXX XXXXXXXXXX. Disney should XXXXXXX XXXXXX in-house innovation to XXXXXX novel XXXXXXXX XXXXXXX relying XX XXX tried-and-XXXXXX XXXXXXXX XX other XXXXXXXXX. This XX because such a XXXXXXXX XXXXX XXXXX Disney to XXXX XX XXXXXXXXXXX costs, XXX would XXXXX XXXXXX to XXXXXX novel and fresh content XXXX continues XX appeal XX new audience segments.<span class="Apple-converted-XXXXX"></span></span></p> <p><span XXXXX="s1"></span> </p> <p><span XXXXX="XX"><XXXXXX>5. XXXXX Disney's focus XX XXXXXXXX XXX XXXXXXXXXX billion-dollar franchise, XXXX XXXXXXXX observes now view XXXXXX XXXX XX a XXXXXX consumer XXXXXXXX XXXXXXX like XXXX XXXXXX than a XXXXX XXXXXXX. XX you XXXXX with this XXXXXXXXXXX? Why or XXX not? What XXXXXXXXX implications XXXXX it XXXX if XXXXXX XX XXXXX a XXXXXX XXXXXXXX products XXXXXXX rather than a media company.</XXXXXX></span></p> <p><span class="XX"></span> </p> <p><span XXXXX="s1">I agree with the XXXXX XXXXXXXXXXX XXXX XXXXXX, XXXXX its XXXXX on creating XXX XXXXXXXXXX billion-XXXXXX franchises, has evolved XXXX XXXX a XXXXXX XXXXXXXX XXXXXXXX XXXXXXX XXXXXX than a XXXXX company. The XXXXXXXXX XXXXXXXXXXXX XXX XXXXXX XXX XXXXXXXXXX. Foremost, such a shift would XXXXXXXX XXXX Disney XX now XXXX invested in a broader range XX XXXXXXXX XXXXXXX channels rather than XXXXXX providing media XXXXXXX, which XXXXX XXXX XXXXXX is intent on focusing on a strategy XX diversification. XXXXXXXX, the shift XX XXXXXXXX XXXXXXXX means that XXXXXX has to now build other XXXXXXXXXXXX that it has not traditionally XXXXXXXXX, such XX XXXXXX chain management. XXXXXXX, the move to XXXXXXXX products XXXXX XXXX Disney XX XXX more exposed to XXXXX in other sectors, such as those of the merchandising sector.<span XXXXX="XXXXX-converted-XXXXX"></span></span></p> <p><span class="XX"></span> </p> <p><span class="XX">6. What XXXX of XXXXXXXXX XXXXXXXX XX XXXXXXXXX in XXXXXX's announced XXXXXXXXX XXXXXXXX? XXXX are XXX potential XXXXXXXX and XXXX of such strategies? </span></p> <p><span XXXXX="XX" <XXX="" corporate="" XXXXXXXX="" evident="" in="" disney’s="" announced="" streaming="" services="" XX="" one="" XX="" XXXXXXXXXXXXXXX.="" disney="" XXXXXXX="" wants="" XX="" XXXXXX="" XXXX="" XXX="" market="" order="" take="" XX="" incumbent="" player="" a="" highly="" XXXXXXXXXX="" XXXXXX,="" XXXXXXX.="" benefits="" such="" XXX="" tremendous="" potential="" alongside="" ability="" XXXX="" high="" XXXXXXXX="" XXXX="" XXXXXX="" platform="" ecosystem="" XXXX="" XXXXXXX="" and="" charge="" for="" licenses="" other="" XXXXXXX="" providers.="" XXXXX="" lack="" competencies="" which="" will="" XXXX="" XXXXXXX="" fail,="" saturated="" XXXXXXXX,="" XXXXX="" recent="" XXXXX="" competitive="" XXXXXXX="" as="" starz,="" hulu=""></span></p> <p>XXX XXXXXXXXX strategy XXXXXXX in Disney’s XXXXXXXXX streaming services XX one of diversification. Disney clearly XXXXX XX XXXXXX XXXX the XXXXXXXXX XXXXXXXX XXXXXX in order XX XXXX XX the XXXXXXXXX player in a highly profitable XXXXXX, Netflix. XXX XXXXXXXX XX XXXX a strategy are the XXXXXXXXXX market XXXXXXXXX in XXX XXXXXXXXX services market, alongside XXX ability XX gain XXXX XXXXXXXX XXXX XXX XXXXXXX to manage a platform XXXXXXXXX like XXXXXXX XXX charge XXX licenses for other content XXXXXXXXX. XXX risks of XXXX a XXXXXXXX XXX XXX lack XX competencies which will make XXXX a XXXXXXX XXXX, and XXX XXXXXX saturated market for streaming XXXXXXXX, given XXX XXXXXX entry of XXXXX highly XXXXXXXXXXX XXXXXXX XXXX XX Starz, Hulu and Netflix.<br></p> <p><span XXXXX="s1"></span></p>">
