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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 was incorporated XXXX XXX Disneyland XXXXX XXXXX, XXXX innovative XXXXX XXX XXXXXXXXXXX XXXXX park zones XXXX as ‘Star Wars: Galaxy’s Edge’. In addition, XXXXXX XXX able XX successfully XXXXX new XXXXXXXXXXXX in areas such XX IP XXXXXXXXXX and XXXXXXX creation. (XXXXX, XXXX)
2. Why do you think Disney's XXXXXXXXXXXX XX XXXXX, XXXXXX, and XXXXXXXXX XXXX so successful, while other media XXXXXXXXXXX XXXX as XXXX's XXXXXXXXXXX of XXXXXXXX Pictures XXX News XXXX.'s XXXXXXXXXXX XX Myspace XXXX XXXX less successful?
Disney’s XXXXXXXXXXXX XX Pixar, Marvel XXX Lucasfilm XXXX highly successful XXXXXXXX to Sony’s acquisition XX XXXXXXXX XXXXXXXX and News Corp’s XXXXXXXXXXX of Myspace, XXXXXXX XX XXXXXX’s accurate XXXXXX valuation XX XXXXX XXXXXXXXXX, XXX XXXXXX synergies with XXXXXX’s XXXXXXXX properties, XXX the ability to tap XX XXXXXX’s existing capabilities. Foremost, Disney cleverly XXXXXXXX an XXXXXXXX XXXXXX valuation XX the XXXXXXXX XXXXXXXXXX, as they XXXX XXXXXXXXXXX at XXX time of XXXXXXXXXXX, and shrewdly XXXXXXXX that XXXX had XXXXXX long-XXXX growth XXXXXXXXX. Properties XXXX Lucasfilm, Marvel XXX Makerstudios would XX XXX o XXXXXXX multi-billion XXXXXX XXXXXXXXXX for Disney. XXXX XXX in contrast XX News XXXX, XXXXX took XX XXX XXXXXXX XXXXXXX with XXXXXX XXXXXX, or XXXX, XXXXX acquired redundant production systems XXXX taking XXXX XXXXXXXX XXXXXXXX, which Sony already possessed. Secondly, XXXXXX’s XXXXXXXXXXXX XXXXXXXXX because they XXX XXXXXX synergies with Disney’s XXXXXXXX properties, and allowed XXXXXX to build a XXXXXX friendly XXXXXXXXXXXXX XXXXXX. (XXXXX, XXXX) Thirdly, the XXXXXXXXXXXX had XXX ability XX XXX XX Disney’s existing capabilities, in areas XXXX as XXXXXXXXXXXX, XXXXXXXXXXX, XXXXXXXX, XXXXXXXXX and XXXXX, to drive further XXXXXX XXX XXXXXXXXX, XXXXXX Sony, XXXXX XXXXXXXXXX XXXXXXXX XXXXXXXX’ XXXXXXXXXXXX, or XXXX XXXX, XXXXX XXX not XXXX how to successfully leverage XXXXXXX’s social XXXXXXXX to XXXXX further XXXX distribution. Finally, XXXXXX’s XXXXXXXXXXX allowed the creation of original XXXXXXX XXXX XXX XXXXXXXXX to XXXX-XXXX.
X. XX you think XXXXXXXX XX billion-dollar franchises has XXXX a good XXXXXXXXX strategy for XXXXXX? XXXX are pros and cons XX XXXX strategy?
Focusing on XXXXXXX-dollar franchises XXX been an XXXXXXXXX XXXXXXXXX XXXXXXXX XX it allows XXXXXX to XXXXX XXXXXXXX brands XXXX XXXXXXXXXX XXXXXX XXXXXXXXX, XXX XX exploit synergies across its properties in XXXXX of audiences XXX themes. For XXXXXXX, Star Wars XXX XXXXXX XXXX are often the same XXXXXXXXXXX, XXXXX allows XXXXXX to XXXXX-sell XXXXXX XXXX XXXXXXX types. XXXX XXXXXXX the XXXXXXXXXXX for XXXXXXXXXX market growth. Furthermore, these XXXXXXXXXX allow for XXXX-limitless market XXXXXXXXX XXXXXXXXX.
XXXXXXX, Disney XXXXX XXXXXXX disadvantages in pursuing XXXXXXX dollar franchises exclusively. Foremost, XXX XXXXXXXXXX XX handicapped, XX XXXX strategy chooses the largest brand titans XX XXX expense of disruptive new XXXXXXXX. Secondly, XXXXXX XXX XXXXXX XXXX audience XXXXXXX, XX the moribund response to XXXX of XXX Marvel TV XXXXX XXXXXXXXXXX. (XXXXXXXX, XXXX) XXXXXXX, Disney may be XXXXXX to XXXXXXXXX XXXXXXXXXXX, and in so XXXXX, XXX XXXXXX overreliant on a few flagship brands and handicap XXX growth as a result. (Paque, XXXX)
X. XXXXX XXX build-XXXXXX-or-XXX XXXXXXXXX, XX you XXXXX XXXXXX should pursue alternatives to XXXXXXXXXXXX? XXX or why XXX?
XXXXXX XXXXXX definitely XXXXXX alternatives to XXXXXXXXXXXX, XXX seek to build more XXXXXXXXXX in-XXXXX XXXXXX than borrowing or buying. This XX XXXXXXX a XXXXX-XXXXX XXXXXXXX XXXXXX Disney XX have a sustainable XXXXXXXX XXXXXXXX and development arm to continuously XXXXXXX XXX consumer XXXXXXXX and XXXXXXXXXXXXX properties, XXXXX avoiding the XXXXXXXXXXX from a XXX-XXXXX strategy, or the XXXXXXXXX XXX XXXXXXXXXXX XXXX XXXXXXXX in a borrow-XXXXX strategy.
5. Given Disney's focus XX creating and XXXXXXXXXX billion-XXXXXX franchise, some industry XXXXXXXX now XXXX XXXXXX more as a global consumer XXXXXXXX XXXXXXX XXXX XXXX XXXXXX than a media company. Do you agree with this perspective? Why or why not? What XXXXXXXXX XXXXXXXXXXXX would it XXXX XX Disney is XXXXX a global consumer products XXXXXXX rather XXXX a media XXXXXXX.
This XXXXXX XXXXXX XXXX a XXXXXX extent XXXX XXX perspective that Disney XXXXXXXXX a XXXXXX XXXXXXXX products company XXXX XXXX, XXXXXX XXXX a media XXXXXXX. This is because Disney, XX XXXXXXX, is XXX more intent on franchising XXX product XXXXX than developing new XXXXX properties, XXXXX include theme parks, apparel, toys XXX consumer-branded XXXXX. (Wasko, XXXX) XXXXXXXXXXX, Disney XXX shifted its focus XX XXXXXXX XXX-XXXXXXXXXXX competencies XXXX aggressively, such as XXXXXX XXXXX management. XXXXXXX, XXXXXX is XXX more exposed to risks XXXX XXXXX XXXXXXX XXX to XXX XXXXX to XXXXX a XXXXXX consumer products XXXXXXX. This would have XXX XXXXXXXXX strategic XXXXXXXXXXXX XXX Disney. Foremost, Disney would have to consider the additional risks XXXX global XXXXXX XXXXXX and distribution XXXXXXXX. XXXXXXXX, Disney is XXX able XX XXXXXX a core XXXX of XXX business in XXXXXXXX XXXXX, XXXXX XXX XXXX stable XXXX the XXXXXX volatile XXXXX industry. XXXXXXX, Disney will be able to diversify away from its traditional reliance on media properties. (Wasko, XXXX)
6. What XXXX of corporate strategy XX XXXXXXXXX in XXXXXX's XXXXXXXXX streaming XXXXXXXX? What XXX XXX XXXXXXXXX benefits and XXXX of XXXX strategies?
XXXXXX’s corporate strategy is currently one XX XXXXXXXXXXXXXXX XXX product XXXXXXXXX. Disney’s XXXX into XXXXXXXXX XXXXXXXX demonstrates an XXXXXXX XX XXXXXXXXX into XXXXXXXXXX and in-XXXXX XXXXXXXXX production, XXX XX capture a larger XXXX of XXX media value chain XX XXXXXXXXX XXXX XXX incumbent Netflix. The strategy’s XXXXXXXX include XXXXXX potential XXXXXX XXX higher XXXXXXX XXXX a platform-XXXXX XXXXXXXXXXXXX ecosystem. XXX XXXXXXXX’s XXXXX are brand dilution, XXXX competition XXX XXX potential failure XX a XXXXXXXX if it XXXX XXX reach XXXXXXXX mass.
References
Calandro, J. (XXXX). XXXXXX's Marvel acquisition: a XXXXXXXXX XXXXXXXXX XXXXXXXX.XXXXXXXX & Leadership.
Paque, X. (XXXX).XX XXX XXXXXXXXXX XX copyrighted contents the real XXXXX XX The XXXX XXXXXX Company?(XXXXXXXX XXXXXXXXXXXX, XXXXXXXXXX Catholique de Louvain).
XXXXX, X. (2020).XXXXXXXXXXXXX XXXXXX: XXX manufacture XX fantasy. John Wiley & XXXX.
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