The Walt Disney Company
The Entertainment King
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I. Executive Summary
After analyzing the Walt Disney case, we found that the root issues include the need to increase revenue to reach the 20% growth target set by upper management and to expand into new markets and/or industries. We used a Porter’s Five Forces analysis to develop our alternatives (Please See Exhibit A for further information). The alternatives that we proposed were to expand globally and enter the Internet and cable distribution industry. We analyzed these alternatives against a set of selected criteria including: the time to implement, how the alternatives fit with Disney’s corporate culture and corporate synergy, if the alternative would provide a competitive advantage, how costly the implementation would be for Disney, and the revenue potential for the alternative. Upon the completion of our analysis, we recommend that Disney should expand globally in order to capitalize on unrealized markets in order to alleviate its root issues.
II. Root Issues
The two root issues for Disney are:
• To increase revenue to reach the 20% growth target set by upper management
• To expand into new markets and/or industries
III. Alternatives
We proposed two alternatives that address Disney’s root issues. Both of these alternatives are possible solutions to the root issues that we proposed. The alternatives are:
• Expand globally
• Enter the ...