When you hear the name Walt Disney, you automatically think back when you were a kid and how eager you were to get home, so you could watch The Disney channel. Young people are being entertained by the Disney channel and older people affiliate it with their childhood. Regardless of who you are and what age you are, Walt Disney has made an impact on your life. But what If I tell you that Disney is not only Disney world and the Disney channel. In fact, the company has expanding so much that we dont even recognize the Movies, tv shows and other things we watch today are owned by Walt Disney. The objective of this research paper is to give the reader insight on Walt Disney Inc conglomerates, a corporation that is made up of several different, seemingly unrelated businesses. (INVESTOPEDIA) and how they interact, and profit from one another. Lets get started shall we!
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The Walt Disney Conglomerate
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The Walt Disney Company was founded in 1923 after founder, Walt Disney had went bankrupt with his cartoon company Laugh-O-Gram in 1922. In October of 1923, Walt Disney had signed a contract with M.J. Winkler to start a series of Alice Comedies under the company known as The Disney Brothers Studio which was later renamed The Walt Disney Studio. From here on, Walt Disney would produce products in a wide range of categories becoming the third largest conglomerate and setting the standard for cartoons and childrens culture.
Currently, Disneys headquarters is in Burback California USA and is overseen by Robert A. Iger who has become the chairman and Chief Executive Officer of The Walt Disney Company since 2005. As Chairman and CEO, Mr. Iger has adopted one of the worlds largest media companies and some of the most respected and beloved brands around the globe. As Disney CEO and Chairman, Igers strategic vision for The Walt Disney Company focuses on three fundamental pillars: generating the best creative content possible; fostering innovation and utilizing the latest technology; and expanding into new markets around the world and according to WSJ, there is a massive 195,000 employees that work within 45 countries such as, India, Japan, The Bahamas, Hong Kong and France to help make his visions come true.
Walt Disney has had a major success within the years by acquiring and branching into different subsidiaries which has helped the incorporation revenue billionaires of dollars and making Disney legendary. One subsidiary is the studios acquired under chairman and CEO Mr. Iges. Mr. Iges followed his dream and has added to Disneys riches by acquiring three studios; Pixar Animation Studios, Marvel Studios, and Lucas film under Walt Disney studio umbrella. According to THE WSJ, Since Acquiring these studios, the companys animation studios has produced 56 animated feature films so far and together have earned 13 Academy Awards, nine Golden Globe Awards, and 11 Grammy Awards. Eight of these films won the Academy Award for Best Animated Feature. Amongst Marvel and Lucas film studio, these two has created hits such as the Avengers franchise, Guardian of the Galaxies and the Star Wars and the Indiana Jones franchise.
Along with Disneys four studios, Disney also owns a consumer products and interactive media section, which includes the companys retail and online sites. Providing a category of products that range from apparel, toys, and books. Today You can find over 400 disney store locations worldwide. According to the Official Walt Disney website, The consumers products and interactive operates in three business units: Licensing, Publishing, and the Disney Store. The companys Licensing business unit is engaged in Walt Disneys character licensing, such as Disney Media, Disney and Pixar Animation Studios, Disney Princess and Disney Fairies, and Lucasfilm and Marvel. Within its Publishing business unit Disney also publishes childrens books, magazines, and digital products.
Another subsidiary is Walt Disney Parks and Resorts. Aside from its animated movies, Disneys Walt Disney Parks and Resorts are the corporations most well-known attractions. The first Disneyland Park opened in 1955 in Los Angeles metro area. Having the first park being such a success, Disney opened a second theme park two years later located in Bay Lake, Florida near Orlando. Walt Disney did not limit his ideas to parks, included with Disney theme parks came resorts operated across the global, Disney cruise line and vacations. Walt Disney Parks and Resorts did not limit to just the U.S. The corporation operates the successful Disneyland Paris, which opened in 1992, as well as Hong Kong Disneyland Resort, which opened its doors in 2005. Today Disney owns 11 theme parks globally.
In addition to the popular film and theme parks. Disney owns and operates many television channels that produce popular TV series. Its biggest subsidiary under Disney Media Networks is ABC, which produces hit network shows such as Scandal and How to Get Away with Murder and its flagship evening news program ABC World News Tonight. Disney also owns part of Hulu, an Internet streaming video service, along with 21 st Century Fox and Comcast, the worlds biggest media company to date. Disney also operates A&E Networks, in a joint venture with Hearst Corporation. Among its popular television channels include The History Channel and A&E, home to Storage Wars, The First 48, Duck Dynasty, and the scripted series which is one of my favorite shows, Bates Motel. Disney also owns, of course, The Disney Channel and ESPN.
So, with all of these subsidiaries what does this mean for the company. Cross promotion! As a conglomerate it has control over everything that is produce. Movies are created under the Disney studio umbrella, toys are made and sold within Disney stores and advertisements are advertised through its own networks. For example, Take Toy Story 3. After a global marketing campaign, the movie opened June 18, earning $1 billion at the box office, more than any other film this year and any other animated film in history. Disneys had sold action figures, apparel, books, magazines, collectibles, and more, all featuring the movies popular characters. By August, the advertisement crossed over to Disneyland Paris. Toy Story Playland was added to Paris Disneyland and opened the same summer the hit movie was released. The Disneys interactive division generated videogames for Nintendo, Xbox, PlayStation, and PC. It also produced apps for the iPad and mobile phones. And Whenever Disney needs to generate additional buzz on TV, it can do so through its network channel, ABC, or cable channels such as the Disney Channel. As well as advertise around their several theme parks and resorts. Theres also the Disney Channel, which provided a platform for cross-promotion on cable, and the Disney Stores, which offer international merchandising options making Disney a well-built global licensing operation. However, there is cons to this on a social level.
With Walt Disney being the largest media, shows how detrimental media conglomerate can be detrimental to society. For example, lets say the Walt Disney company wanted to show support for Trump during the 2016 presidential election, It could have used several of its subsidiaries within its media sector to help promote the Republican party. With its huge presences within the media it can promote issues people are against and mainly control the mind of kids who are very impressionable. After all Disney does make its products geared toward children.
Disneys exceptional entertainment, widely diverse content, and unique skill in managing businesses in an integrated manner have led to strong results. During Mr. Igers time as Chairman and CEO, The Walt Disney Company has been recognized as one of the Most Reputable Companies in both America and the world by Forbes magazine (2006-2017); one of the Worlds Most Admired Companies by Fortune magazine (2009-2018); one of the Worlds Most Respected Companies by Barrons (2009-2016); one of the Best Places to Launch a Career by BusinessWeek magazine (2006-2010); and as Company of the Year by Yahoo Finance (2013).
The Walt Disney Company and the diverse operations in different aspects of the entertainment industry such as Media networks, parks and resorts, studio entertainment, consumer products and interactive media to name a few has had a major impact on peoples lives dominating in any category they venture in. Today Disney Incorporation is worth The Walt Disney Company has grown rapidly over time and is currently worth $168 Billion dollars(Gobankingrate) becoming one of the leading companies in the entertainment industry and continues to excel with no signs of slowing down. Disneyland will never be completed. It will continue to grow as long as there is imagination left in the world.
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The Walt Disney Conglomerate. (2019, Jul 09).
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