Wlat Disney- Strategic Management Term Paper Example | Topics and Well Written Essays - 1500 words

Wlat Disney- Strategic Management - Term Paper Example The founder of the company, Walt Disney soon realised that relying on the studio alone will be risky; hence after understanding the changing customer requirements he entered the movie making business. These movies were great hits among children as well as adults. Soon the company entered the business of theme parks where the visitors are entitled to avail entertainment for 24*7 hours. This was a unique idea because here the visitors get an opportunity to come in direct contact with the cartoon characters. They can find the cartoons to be moving, dancing and plying with them. These parks were great hit among the children and even their parents used to take active participation in it. Both the above mentioned businesses are example of horizontal diversification of the main theme of Disney, i.e. cartoon characters. Another major move of the company was to enter the retail business where the children were the target customer of the company. Products like books and magazines were sold which were manufactured in Disney press. Some special toys were also designed for the visitors. The company entered horizontal diversification to gain synergy. Almost all the businesses were targeted towards a common customer base, i.e. children. The expertise of the company helped to create innovative and attractive cartoon characters which were used in almost all the business units. For example, the movies were used to make a cartoon characters familiar to the target audience. Later on, these characters were used to attract customers to visit the theme parks. Finally, popularity of the cartoon characters was used to sell different toys and books published by Disney press. The company also developed vertical integration with internet and TV for further expansion of business and development of the market image. Apart from synergy, there were certain other factors that assisted the company to succeed in the target marks.