Walt Disney Value Chain Analysis

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Disney is a world-famous company. Its full name is The Walt Disney Company which is named after Walt Disney who founded the company and created “Mickey Mouse”. Walt Disney was a well-known cartoon maker and a successful entrepreneur. He established Disneyland in 1955. Disney is a large diversified multinational mass media and entertainment conglomerate headquartered in Burbank, the US. Disney gradually improved its brand image and culture by relying on Mickey Mouse in the 1930s to 1940s, and began producing live-action films in the 1940s. It acquired Miramax Films (which was well-known for distributing independent films) and Pixar Animation Studios, a 3D cartoon studio successively, which enabled Disney to become a globally leading film company. …show more content…
It promotes its brand in its every animated film released, every derivative sold, every new playing channel and sales channel as well as every tourist entering into Disneyland. By virtue of these brand promotions, Disney can increase brand loyalty without any cost while gaining more profits. Disney Group’s value chain mainly consists of four parts: film and television, media network, Disneyland and derivatives. Disney mainly relies on derivatives and Disneyland which account for over 80% in Disney’s business. When Disney releases a well-made animated film, it will publicize it vigorously to seek box office revenue. It gains the first round of income by issuing copies and videotapes. Then it will develop subsequent products. Disneyland comes first. When it releases an animated film, a new character will appear in Disneyland, so that tourists can visit it happily amid the atmosphere jointly created by film and Disneyland. Disney will gain the second round of income in this way. The next is brand products. Disney opens numerous Disney stores in the US and other countries in the world. It will gain the third round of income by selling brand products. This is not enough. Disney also keeps on acquiring TV channels. It has cartoon film channel, home entertainment channel and news channel by far. As for Disney’s brand operation, first of all, brand operation refers to the condition that an enterprise makes use of brand marketing and brand promotion according to market demand and business philosophy in order to maximize its profits. Disneyland has gained considerable profits by implementing brand operating strategy. Firstly, through brand operation, Disney wins worldwide loyal customers, and forms differentiated competitive advantages. The brand of Disneyland means joy and happiness to people. It has built a sound image for enterprise and product, enhanced consumers’ cognition to Disneyland, and won good reputation

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