The House of Mouse Values Characters and Stories

27Sep11

Walt Disney Studios over the past few decades has been acquiring many varying companies into its umbrella to capture not only niche markets but to build a diversity of market content that allows itself the freedom to invest in content that it could not under the family image of the mother company.  Examples of these companies under that umbrella include: Miramax, Marvel, The Jim Hensen Compnay, and Pixar to name a few.  I believe that Disney is utilizing at least two different types of strategic management: Niche Theory and Resource-Based View.

I feel that they are utilizing the Niche Theory and this is exemplified by the fact that they are buying up Niche companies in the audience market like Pixar and Marvel because, “Disney’s focus coalesced around branded franchises…1 as these companies bring Disney an established niche audience.  I also feel that Disney is utilizing the Resource-Based View of strategic management because they value each of these companies as, “a collection of unique resources…” that have, “assets and skills that are unique to their organizations and cannot be imitated…”2.

“Unquestionably, Disney has used…”Pixar and Marvel, “…to acquire characters and stories.”1 Disney is also using Pixar and Marvel, “to expand the machinery of merchandising, distribution, cable networks, Internet media and other platforms that generate money from its brands.” If we have a hit that is a Disney hit, a Pixar hit, a Marvel hit, those things can live in theme parks,” Mayer says. “They can have substantial Internet businesses. They can go into publishing, consumer products, Disney Channel and our other TV assets.””1

Clearly, Disney is a successful media business model and their implementation of these management theories is only helping the company broaden its resources and make their holdings more robust.

Russell McGee

1C. Nolter, Characters and stories, WWW Document, http://www.thedeal.com/magazine/ID/041317/features/characters-and-stories.php

2M. Deuze, Managing MediaWork, (SAGE Publications, Inc., Thousand Oaks, CA, 2011), pp. 15.

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