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1、Analysis Disney CompanyThe Walt Disney Company is an American diversified mass media corporation with touching every aspect of the entertainment industry, including publishing, television networks, educational materials, cable channels and Internet websites (Smith, Clark, 1999). And it also owns the
2、 theme parks all around the world. Disney Company became a “worlds best-known company” which was based on a lot of cartoon characters. Today it is one of the largest media corporations in the world (Siklos, 2009). Development of DisneyDisney Company was formed on 16 October 1923, by Walt Disney and
3、his brother Roy Disney in Los Angeles, which was named the Walt Disney Studio. “It all started with a mouse” (Wasko, p.9, 2013). Before the mouse appeared in the film, Walt did two cartoon series which was called Oswald the Lucky Rabbit and Alice Comedies. However, because of Oswald got involved the
4、 problem of copyright, Walt needed to search for a new character. In 1928, the idea of the mouse which was named Mickey came into his mind (Wasko, 2013). And then the great success of Mickey made the company rapidly growing up in Hollywood.During the World War 2, Disney Company has been taken over b
5、y US Army troops a lot. However, this situation did not block the development of Disney, at that time, Donald Duck as one of the famous animal characters appeared in short film.After the war, the way that Disney Company developed their films were becoming diversification. Walt started producing tele
6、vision programming with ABC and NBC, which made their characters to show themselves on television. This successful movement let Disney Company goes further a theme park. The first Disneyland was opened on 1955 (Grover, 1997). Due to these great successful strategies, Disney Company finally becomes a
7、 major independent film company in Hollywood (Wasko, 2013).How does The Disney Company grow up?The Disney Company uses diversification strategies to expand its market, which make them to achieve media monopoly and create enormous revenue. Those diversification strategies can be separated into two as
8、pects, horizontal integration and vertical integration. 1. Horizontal integrationSince 1993, Disney Company never stopped their footsteps of acquisitions. Disney Company has acquired Miramax Films, Pixar, Marvel Entertainment and Lucas film. “Horizontal integration enables a company to increase mark
9、et power by cross-promoting or cross-selling a show” (McChesney, p.22, 1999). In 1993, Disney Company acquired Miramax which was a leader in independent film distribution (Wasko, 2013). This move made Disney Company had more market share for adult not only in children market. Through a series of acq
10、uisitions, Disney Company obtained more opportunities to distribute different kinds of films, which created new contents to Disney Company.2. Vertical integrationIn 1995, the first Disneyland opened in California. And now, Disney Company already has 7 theme parks around the world which bring Disney
11、Company enormous income. According to the Disney annual report in 2014, Disney parks and resorts contributed $15, profits in 2014.In 1996, Disney Company officially acquired ABC, with this merger, “Disney could acquire the entire ABC television network, key ABC affiliates, ABC radio networks, publis
12、hing enterprises, ESPN, A&E and Lifetime” (Smith, Clark, p.171, 1999). This decision combined Disney animated film, television program and radio programming together effectively. It made Disney Company occupied a dominant position in the media industry (Wasko, 2013). And in 2001, the Fox Family Worl
13、dwide was sold to Disney by News Corp. which known as ABC Family (Columbia Journalism Review). 3. DiversificationDisney Company added diversification activities to expand areas of Disneys operation since 1984 (Wasko, 2013). Due to the acquisition, Disney Company had opportunities to take benefits of
14、 technologies from Miramax Films, Pixar and others company have been acquiredAccording to the annual report of Disney Company in 2014, “The Walt Disney Company, together with its subsidiaries, is a diversified worldwide entertainment company with operations in five business segments: Media Networks,
15、 Parks and Resorts, Studio Entertainment, Consumer Products and Interactive.” Acquisitions and cooperation help Disney to approach new aspect, which lead Disney to permeate in every aspects of life.How wide ranging are its present operations?Disneys industry distributes in various fields, which incl
16、ude media networks, park and resorts, studio entertainment, consumer products, interactive. Figure 1: from Disney annual report 2014Figure 2: the percetage of revenue of Disney Comany, from Disney annual report 2014According to these two graph, the revenue of media network and parks and resorts are most important contributions of Disney Company, which occupy more than half of revenue, almost 74%. And this was due to high p
