IF YOU WANT TO GO WHERE YOU NEED TO BE

Transcript:IF YOU WANT TO GO WHERE YOU NEED TO BE:
IF YOU WANT TO GO WHERE YOU NEED TO BE YOU CANNOT STAY THE WAY YOU ARE WALT DISNEY “Blowing Up The Castle?” Presented to: Robert A. Iger, Chairman and CEO at The Walt Disney Company Presented by: Daniela, Minghao, Victor, Vishnu 11 January 2019 Agenda Page 4 1 Problem 2 Recommendations 3 Internal & External Analysis 4 Strategic Alternatives 5 Implementation 6 Financial Analysis 7 Contingency Plan 8 Conclusion Problem: Walt Disney is facing three key challenges that need to be overcome to compete in an increasingly disrupted market Page 5 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion Post-Merger Integration Disruption from OTT How can you make best use of the Fox acquisition? How can you disrupt your business model while mitigating for cannibalization? How can you stay competitive? Cannibalization Threat Recommendation: Three strategies will enable Walt Disney to overcome the identified challenges and prepare for the future Page 6 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion Integration Strategy Customer Segment Strategy Online-Offline (O2O) Strategy Post-Merger Integration Cannibalization Threat Disruption from OTT Organizational Assets Customer Acquisition Customer Experience Internal Analysis: Walt Disney exhibits extensive experience and strong core competencies in the media industry Page 7 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion Strengths Weaknesses Strong reputation and brand Large volume of content (Pixar, Disney, ESPN Sports) Family-focused image Multiple streams of revenues (e.g. theme parks, merchandise) M&A experience Revenues largely from traditional cable TV (40%) Traditional media Large integration challenge ahead Lack of technology focus in new media (e.g. streaming, analytics) External Analysis: Walt Disney exhibits extensive experience and strong core competencies in the media industry Page 8 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion Opportunities Threats Technological advancements improving customer experience Exponential growth in streaming services Increased (mobile) connectivity Globalization Disintermediation Strong competition incl. new entrants (e.g. Netflix, Amazon) Rapid decrease in subscribers to cable TV Customers looking for “long-tail’ offerings Competitor Analysis: The following positioning map illustrates the competitive landscape Walt Disney competes in Page 9 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion Large Content Volume Low Content Volume Standalone Services Diversified Services Walt Disney Amazon Prime YouTube Premium Netflix HBO Hulu Strategic Alternatives: Six key strategies have been considered and analyzed to identify the best-fit recommendations Page 10 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies Conclusion Chosen Strategies Implementation (1/3): Integration Strategy Page 11 Problem Recommendation Analysis Alternatives Implementation Financials Contingencies