REFLECTION PAPER 2 CLASS N°78 GROUP 8 MARKETING MANAGEMENT MKGM31129 TRIMESTER 1, 2021 Ashandeep SINGH / B00779516 Word Count: 3286 A.S 1 In the future, I aspire to be an entrepreneur. One of the greatest things that intrigues me is how some companies have diversified into multiple industries which provide them with huge benefits in terms of technical or marketing synergies and added appeal to the customers. I aspire to start a company which could later reap the benefits in the same way. One of the companies which I admire the most for this thing is Disney. Their journey starts by creating content, a story, a figure with whom the mass can relate to, and then churn out products around that story. The concept of “Content Marketing” in reverse is highlighted in the article by Forbes “Disney Proves That Profitable Marketing Is About Brand Stories”. But the story does not end here, but merely begins. Disney has proven itself to be a master of Related Diversification. It expanded its core animation business into theme parks, live entertainment, cruise lines, resorts, planned residential communities, TV broadcasting, and retailing by buying or developing the strategic assets it needed along the way. For example, Disney’s cross-promotional relationships with McDonald’s and Mattel gave it an edge in retailing, and its close working relationship with the Florida state government gave the company the expertise it needed in the theme park business. When looked at the broader picture, all these businesses revolve around the core offering of Disney, the characters, and their stories. Disney has helped people merge into groups and clans, who identify as fans and get excited on the thought of reliving their childhood memories. The process starts from making a story either with an existing character or a new character. Raw materials from the films are fed directly to Disney's publications, which in turn do direct advertising for Disney's movies and theme parks. Meanwhile, the parks provided a sales outlet for Disney merchandise. While the strategy has probably evolved over the years, the philosophy seems consistent with the company's operations today. Each of Disney's extensions work together as a whole, is fuelled by the original content from Disney movies. A.S 2 The success of Disney proves that Related Diversification can help a company build a robust business model in which each component behaves as a support system as well as a potential marketing opportunity for other businesses. In terms of finance, financial diversification is also achieved. It could be easily observed in the pandemic time when Disney theme parks were not able to operate, but at the same time, the movies and online streaming business was booming. In the years to come, when I will eventually start up my own company, I will always keep in mind these benefits and it would always be my top priority to harness the power of relative diversification and synergies. A.S 3 References Burns, W. (2015, June 15). Disney proves that profitable marketing is about brand stories. Forbes. Retrieved November 27, 2021, from https://www.forbes.com/sites/willburns/2015/06/09/disney-proves-that-profitablemarketing-is-about-brand-stories/?sh=26386633227b. To diversify or not to diversify. Harvard Business Review. (2014, August 1). Retrieved November 27, 2021, from https://hbr.org/1997/11/to-diversify-or-not-to-diversify. Benna, S. (2015, July 17). This 1957 drawing reveals the brilliant strategy behind Disney's lasting success. Business Insider. Retrieved November 27, 2021, from https://www.businessinsider.com/1957-drawing-walt-disney-brilliant-strategy-20157?IR=T. The Economist Newspaper. (n.d.). Disney's world. The Economist. Retrieved November 27, 2021, from https://www.economist.com/graphic-detail/2015/12/16/disneys-world. A.S 4
