Walt Disney Company has been the monarch of theme parks for decades, so it should not
have been surprising when Disney decided to broaden its vision of providing exceptional
entertainment experience by branching into media networks, studio entertainment, consumer
products, cruise lines, and resorts arenas. Disney’s divisions --- media networks, studio
entertainment, and theme parks and resorts --- are among the leaders in their respective
industries. So who are the companies that are competing for market share in each of Disney’s
divisions and how has Disney maintained its competitive advantage?
Media Networks Division
Disney has grown to be one of the world’s largest media and entertainment corporation
since its founding as an animation studio by brothers Walt and Roy Disney in 1923. Disney
owns the ABC television network, with nearly 200 affiliated stations reaching nearly 100% of all
U.S. television market, as well as dozens of niche cable networks. The popular Disney Channel
has a large audience of young children viewers. Eighty percent of ESPN is also controlled by
Disney. A few of largest media conglomerates competing with Disney for more media market
share are:

Columbia Broadcasting System (CBS) is known for FLIX On Demand, SHOWTIME,
THE CW, CBS SPORTS, and Smithsonian Channel. CBS currently reaches
approximately 103 million homes in the country.

News Corporation is the largest media company in the world by market capitalization,
$38 billion, (Alex, 2008). The media empire has the conservative news channel Fox, but
it also includes Asia’s Star TV Network, the National Geographic Channel, and TV
Guide Network to its dynasty.

Time Warner is a large media and entertainment company. The popular CNN, HBO,
Time Inc, and Warner Brothers are just a few names under Time Warner’s umbrella.
Figure 1- Chart of Disney 2007 Revenue by Business Segment
Source: http://www.wikinvest.com/stock/Walt_Disney_Company_(DIS)
Figure 2 – Chart of media competitors by line of business.
Source: http://www.wikinvest.com/stock/Walt_Disney_Company_(DIS)
Studio Entertainment Division
In 1938 Snow White and the Seven Dwarfs was the first full-length animated feature in
English and Technicolor. Snow White was and still is a classic to this day. Disney has had its
up and downs in the filming industry, but they have continued to maintain a strong presence. In
an effort to adapt to the decline in movie attendance Disney has revamped the consumer movie
experience by providing filming shows in I-MAX and 3-D. News Corporation, Time-Warner,
and Viacom are top competitors of Disney in the film division. All of these companies, Disney
included, are facing the same dilemma: a strong decline in consumer cinema viewing. The plan
for all of these companies going forward is to focus more on new technologies like I-MAX and
3-D and high-margin DVD’s.
Theme Parks and Resorts
In 1992 according to Thomas R. Elrod, President of Marketing and Entertainment at Walt
Disney Attractions, Disney’s major competition was not other theme parks and resorts, but such
trips as ski vacations, cruises, Caribbean trips, and European vacations (Crain, 1992, p. 14).
Disney’s parks and resorts division has a strong presence in here in American, Asian, and
European markets. Currently, there are no plans for another American theme park. International
expansion is one the company’s three strategic priorities. Disney’s parks and resorts division top
competitors are: SeaWorld Parks & Entertainment, Six Flags, Inc, and Universal Parks &
Resorts. These companies over the recent years have done expansions by offering more
entertainment, newer trill and family rides. Legoland of Florida is currently building a Legoland
interactive theme park due to open fall 2011. It will be the largest Legoland to ever open.
Disney has maintained its competitive advantage by staying true to family films and TV
shows and creating theme parks dedicated to bringing families together for shared experiences.
According to a study done by Pine and Gilmore (2008), “the company made strategic
acquisitions and strategic alliances that fit solidly in what we call its execution zone, the set of
decisions and actions that a company can make and still be perceived as true to self” (p. 35).
Disney has made business decisions that moved it outside of its tradition of family, characterdriven experiences. For example, The Walt Disney Company bought the Miramax movie studio
in 1993, known for making films rated R and even NC-17. Summer of 2010 Disney sold
Miramax to Filmyard Holdings. The current CEO’s, Robert Iger, main goal is to restore the
authenticity of Disney founded by its founder. Finally, Disney is redefining its Corporate Social
Responsibility by focusing more on eco friendly television commercials that will air and focuses
on empowering kids and teens to join together to make a difference. Other programs by Disney
Corporation include recycling and waste reduction projects.
Reference Page
Alex, (2008, July 7). Who Owns What on Television?
Retrieved from http://www.neatorama.com/2008/07/07/who-owns-what-on-television/
Crain, Rance. (1992, November 23). Marketing the Disney Empire. Advertising Age, 48, 14.
Pine II, B. J. & Gilmore, J.H. (2008). The Eight Principles of Strategic Authenticity. Strategy &
Leadership, 36(3), 35-40.