Jie Liang Hang Patrick Kwon Johnson Lightfoote Daniel Moon Jeff Wong Overview DIMG Video Game Value Chain Porter’s 5 Forces SWOT Analysis Publishing and Development Brand and Marketing Recommendations Disney Interactive Media Disney Interactive Studios Disney Online Studios Disney Mobile Disney Interactive Media Group (DIMG) 2008 Video Game Value Chain Designers and Developers Publisher Distributor Retailer Consumer Porter’s 5 Forces Threat of New Entrants (High) Bargaining Power of Suppliers (MediumHigh) Competitors (High) Threat of Substitutes (High) Bargaining Power of Buyers (High) SWOT Analysis Strengths -Publishing and Development -Brand Image -Disney Marketing Strategy Weaknesses -Disney’s Wholesome Image -Current Use of Video Games as Marketing Tool Threats Opportunities -Recent M&A -Talent Pool -Recent Trends Towards Social Gaming and Cloud Computing -Increase in Small Independent Developers Publishing and Development Reduced Conflict Reduced Costs Cost Breakdown of $60 Game VAT 19% Publisher 30% Retailer Margin 25% Marketing 4% Licensing 20% Distribution/Co st of Goods 2% Brand Image and Marketing Strategy One of the most recognizable brands in the world Recognizable characters Large customer base Large distribution network Profit Multiplier Recommendations Encourage Creativity Reverse Marketing Flow Mergers, Acquisitions, and Partnerships Staple Video Game Questions?