Formulate & explain the BCG matrix for Walt Disney SBU's
The Walt Disney Company founded by Walt and Roy Disney in 1923 is today a highly diversified company with many Strategic Business Units (SBU’s) , namely: theme parks and resorts, studio entertainment, consumer products, media network and internet and media marketing.
The Walt Disney Company founded by Walt and Roy Disney in 1923 is today a highly diversified company with many Strategic Business Units (SBU’s) , namely: theme parks and resorts, studio entertainment, consumer products, media network and internet and media marketing.
BCG matrix for
Disney’s SBU’s:
Cash cow
·
Theme parks
|
Dogs
·
Consumer products
|
Stars
·
Studio
·
Media
|
Question mark
·
Internet
|
Low
Growth
High
High
Market share Low
Ø Theme parks:
Disney’s theme parks are considered to be cash cows with a large market share
but low market growth rate. The maximum revenue of the company comes from the
park. The company earned 6803 million in 200, but its market growth is low.
Ø Studio:
Disney’s studio can be placed both in cash cow and stars, however shall be more
in the stars. With a high market share and high growth, Studio still generates good
revenue, despite being Disney’s first company due to its feature animation and
motion picture, home video, television and cable production, and stage plays.
But market growth is slowly moving towards the lower end.
Ø Media:
media network will also be a star for the company as its growth in income
increased with the acquisition of ABC television, TV and radio stations and in
cable network such as ESPN, Disney channels. It had a high market share with a growth
of 21% from 7970 million in 1999 to 9651 million in revenue in the year 2000.
Ø Consumer products:
these mainly come under the category of dogs as the business growth and the
market share are low.
Ø Internet:
Internet can be described as question mark for the company. Internet has a high
market growth. Disney has just entered in the market in 1996 and does not cover
a large market share. Thus, adding up to this division in the grid. Also,
Disney can any time exit the market as there are almost nil capital expenditures.
Contributed by:-
Surbhi Sondhi
Section A
Strategic Management
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