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Term Project Chapter 1 Question 1 The main business model of The Walt Disney Company is media networks, parks and experiences, studio entertainment, and consumer products & interactive media. According to their 2020 Annual Report, which would be more reflective of the organization during “normal” operations, the company generated 37% of its revenue from media networks, 31% from parks and experiences, 17% from studio entertainment, and 15% from consumer products & interactive media. As discussed in chapter one, the competitive advantage this diversification and economy of both scope and scale the Walt Disney Company has leads to an increased value creation to share holders as the firm continues to grow and show profit. Looking at the AFI framework on page 22, The walt Disney company does well in its Analysis phase; continually innovating/avoiding stagnation internally while looking outwards at other players in each of their respective industry competitors appropriately, to thus have a response to the ever changing market conditions and demands. Chapter 1 Question 2 The Walt Disney Company's mission statement is "to entertain, inform and inspire people around the globe through the power of unparalleled storytelling, reflecting the iconic brands, creative minds and innovative technologies that make ours the world's premier entertainment company" (The Walt Disney Company, 2020). Although a specific vision statement is not published, its dedication to producing diverse and high-quality content suggests an overarching vision to remain a leader in the global entertainment industry. The company's values, known as the "Disney Compass," provide guidance for employees in their actions and decision-making. These values are optimism, innovation, quality, storytelling, integrity, and embracing change. The Disney Compass emphasizes the importance of creating a sense of community, fostering a spirit of collaboration, and nurturing a culture that prioritizes respect, inclusivity, and diversity (The Walt Disney Company, 2020). On page 16 of the text, the Stakeholder Impact Analysis is described, including the steps in identifying the wants, needs, claims, threats, and responsibilities to the firm’s stakeholders. The Walt Disney Company has done well in response in response to its stakeholders, changing with culture and growing around social trends in order to maintain that “Disney Compass” internally and sustainably in the eyes of its stakeholders. Chapter 2 Question 3 Over the years, The Walt Disney Company has changed its strategy a bunch of times. At first, they were all about making animated movies that everyone would love, like Snow White and the Seven Dwarfs, Fantasia, and Bambi. Then in the 1950s, they started focusing on TV production with shows like Disneyland and The Mickey Mouse Club, so they could reach more people and make more money. In the 1980s, they did something totally new by opening a theme park in Tokyo, which was super successful and led to more parks opening up all over the world. In the 1990s, they went on a shopping spree and bought up other media companies like ABC and ESPN, which helped them control how their content got distributed and reach even more people. Lately, they've been putting a lot of effort into building their own streaming service called Disney+. They're making tons of original content for it and even bought some more entertainment assets from 21st Century Fox to add to their library. Most of these strategic moves were totally on purpose, while others came about because of changes in the market and what people wanted. Given the size of The Walt Disney company, described on page 48 of the textbook, The top-down strategic planning frame work shows the way a firm can plan from their “values on down”, which as written above they managed to do repeated with historical and technological adaption to each media market. To consider this framework in the lens of post WWII, like many US corporations, the Walt Disney Company used their ability to strategically use their wealth of information throughout their value chain to stay both relevant and in a state of growth. Chapter 3.1 Question 4 There are several changes taking place in the macro-environment that could impact The Walt Disney Company's industry. The COVID-19 pandemic has had a significant negative impact on the travel and tourism industry, which includes Disney's theme parks and resorts. This has resulted in decreased revenue and profitability for the company. Additionally, there has been increased scrutiny on the media industry, particularly around issues of diversity and inclusion, which could impact the way that Disney creates and distributes content

in the future. On a positive note, there has been a growing trend towards streaming services and digital content, which Disney has been able to capitalize on with the launch of Disney+. As discussed on chapter 103 of the text, The Walt Disney Company had been negatively affected by industry convergence, with the change in how a huge swath of their market interacts with its media. The advent of the internet disrupted its working model (along with every other traditional media institution), but to the credit of the strategic management at Disney at the turn of the 20 th century, it managed to weather the changing tides to its betterment, even compared to other huge legacy media organizations. Chapter 3.2 Question 5 Applying the five forces model to The Walt Disney Company's industry: threat of new entrants: The entertainment industry has relatively low barriers to entry, which means that new competitors could emerge at any time. However, Disney's strong brand reputation, extensive resources, and large customer base make it difficult for new entrants to gain significant market share. Threat of substitutes: The entertainment industry is highly diverse, with many different types of content available to consumers. This means that there are many substitutes for Disney's offerings, such as other movies, TV shows, and theme parks. However, Disney's strong brand and unique content make it difficult for substitutes to fully replace their offerings. Bargaining power of buyers: Consumers have significant bargaining power in the entertainment industry, as they can choose from a wide variety of content providers. However, Disney's strong brand reputation and high-quality content make it a popular choice for many consumers, giving the company some bargaining power as well. Bargaining power of suppliers: Disney's suppliers, such as actors, writers, and production companies, have some bargaining power as they are essential to creating the content that Disney distributes. However, Disney's extensive resources and reputation as a major player in the industry give them bargaining power as well. Intensity of competitive rivalry: The entertainment industry is highly competitive, with many major players vying for market share. However, Disney's strong brand, extensive resources, and unique content give them a competitive advantage over many of their rivals. Overall, the five forces model suggests that the entertainment industry is highly competitive, but that Disney's strong brand, extensive resources, and unique content give them a competitive advantage over many of their rivals. Looking at page 91 from the text, a graphic of the continuum of of industry competitive structures from perfect competition to a monopoly, Disney benefits from falling on the consolidated side of the spectrum, allowing for it to maintain its brand and stop or hinder new entrants from gaining a foothold in media market. Chapter 4.1 Question 6. The Walt Disney has managed to balance their valuable tangible and intangible resources to an impressive degree. The firm’s main tangible asset are Theme parks and resorts, Walt Disney World Resort, Disneyland Resort, Disneyland Paris, Hong Kong Disneyland Resort, and Shanghai Disney Resort. Similarly, Disney operates a line of cruise ships: the Disney Cruise Line fleet. Following that, the slew of television networks: ABC, ESPN, Disney Channel, and Freeform. From there and continuing to grow comes their in- house studios; Walt Disney Studios, Pixar Animation Studios, Marvel Studios, and Lucasfilm as of writing this with the organization still actively acquiring other firms in the space. Finally retail stores, with “The Disney Store” locations worldwide. Moving to intangible assets, Disney as a brand is one of the most recognizable in the world. Specifically, Disney has extensive intellectual property: Disney's portfolio of characters, movies, and franchises such as Mickey Mouse, Frozen, Star Wars, and Marvel Cinematic Universe. Following that is brand equity: The Walt Disney brand, which is globally recognized and associated with quality family entertainment in cultured throughout the world. It also utilizes licensing agreements: revenue generated from licensing Disney's intellectual property for consumer products, merchandise, and media content. More recently in the digital space, it has created a vast distribution and content partnership network: Agreements with various streaming platforms, cable networks, and broadcasters. Internally, it has great pride in its stakeholder image; with talent from Disney being almost pedigreed: Creative and executive personnel responsible for generating and managing Disney's content and business strategies. Referencing page 139 in the text, Disney has done well to keep its’ competitive advantage through the dynamic capabilities’ perspective, leveraging and modifying its vast resource base in a way that allows it to keep this pace of evolution and adaptation in a market as constantly changing as pop culture is today.

Chapter 4.2 Question 7 7. Based on the VRIO analysis frame work laid out on page 129 of the textbook, several resources help sustain Disney's competitive advantage, such as its intellectual property, brand equity, theme parks, and talented workforce. These resources, combined with the company's strong organization and ability to adapt to changing market conditions, contribute to Disney's continued success and competitive position in the global entertainment market. Value: Disney's intellectual property, brand equity, and diverse business segments create value for customers by offering unique and high-quality entertainment experiences. These assets differentiate Disney from its competitors and allow it to generate revenue from various channels. Rarity: Disney's extensive portfolio of iconic characters and franchises, such as Mickey Mouse, Frozen, Star Wars, and Marvel, is rare and difficult to replicate. Its globally recognized brand and world-class theme parks also contribute to its rarity. Imitability: Disney's combination of creative talent, technological innovation, and strong distribution channels is hard to imitate. Competitors face significant challenges in replicating Disney's success in storytelling, brand recognition, and the ability to leverage its IP across multiple platforms. Organization: Disney is well-organized to exploit its valuable, rare, and hard-to imitate resources. It has a robust corporate structure, with specialized business segments that work cohesively to optimize its assets. The company also fosters a culture of innovation, storytelling, and collaboration, which enables it to remain agile and competitive in the fast-paced entertainment industry, as well as capture value in that same ever-changing industry. Chapter 4 Question 8 The Walt Disney Company's core competencies that contribute to its competitive advantage are those that they’ve honed and developed alongside their continual success. These can broadly be broken down into storytelling and content creation, brand management and IP monetization. Disney is renowned for its unparalleled storytelling and ability to create memorable characters and stories that resonate with audiences worldwide. The company's expertise in animation, live-action films, and television programming enables it to produce diverse, high-quality content across its brands, such as Disney, Pixar, Marvel, and Star Wars. Disney's ability to leverage its iconic brands and intellectual property across multiple platforms and business segments is a core competency. The company skillfully monetizes its IP through theme parks, resorts, consumer products, licensing agreements, and direct-to-consumer streaming services, generating significant revenue, and maintaining a strong brand presence. Synergy across business segments: Disney's strategic integration of its business segments, including media networks, parks and resorts, studio entertainment, and direct-to-consumer streaming services, creates a synergy that allows the company to maximize the value of its assets. This cross- utilization of resources strengthens Disney's competitive advantage and enhances its market position. These core competencies differentiate Disney from its competitors and form the foundation of its sustained competitive advantage in the global entertainment industry.

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Chapter 5 Question 9 The Walt Disney Company appears to be focused on a combination of accounting profitability, shareholder value creation, and economic value creation. The company's focus on revenue growth, diversification, and long- term strategic planning supports these three objectives. Accounting profitability: Disney's financial performance, as reported on Yahoo Finance, shows a focus on accounting profitability. For instance, their revenue and net income figures are key indicators of their financial success (Yahoo Finance, 2023). Shareholder value creation: The company's commitment to delivering long-term shareholder value is evident in their investor relations materials, such as annual reports and SEC filings. In their 10-K report, Disney states that its "primary financial goals are to maximize earnings and cash flow and allocate capital toward growth initiatives that will drive long-term shareholder value" (The Walt Disney Company, 2021). Economic value creation: Disney's focus on innovation, quality, and diverse content across its business segments contributes to economic value creation/The company's investments in direct-to-consumer streaming services, such as Disney+, Hulu, and ESPN+, reflect its efforts to adapt to changing consumer preferences and create new revenue streams (The Walt Disney Company, 2023). In conclusion, while accounting profitability and economic value creation are important, Disney's primary objective of long-term shareholder value demonstrates its commitment to maximizing returns for its investors through strategic growth and diversification. Comparing this external data to the textbook, in chapter 5 page 164, the explanation of Share Holder Value Creation over the long-term fits well here, as with the vast size, history and legacy of the Walt Disney Company. The concept of the efficient- market hypothesis seems to fit well here, from the same page in the text as the entirety of the firm’s history of performance and those speculating the future of performance, that price is imbedded in the market price of the firm. Chapter 6 Question 10 Yes, The Walt Disney Company has differentiated products and services, which are mainly based on their unique intellectual property, storytelling, and brand recognition. Intellectual Property: Disney owns an extensive portfolio of characters, movies, and franchises, such as Mickey Mouse, Frozen, Star Wars, and Marvel Cinematic Universe (The Walt Disney Company, 2023). This diverse range of intellectual property enables Disney to create differentiated content that appeals to a wide audience. Storytelling: Disney is renowned for its unparalleled storytelling and ability to create memorable characters and stories that resonate with audiences worldwide. The company's expertise in animation, live-action films, and television programming sets it apart from competitors in the entertainment industry (The Walt Disney Company, 2023). Brand Recognition: The Walt Disney brand is globally recognized and associated with quality family entertainment. This strong

brand equity allows the company to differentiate its products and services from competitors and maintain a loyal customer base (The Walt Disney Company, 2023). Disney's differentiated products and services are evident in various segments of its business, such as theme parks and resorts, media networks, studio entertainment, and direct-to-consumer streaming services. These differentiators enable the company to maintain a competitive advantage in the global entertainment market. Looking at Chapter 5, page 199 in the textbook, the book touches on the need for an organization, in order to keep a differentiated competitive edge, the specific differentiators that Disney has under its massive IP library, along with it growing into nearly every emerging media market, The Walt Disney Company is attempting to retain its position at least, ideally further diversifying the media/services offered, following an economy of scope model. Chapter 6 Question 11 The Walt Disney Company does not primarily focus on a cost-leadership position in its business. Instead, the company emphasizes creating unique and high-quality products and services based on its strong brand recognition, intellectual property, and storytelling capabilities. Disney's strategy involves differentiation and offering premium experiences to its customers. For example, its theme parks and resorts are known for their immersive experiences, attention to detail, and exceptional customer service, often resulting in higher prices compared to competitors. Similarly, Disney's movies and television content are produced with high production values and strong storytelling, which allows the company to command a premium in the market. While cost control and operational efficiency are important for any business, Disney's primary competitive advantage lies in its differentiated offerings and strong brand rather than cost-leadership. Looking at the diagram on page 205 of the text, it depicts the relation between Economies of Scale, Minimum Efficient Scale, Diseconomies of Scale. The size and operation of Disney’s cost when graphed by Per-Unit-Cost and Output, Product/services Disney offers seems to fall within the spectrum where the more production per unit, the lower the cost. This with its ability to utilize economies of scope, has much more incentive to strategize in a differentiated technique. As described in cheaper 6 from the course textbook on page 198, the dogear presents a 4 quadrant, known as the Strategic Position an competitive Scope: Generic Business Strategies Outside of the Differentiation quadrant of which I stated as the model that Disney: Cost Leadership, Focus Cost Leadership, and focused differentiation. At first, I thought Disney may fall in the focused Cost Leadership quadrant, but due to their activities in so many different markets simultaneously I found the top right quadrant was most logical to be placed here. Chapter 6 Question 12 12. Based on the preceding answers, The Walt Disney Company is primarily employing a differentiation strategy. This strategy is built on leveraging the company's unique intellectual property, storytelling capabilities, strong brand recognition, and synergy across business segments. The firm is leveraging the appropriate value and cost drivers for its differentiation strategy, as evidenced by its continuous innovation, investments in high-quality content, and strategic expansion of its direct-to-consumer streaming services. Additionally, Disney's focus on providing premium experiences in its theme parks and resorts, along with its ability to monetize its intellectual property through various channels, further supports its differentiation strategy. Disney's competitive advantage lies in its differentiated offerings rather than cost leadership, which allows the company to command premium pricing and generate strong revenue. By focusing on its core competencies, such as storytelling, brand management, and cross-segment synergy, Disney is well-positioned to maintain its competitive advantage and continue creating value for its customers and shareholders. According to page 198 in the textbook, it explains the other possible competitive slope analysis. One such is the for a firm to be classified as a Cost Leadership model, which would not make sense for Disney as its sheer size makes a differentiation strategy much more appropriate than driving to change the pecking order through Cost Leadership strategy, especially when the share of the markets they operate in generally already have the power and size to innovate without a need to take any sort of “loss leader” prices to entice potential end users. Chapter 7.1 Question 13 1. What is the firm’s innovation strategy? Does it rely on incremental or radical innovations? Disruptive or architectural? What are the competitive implication of the Disney is a well-rounded firm in its own

sphere of innovative technologies. Incremental innovations: Disney focuses on enhancing its existing products and services, such as upgrading attractions in its theme parks, expanding its media library, and improving user experiences on its streaming platforms. Radical innovations: The company also invests in new technologies and ventures, such as the development of Disney+ and the acquisition of Marvel, Lucasfilm, and 21st Century Fox, which significantly expanded its content portfolio and market reach). Disruptive innovations: Disney disrupts traditional entertainment industry models by investing in its direct-to-consumer streaming services like Disney+, Hulu, and ESPN+. These platforms challenge traditional cable and satellite TV models and represent a shift in content consumption habits. Architectural innovations: The company focuses on creating synergies across its business segments, leveraging its intellectual property and storytelling capabilities to maximize the value of its assets in various channels such as theme parks, consumer products, and streaming services. The competitive implications of Disney's innovation strategies include solidifying its position as a global entertainment leader, expanding its consumer base, and maintaining a strong brand presence. By continuously innovating and adapting to market trends, Disney is well-positioned to address the challenges of a rapidly changing entertainment landscape and capitalize on new opportunities. Looking at page 235 of the textbook, the diagram shows Idea, Invention, Innovation, Imitation. Disney continually integrated its inventions and idea into a reality successfully, and looking above in the text detailed the different services and products they successfully brought to market successful. Chapter 7.2 Question 14 A recent innovation by The Walt Disney Company is the launch of its direct-to-consumer streaming service, Disney+. Disney+ offers a vast library of content, including Disney, Pixar, Marvel, Star Wars, and National Geographic titles, as well as original productions exclusive to the platform. The firm's strategy to cross the chasm and achieve mass-market adoption of Disney+ involves the following: Leveraging its strong brand and unique content: Disney's recognizable brand and extensive library of beloved franchises provide a compelling value proposition for consumers, setting it apart from other streaming services Offering competitive pricing: Disney+ is competitively priced, making it an attractive option for consumers seeking high-quality content at an affordable cost Expanding its content offering: Disney invests in the creation of original content exclusive to Disney+, such as "The Mandalorian" and the Marvel series "WandaVision," which attract new subscribers and keep existing ones engage. Rapid international expansion: Disney has been aggressively expanding Disney+ into new markets, aiming for global availability to maximize its subscriber base. Strategic partnerships and bundles: Disney has formed partnerships with various companies, such as Verizon, and offers bundles with Hulu and ESPN+ to enhance the value proposition and drive adoption. By leveraging its brand, content library, and strategic partnerships, along with competitive pricing and rapid global expansion, Disney aims to cross the chasm and establish Disney+ as a leading player in the streaming service market. Using the Exhibit on page 237 of the textbook, its show a 3 categorial Ven diagram, including Novel, Useful, Implemented, and for the center overlap Innovation occurs. By Disney making originals, making strategic ownership alliance with NBC.

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Chapter 7.3 Question 15 A recent innovation by The Walt Disney Company is the launch of its direct-to-consumer streaming service, Disney+ Disney+ offers a vast library of content, including Disney, Pixar, Marvel, Star Wars, and National Geographic titles, as well as original productions exclusive to the platform. The firm's strategy to cross the chasm and achieve mass-market adoption of Disney+ involves the following: Leveraging its strong brand and unique content: Disney's recognizable brand and extensive library of beloved franchises provide a compelling value proposition for consumers, setting it apart from other streaming services. Offering competitive pricing: Disney+ is competitively priced, making it an attractive option for consumers seeking high-quality content at an affordable cost. Expanding its content offering: Disney invests in the creation of original content exclusive to Disney+, such as "The Mandalorian" and the Marvel series "WandaVision," which attract new subscribers and keep existing ones engaged. This shows their open inRapid international expansion: Disney has been aggressively expanding Disney+ into new markets, aiming for global availability to maximize its subscriber base (The Walt Disney Company, n.d.). Strategic partnerships and bundles: Disney has formed partnerships with various companies, such as Verizon, and offers bundles with Hulu and ESPN+ to enhance the value proposition and drive adoption. By leveraging its brand, content library, and strategic partnerships, along with competitive pricing and rapid global expansion, Disney aims to cross the chasm and establish Disney+ as a leading player in the streaming service market. Considering the Chapter Case on page 232 of the textbook, it describes how Disney managed to innovate Netflix’s magic and created their own streaming behemoth, buying up Netflix’s contemporary competitor Hulu, in a joint venture with NBC to add to their competitive edge. Chapter 8.1 Question 16 The Walt Disney Company is highly vertically integrated. This means that the company controls various stages of its value chain, from content creation to distribution and consumer experiences. Several examples illustrate Disney's vertical integration. Disney produces content through its various studios, such as Walt Disney Animation Studios, Pixar, Marvel Studios, and Lucasfilm, enabling it to control the creative process and maintain the quality of its intellectual property. Distribution: Disney has launched its direct-to-consumer streaming platform, Disney+, which allows the company to distribute its content directly to consumers, bypassing traditional distribution channels and maximizing its revenue. Disney operates its theme parks and resorts worldwide, offering immersive experiences based on its intellectual property, further monetizing its content and reinforcing its brand. Disney controls the design, production, and distribution of merchandise based on its intellectual property, enabling it to capitalize on the popularity of its franchises and characters. This high degree of vertical integration allows Disney to maintain control over its content, brand, and consumer experiences while maximizing revenue opportunities and strengthening its competitive position in the market. Mentioned above and in several areas in the textbook, specifically page 290, Disney’s joint venture with NBC. By not negotiating to buy out the firm, but to have majority ownership rights (67$%) but more importantly %100 voting rights on the actual choices made by the combined companies. Chapter 8.1 Question 17 While specific details about The Walt Disney Company's offshoring practices hard to find, it is likely that certain aspects of its vertical value chain are offshored. For example, manufacturing of consumer products, such as toys and merchandise, could be offshored to countries with lower production costs. There might also be offshoring in some IT and customer support operations. Here are some pros and cons of having parts of the value chain outside the home country. Cost savings: Offshoring operations can lead to lower labor and production costs, which can improve a company's bottom line. Access to global talent: Offshoring allows companies to tap into a diverse talent pool, potentially improving the quality of their products and services Operational flexibility: By offshoring certain functions, companies can take advantage of time zone differences and provide round-the-clock services. Conversely, Disney could lose the vertical integrative edge it has through full home country control. Loss of control: Offshoring may result in reduced control over certain aspects of the

value chain, potentially impacting quality, and consistency. Communication and cultural barriers: Offshoring can introduce language and cultural barriers, making effective communication and collaboration more challenging. Potential negative public perception: Offshoring, especially in cases where jobs are moved from the home country to lower-cost locations, can lead to negative public perception and backlash. As an example of a backlash of an offshored vertically integrated firm, Apple is a great example explained on page 294, showing the forward/backward diagram. Apple keeps as much as possible proprietary, leading to several ongoing right to repair legislation, anti-consumerism allegations, and most newsworthy was the Foxconn suicide nets, Foxconn being the main manufacturing plan (at the time of this writing) of the hardware for Apple products. These nets were used as a solution for productivity slowdowns (i.e. suicide attempts to avoid the gruesome working conditons, instead of addressing the issue in a less absurd and humane way. Although Foxconn and Apple share some degree of separation, these sorts of events cause a backlash to the reputation and PR of each companies, to the point where Apple is attempting to shift its production outside of China, due to their human rights violations that clash with Apple’s supposed company values.

Chapter 9.1 Question 18 Research what strategic alliances your firm has entered in the past three years. If there are several of these, choose the three you identify as the most important for further analysis. Based on company press releases and business journal reports for each alliance, what do you find to be the main reason the firm entered these alliances? Although the firm is perched well in its vertical integration structuring, The Walt Disney Company has entered several strategic alliances. As stated on page 336 of the textbook very clearly, reasons to go a horizontal strategic path include reduction in competitive industry, lower cost, and increased differentiation. From searching the last three years of Disney’s alliances, three do seem to be the most important. Disney and Spotify (2020): Disney partnered with Spotify to create a Disney Hub on the music streaming platform, providing users with access to Disney soundtracks, playlists, and podcasts (Spotify, 2020). The main reason for this alliance was to expand Disney's content reach and engage with new audiences in the music streaming space. Disney and Comcast (2020): Disney reached an agreement with Comcast for the distribution of Disney+ and ESPN+ on Comcast's Xfinity platform (The Walt Disney Company, 2020). This alliance aimed to increase the availability of Disney's streaming services to more customers and facilitate subscriber growth. Disney and Target (2019): Disney and Target announced a collaboration to open Disney Store shop-in-shop locations inside select Target stores and launch a Disney-focused digital experience on Target's website (Target Corporation, 2019). This strategic alliance aimed to extend Disney's retail presence and offer a unique, immersive shopping experience for customers. These alliances demonstrate Disney's focus on expanding its content reach, increasing the availability of its streaming services, and enhancing its retail presence to drive growth and engage with new audiences. Chapter 9.2 Question 19 To determine if these alliances have successfully reached the intent in their goals with the respective firms and the type of alliance goals meant to be reached is a hard to qualify as success or failure yet; with this emergence of “Web 3.0” the changing marketplace for content is on unsteady footing, withing a mostly digital space yet to be fully realized. Disney and Spotify: The alliance between Disney and Spotify seems successful in achieving the original intent of expanding Disney's content reach and engaging new audiences in the music streaming space. By creating a dedicated Disney Hub on Spotify, Disney fans can easily access and enjoy their favorite soundtracks, playlists, and podcasts, while Spotify benefits from increased user engagement and potential subscriber growth. Disney and Comcast: The partnership between Disney and Comcast appears to be successful in increasing the availability of Disney's streaming services to more customers. By distributing Disney+ and ESPN+ on Comcast's Xfinity platform, both companies can benefit from increased subscriber growth and revenue. The partnership also strengthens Disney's position in the streaming market, where it competes with other major players like Netflix and Amazon. Disney and Target: The collaboration between Disney and Target to open Disney Store shop-in-shop locations and launch a Disney-focused digital experience on Target's website also seems to be successful. By bringing the magic of Disney stores to Target, the alliance extends Disney's retail presence and provides customers with a unique, immersive shopping experience. This partnership can drive customer engagement and sales for both Disney and Target. As stated on page 342 of the textbook, ideally an alliance will allow access to the other companies breadth of performance; but what’s more allow the potential for innovation to flourish through newly formed lines of communication between the firms, as is what seems to be the case for the alliances Disney formed with Spotify, Comcast, and Target.

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Chapter 10.1 Question 20 An example given on page 359 of the text shows a diagram of the advantages and disadvantages of international expansion, and Disney has so far done it relatively well. Being one of the most recognizable brands around the globe, Disney’s approach to local while being so global is even taught in textbooks. T he Walt Disney Company has adapted its products and services to cater to differences in countries and cultures. This global approach to localization has allowed Disney to appeal to diverse audiences and expand its market reach. Content localization: Disney tailors its content to suit the preferences of specific regions by dubbing or subtitling movies and TV shows in different languages, altering certain scenes or characters, and even producing region-specific content. Theme Park experiences: Disney adjusts its theme parks to cater to the local culture and tastes. For instance, Disneyland Paris has unique attractions and food offerings that appeal to European visitors, while Shanghai Disneyland features attractions and themes that resonate with Chinese culture, considering not only features that are desired in certain locales, but to remove or censor in others. Merchandising and retail: Disney adapts its merchandise to suit the preferences and trends of different countries, offering region-specific products and designs to cater to not only local culture but local government and law. One of the promotional posters for certain superhero films under Disney were altered due to backlash of “differing cultural understandings” of minority groups or certain parts of social class systems. Chapter 10.2 Question 21 The Walt Disney Company is indeed working internationally for various reasons, including accessing larger markets, gaining low-cost input factors, and developing new competencies. Here are some examples with specific citations: Accessing larger markets: Disney operates in multiple countries through its media networks, theme parks, and streaming services, allowing it to access larger markets and reach diverse audiences. For example, the launch of Disney+ in various regions globally has expanded the company's market reach (The Walt Disney Company, 2020). To gaining low-cost input factors, Disney sources content production to various countries, leveraging low-cost input factors like labor and resources. For example, Disney has outsourced animation work to countries like India, where labor costs are lower (India Briefing, 2017). Developing new competencies: Disney forms partnerships with international companies to develop new competencies and tap into local expertise. For instance, Disney's collaboration with China's Tencent to produce an animated film based on a Chinese folktale showcases the company's efforts to develop cultural competencies and create content that resonates with local audiences (Variety, 2020). Chapter 10.3 Question 22 Due to the size of the The Walt Disney Company, it appears to be employing a Transnational strategy. Combining elements of global standardization with localization to cater to different markets while maintaining global efficiency and competitiveness. Disney’s Transnational strategy allows it to maintain its global brand identity while adapting its products, services, and content to suit local preferences and culture. This approach enables the company to resonate with diverse audiences while retaining its core values and essence. By leveraging global standardization elements, Disney can achieve economies of scale and scope, reducing costs and maintaining operational efficiency. This efficiency is vital, considering the company's diverse operations, including media networks, theme parks, and streaming services. A Transnational strategy enables Disney to respond to the unique needs and dynamics of individual markets. This flexibility is essential as it allows the company to address local competition and capitalize on emerging opportunities. Innovation and knowledge sharing: The Transnational approach facilitates innovation and knowledge sharing across different markets, fostering collaboration and the development of new competencies. This cross-pollination of ideas can drive creativity and help Disney stay ahead of the competition. As the diagram on page 374 shows, the transnational

choice makes most sense, though the Walt Disney Corporation check the boxes in many of the other strategic modalities, but transnational fits the most as described above. Chapter 11.1 Question 23 Based on actions and documentations on Disney’s long term goals, The Walt Disney Company follows a traditional hierarchical organizational structure, as evidenced by information available on its corporate website. The company operates under a diversified business model, with several segments, including Media Networks, Parks, Experiences and Products, Studio Entertainment, and Direct-to-Consumer & International. Key characteristics of Disney's traditional organizational structure include keep the brand in relevance for over 100 years. Centralized decision-making: As per the company's leadership page, the CEO, along with the executive management team, oversees the entire organization and its segments (The Walt Disney Company, n.d.). This top-down approach ensures that decisions are made strategically and aligned with the company's overall vision and goals. Divisional structure: As described in Disney's 2020 Annual Report, each of the business segments operates with its own management team, responsible for the segment's performance (The Walt Disney Company, 2020). This divisional structure allows each segment to focus on its core competencies and tailor its strategies to its specific market and competitive environment. Clear hierarchy: Within each division, there is a clear hierarchy of roles and responsibilities, facilitating communication, coordination, and control. The impact of Disney's traditional organizational structure on its competitive advantage include several competitive edges. Efficient resource allocation: The hierarchical structure enables efficient resource allocation and decision- making, ensuring that the company's various business segments receive the necessary resources to pursue their strategic goals (The Walt Disney Company, 2020). By organizing its operations into separate divisions, Disney can adapt to changes in the market and its competitive environment more effectively. Each division can focus on its core competencies and respond to industry-specific challenges, which ultimately strengthens the company's overall competitive advantage (The Walt Disney Company, 2020). The hierarchical structure promotes accountability, as each division is responsible for its performance. This clear delineation of roles and responsibilities helps to maintain a performance-driven culture, which is crucial for sustaining the company's competitive advantage (The Walt Disney Company, 2020). 12.1 Question 24 In 2023, one ethically questionable action by The Walt Disney Company was its response to Florida Governor Ron DeSantis's policies, which Disney CEO Bob Chapek criticized as "anti-business" (Baker, 2023). However, Disney's strong stance was perceived as an attempt to exert political influence over state policies rather than addressing ethical issues. This action raises questions about the company's ethical approach and how it balances political involvement with its primary business activities. To have an organization that can overrule the actual rule of law is a serious ethical dilemma.

Question 25 The Walt Disney Company has demonstrated resilience in the face of challenges such as the COVID-19 pandemic, and its investments in streaming services like Disney+ have shown promising results. However, potential investors should always conduct thorough research, consult updated financial information, and consider their own investment goals and risk tolerance before making any investment decisions, all leading me they have little chance of failure no matter the storm they may weather. With the changing culture around the Pandemic, The Walt Disney company is going to need to continue to pivot to keep up with a growing market of media consumption in new formats. The stock price of Disney fluctuates but not cause a panic in markets like other behemoths. With their new model of acquiring or making alliances with other media groups and distributors like NBC seem to me to make them an even safer bet yet. I think, in all, I would invest $1000 into DIS (if I had that much to invest at the moment).

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References: Buckley, T. (2023, April 3). Disney CEO Blasts DeSantis’s Policies as ‘Anti-Business . Bloomberg.com. Retrieved April 17, 2023, from https://www.bloomberg.com/news/articles/2023-04-03/disney-ceo-iger- blasts-desantis-s-policies-as-anti-business?leadSource=uverify+wall Rothaermel, F. T. (2021). Strategic management. McGraw-Hill Connect . McGraw-Hill Education. Retrieved from https://prod.reader-ui.prod.mheducation.com/epub/sn_bd168/data-uuid- 7c5647c375924b91b86e3dd7961c76b9. SEC. (2023). DIS The Walt Disney Company Landing Pagre . Edgar Entity Landing Page. Retrieved April 17, 2023, from https://www.sec.gov/edgar/browse/?CIK=1744489&owner=exclude The Walt Disney Company. (2020, March 16). Retrieved April 17, 2023, from https://thewaltdisneycompany.com/ Yahoo! (2023, April 17). The Walt Disney Company (DIS) stock price, news, Quote & History . Yahoo! Finance. Retrieved April 17, 2023, from https://finance.yahoo.com/quote/DIS?p=DIS&.tsrc=fin-srch Perez, S. (2019, July 17). Spotify partners with Disney on a new streaming hub aimed at families . TechCrunch. Retrieved April 24, 2023, from https://techcrunch.com/2019/07/17/spotify-partners-with-disney-on-a- new-streaming-hub-aimed-at-families/ Deitchman, B. (2020, February 21). The Walt Disney Company and Comcast announce agreement on Hulu's future governance and ownership . The Walt Disney Company. Retrieved April 24, 2023, from https://thewaltdisneycompany.com/the-walt-disney-company-and-comcast-announce-agreement-on- hulus-future-governance-and-ownership/ A Bullseye View. behind the scenes at Target . Target Corporate. (n.d.). Retrieved April 24, 2023, from https://corporate.target.com/press/releases/2019/08/Disney-and-Target-Team-Up-to-Bring-the-Magic-of- Di Davis, R. (2020, September 15). China hates Disney's 'Mulan,' but it has nothing to do with politics . Variety. Retrieved April 24, 2023, from https://variety.com/2020/film/asia/why-china-hates-disney-mulan- 1234770198/#! Latest business and regulatory updates . India Briefing News. (2017, December 22). Retrieved April 24, 2023, from https://www.india-briefing.com/news/ Relations, T. W. D. C. I. (2022, November 8). The Walt Disney Company reports Fourth Quarter and full year earnings for fiscal 2022 . The Walt Disney Company. Retrieved April 24, 2023, from https://thewaltdisneycompany.com/the-walt-disney-company-reports-fourth-quarter-and-full-year- earnings-for-fiscal-2022/ United States Securities and Exchange Commission - The Walt Disney Company . (n.d.). Retrieved April 24, 2023, from https://thewaltdisneycompany.com/app/uploads/2021/01/2020-Annual-Report.pdf

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