Introduction
The Walt Disney Company is one of the major mass media and entertainment conglomerates in the world. The company’s business is diverse and large-scale, preventing it from showing financial solid performance year after year. Besides, Disney is often referred to as a benchmark in its industry and is being used as a studying case in the management and business field. One of the company’s main competitive advantages is the ability to carry out smooth strategic acquisitions. Since 2006, the conglomerate has bought several companies renowned for their unique personal style – Pixar, Marvel Comics, and Lucasfilm.
Moreover, Disney’s business strengths include excellent value communication through various marketing techniques. Understanding all of these tactics could help find the key to the enterprise’s success. This paper examines different tactics that differentiate Disney from its competitors, focusing on negotiations and acquisitions.
Methodology and Identification of Relevant Literature
To fulfill the goals of this case study, a literature review is adopted as a methodology. Although there has been no abundance of publications over the past five years on this topic, several informative resources used in the case have been identified. In the journal article “Business Acquisition Analysis: A Case Study of Disney-Fox Deal,” Chen discusses the company’s strategic business negotiation tactics and practices bringing an example of the Fox acquisition.
“Comprehensive preparation, the flexibility of the decision-making process, dedicated design of payment method, and trust construction” are identified as the most effective strategies. The acquisition of value 71,3 billion US dollars made Disney one of the most extensive online streaming services. A significant achievement of the purchase is the careful economic calculation of the deal, which paid off despite critics’ opinions about its undervaluation.
Another paper by Chen, “The Star Wars Negotiation: Is It a Perfect Business Negotiation?” analyzes another financially successful acquisition example. Lucasfilm was sold to Disney for 4 billion US dollars. The peculiarity of this absorption was the personal interaction of Lucas and Iger. Through genuine interest, Iger convinced Lucas that the latter needed the deal primarily to preserve his legacy (Lucas was 67 years old at the time of the agreement).
However, while the negotiations resulted in Disney’s desired outcomes and financial returns, the takeover was not ideal. Since Lucas initially intended to retire, his right to a voice in the company was perceived by Iger as insignificant. However, during the filming of Star Wars, the director’s increasing desire to influence the plot caused a rift between him and Iger. Therefore, Lucas was removed entirely from affairs by Disney.
Forbs’ article “Disney Strategy is Working” by Trainer leads the reader through the overview of the business, highlighting other essential strategies followed by the company. These include establishing unique brand value, excellent content monetization, long-term view on profit. Trainer focuses in particular on the value of the company’s brand, its ubiquity, and emotional attachment. Disney is not only about TV shows and cartoons; the company appeals to the feelings of nostalgia in people, seeks to tell a story close to everyone, and does it magically.
Findings and Conclusion
Based on the study of this case, it can be concluded that the strategic acquisition is so successful for Disney due to careful preparation for the deal, including the calculation of all the economic nuances. A personal, trusting relationship with partners also plays a significant role in success. In addition, the company’s business tactics that differentiate it in the marketplace include building an ethereal backdrop for viewers and increased global exposure. All of this makes Disney a strong enterprise with a unique corporate culture that managers and entrepreneurs’ worldwide study.
References
Chen, N., Lin, X., Luo, R., & Shao, G. (2021). Business Acquisition Analysis: A Case Study of Disney-Fox Deal. Proceedings of the 2021 International Conference on Economic Development and Business Culture (ICEDBC 2021). Web.
Jing, Y., Shao, K., Sun, C., & Wang, Y. (2021). The Star Wars Negotiation: Is It a Perfect Business Negotiation? Proceedings of the 2021 International Conference on Economic Development and Business Culture (ICEDBC 2021). Web.
Trainer, D. (2021). Disney’s Strategy Is Working. Forbes. Web.