Walt Disney Company Marketing

Walt Disney Company Marketing

The Walt Disney Company (the Company ) was founded by the brothers Walt and Roy Disney as a small animation studio on October 16 , 1923 . Since then , it has become one of the biggest Hollywood studios , and has expanded its business to include several television networks , including the American Broadcasting Company (ABC ) and ESPN , and eleven theme parks . The Company is the second largest media and entertainment corporation in the world , after Time Warner , with its corporate headquarters and primary production facilities located at The Walt Disney Studios

in Burbank , California

Environmental Factors

Since the Company engages in both domestic and global operations , its marketing decisions are affected by environmental factors at both levels . The Company considers the political and legal , economic , social and cultural and technological environment at both the domestic and global levels

Legal and legislative forces are usually identified as being negative factors to a company . Ironically , in Disney 's case , the French government contributed greatly in the Euro Disneyworld project by investing over USD 1 .2 billion in the project , building communication facilities , and giving Disney tax relief 's on cost of goods sold accounts . Economic activities in our country , as well as abroad , affect the performance of the Company . If there is a depression in Europe , Euro Disneyland may operate on a loss , meanwhile , the operations in Japan would be able to cover-up the losses by boosting operating revenues . The four

's of marketing are adjusted to minimize the threats and take advantage of opportunities arising from the economic environment . In 1997 , The Southern Baptist Convention (SBC ) votes to boycott the Company over opposition to the latter offering equal health and other benefits to gays and lesbians , as well as Disney allowing outside organizers to have "Gay and Lesbian Days " at Walt Disney World (Gay .Com , 2005 . This is an example of how a socio-cultural factor affects the Company 's marketing strategies . In this particular case , the Company chose to ignore this threat which led to the eventual surrender of the SBC (Gay .Com , 2005 . The impact of technology will be further discussed later in this

These factors present opportunities and threats . How the Company deals with these external factors ultimately affect their marketing decisions

Impact of Technology

Technology has a huge impact on the Company 's marketing decisions since they are engaged in the media and entertainment business Technological factors such as efficiency of infrastructure , new services of competitors , cost and accessibility of electrical power , as well as any new technology relevant to the company influence the Company 's strategic and operational marketing decisions . Taking advantage of these factors spells success for the Company

In its animation business , the Company has taken advantage of the new animation technology offered by Pixar , which transformed Disney whose own animated films have been less than spectacular in recent years , into the animation dynasty it was during the early 1990s , when it turned out such hits as Beauty and the Beast and Lion...