Reawakening the Magic: Bob Iger and the Walt Disney Company Case Solution
What did Bob Iger do to rejuvenate Disney
Bob Iger became the CEO of Disney in 2005.Bob Iger was able to do what the previous CEO of the company was unable to.Bob Iger in his entire tenure took crucial steps, such as: rejuvenating Disney animation, acquired several franchises that were popular and showed promising long-term growth potentials, following which, he expanded Disney’s operations/content globally.After the removal of Eisner’s (ex –CEO) by the investors; Bob Iger decided to observe what other rival media companies had and what was focused on in terms of reviving the terms with the old partners.
As soon as he took the responsibility of the CEO in 2005, he immediately took steps to revive the ragged relationships with Pixar. Iger contacted Steve Jobs (owner of Pixar studios) and showed his willingness in starting a new journey with the company. Both Iger and Jobs opened negotiations and aimed to make Disney a Pixar-friendly company.
Iger decided that his new strategy for the company would be to admire themselves. For this purpose, the newly appointed CEO contacted the reconstituted strategy team and asked them to formulate and design a new corporate strategy for the company.Bob Iger also took crucial steps and considered-boosting Disney’s theme parks as a priority. He spent-around $1 billion to re-form the California Adventure Park in Anaheim and filled it with new and exciting attractions that were based on Disney and Pixar characters.
Iger steered the construction of the Shanghai Disney Resort in China for approximately $5.5 billion. The construction of this resort project was not easy for Iger and his team as the negotiation with the Chinese government took two years.
Bob Iger also focused on developing or creating content that customers would actively seek out. He wanted to push creativity in Disney operations. Iger was a technology enthusiast who advocated to increase the usage of technology to make Disney related content available around the globe. Seeing that the future was heavily based on digital content and technology, Iger noticed that it was essentially a contest between movie-makers to gain an abundant amount of materials to meet that market demand.
2D animation was towards its end and to revive the company; Bob Iger proposed buying Pixar. Iger noticed that about 60% of the Disney’s success was coming from the films that were produced in collaboration with the Pixar studios,such as: “Toy Story” and “Finding Nemo”. Pixar was a solid money-maker, purchasing it would prove to be fruitful for Disney.
Under the leadership and guidance of Bob Iger, Disney successfully purchased Pixar in January 2006 for $7.4 billion. This step was crucial in rejuvenating Disney and this event marked the beginning of the turnaround for Disney. The attainment of Pixar’s bought a blockbuster movie from Disney titled “Frozen”, which was watched, loved, and appreciated around the globe. The movie surpassed around $1.3 billion in the box-office and became the most successful Disney movie ever.
After the milestone Pixar deal, Iger put strategies forward to acquire Marvel studios. The attainment of “Marvel”, added movies such as “Black Panther”, and “The Avengers” to Disney’s list of most successful movies and increased the wealth of the company’s intellectual property. Later Iger guided his team and successfully acquire Lucas-film in 2012. This deal added “Star Wars” to the Disney collection.
All the aforementioned films from Pixar, Marvel, and Lucas-films directed Disney towards a new route of success. Through these franchise purchases, Disney redesigned the franchise film strategy in Hollywood.
What is the corporate strategy of Disney? How has it evolved?
Disney is one of the leading as well as a valuable diversified multinational mass media and entertainment organization, which has been engaged in inspiring, informing and entertaining people throughout the globe through the power of the unparalleled storytelling, innovative technologies, creative minds and reflecting the iconic brands.
In order to lead the mass media and entertainment market; Iger contemplated to shift the culture at Disney and implementing a new strategy. Hence to identify the way forward, he asked the reconstituted strategy team to have a closer look over the media and entertainment strategy and also asked to emphasize on formulating a new and an effective corporate strategy.
The corporate strategy of the company became to employ the most effective technology in service of the customer throughout the globe and to deliver the highest quality entertainment franchises on all relevant platforms. Throughout the tenure of Iger, he has been reiterating the strategy on a continuous basis and was engaged in honing on in existing non-current business and the areas, where the company has created value for the customers as well as the shareholders.
It is pertinent to note that the corporate strategy of the company was based on three strategic pillars, which included: international expansion, technology, and creativity. The creativity strategy of the company involves parallel thinking for analyzing the issue, evaluating the ideas, generating value-added ideas, construct as well as critique the plan of action. The company pioneered itself in discovering creative ideas &turning them into reality.
Furthermore, it is evident by the analysis that the development in technology allowed the company to create new avenues for the customer to consume the media and entertainment and support the development of more and quality content. In the age of information technology that has bought a revolution in the media and entertainment industry, Iger emphasized on the significance of distributing the content in a user-friendly way and leveraging the technology. By doing so, the company would be able to increase the demand forts content amongst its customers, throughout the world.
Additionally, Iger stressed over the significance of offering creative content to the customers in order to create inclusive, fun, safe, and positive experiences,which the audience of all ages could enjoy. Furthermore, he believes that the creative content, diversity in storytelling and entertainment experience are integral to the viability and growth of the company in the long run. By stimulating the creativity and focusing on creating the kind of content which customers actively seek for; the company would be able to lead the market by serving a larger base of customers.
Moreover, the third pillar of the company’s corporate strategy is expanding the business operations in the under-penetrated markets, particularly the BRIC countries, because of the reason that these countries account for 40 percent of the entire world population as well as over 20 percent of the global GDP. The company has intended to expand its business operations in BRIC countries through expanding its relationship with the local customers and nurturing positive relationships with them, in order to facilitate the discovery of new customers, increase the customer revenues, enhance the customer loyalty and improve the customer service……………………….
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