Running head: THE WALT DISNEY COMPANY VS. TIME WARNER INC.
THE WALT DISNEY COMPANY VS. TIME WARNER INC.
THE WALT DISNEY COMPANY VS. TIME WARNER INC: INDUSTRIAL ANALYSIS
MBA 500 Essential of Business Management
December 4th, 2016
City University of Seattle
This industrial report analyzes and compares the competitive strategies between Walt Disney and Time Warner. It addresses the question “How are they using competing technologies to compete in the market?” With the help of Michael Porter strategic tools, the reader will understand both companies’ business strategies, their current position, the way how these two companies can improve themselves.
The entertainment industry is fragmented; for example, there are many companies which create animated movies, cartoons, video games, feature films, some are even involved in the operation of theme parks and resorts. The Walt Disney operates through five segments: such as media networks, parks and resorts, studio entertainment, consumer products and interactive, whereas Time Warner operates through three segments which are Warner Bros, Turner, and Home Box Office (HBO). Although there are so many fields that these two companies focus on, but their main goal is to entertain their customers.
The Walt Disney Company
The Walt Disney Company was found on October 16th, 1923, Los Angeles, CA by Roy O. Disney, and Walt Disney. In 1928 Plane Crazy was directed by Walt Disney, which was the first cartoon produced by the Disney studio. Then in 1937 Walt Disney produced its first animated film, Snow White and the Seven Dwarves (Sourced: MarketLine, History 2016). In this manner, Walt Disney grew all around the world and it is not only famous in the entertainment industry but it kept their foot in the hotel business as well, where it has its own resorts, having good theme parks as well as, making itself worldwide known and having market share of about 16.2% (Source: IBIS World 2016). The company also operates the Hungama and UTV/Bindass networks in India. In the recent year of 2016 The Walt Disney released Moana on November 28th, 2016 (Sourced: The Walt Disney Company website).
Time Warner was found by Henry Luce and Britton Haddon in 1922. In 1925, Warner Bros, went public and in the same year it acquired the patent of the Vitaphone, which had music and synchronization of silent movie. The first synchronized talking movie was AL Jolson’s The Jazz Singer which was released in 1927. In the same year of 1927 Time Warner opened its first bureau. In 1930, the first looney tunes short subject Sinkin in the Bathtub, was out. In 2003, AOL Time Warner changed its name to Time Warner and it also changed its ticker for the company’s stock on the New York Stock Exchange (NYSE). (Source: MarketLine, History 2016) Time Warner has 4.5% of market share (Source: IBIS World 2016). In December 2015, Cartoon Network produced Cartoon Network Anything, an...