Sunday, 24 January 2010

How Disney uses synergy

The diagram above was produced by the Disney corporation in 1967 to show their various ventures or 'synergies.' The diagram shows that the studios were central to the Disney operation. The studios command the largest amount of real estate on the diagram and have more links than any of the others. In 1967, the company was still in touch with its studio beginnings, and it was this that formed the centre of all the company's activities.

Other divisions included in the diagram are Disney World Florida which was in its early stages (had not even been built yet), the Mineral King ski resort which never materialised, and the Celebrity Sports Center which did but was short-lived.

Some of the more interesting synergies:

•Disneyland plugs motion pictures and keeps characters before the public - The characters are arguably the most important part of the Disney theme parks. This was a planned strategy from forty years ago; Sleeping Beauty Castle was named while the film was still in production as a means of building interest in the character and story. Disney often regularly teams up with McDonalds to give away free toys in their trademark 'Happy Meals' during or sometimes before a new films general release.

•Disneyland and Disney World Florida provide a major sales outlet for merchandise licensing - The company has always carried various souvenirs for sale in the parks, including ones branded with characters from television and film.

•TV promotes the theme parks - Walt Disney viewed television as a great promotional tool. This is still the case, Disney has television advertisements for its holiday parks, channels and shows, plus any toys of characters etc.

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