Your Walt Disney World Information Station
Results 1 to 9 of 9
The Walt Disney Company Discuss Aggressive or Defensive? How should Disney react to this Economy in the Miscellaneous Disney forums; Christopher Xeureb is back with another Mouse Business article. Check it out here: http://www.disneyworldtrivia.com/Mou...to-Do-Now.html This time, he looks at the question of what should Disney do in this economy: Be ...
  1. #1
    disneydame2004's Avatar
    disneydame2004 is offline Celebrate Everyday!
    Join Date
    Jul 2004
    Location
    Long Island, NY
    Posts
    5,677

    Aggressive or Defensive? How should Disney react to this Economy

    Christopher Xeureb is back with another Mouse Business article. Check it out here: http://www.disneyworldtrivia.com/Mou...to-Do-Now.html

    This time, he looks at the question of what should Disney do in this economy: Be defensive (hunker down and wait it out), Be aggressive (use the misfortune of other companies to their advantage and acquire them at a bargain rate), or a mix of both.

    What strategy would you like to see the Disney company follow? Share your thoughts here.
    -Pat (Disneydame2004)
    Dream Team Auction Coordinator




    Help make a child smile! Dream Team Project Firstgiving Page

  2. #2
    Spodie's Avatar
    Spodie is offline Fastpass Holder
    Join Date
    Jul 2007
    Location
    Atlanta, Georgia
    Posts
    590
    I think they should be agressive. Why pay more to aquire a company when the economy turns around when they can get it much cheaper now? I know it's cut-throat, but it's business. The Warren Buffet quote pretty much sums it up: "Be fearful when others are greedy and be greedy when others are fearful."
    ~Ashleigh









  3. #3
    elvistelth is offline Unfortunately, this user's actions have resulted in him/her being BANNED from the site
    Join Date
    May 2006
    Location
    Ft. Liquordale
    Posts
    1,178
    I hope they don't buy up a bunch of stuff because then the parks will be more neglected then they already are.

  4. #4
    startedwmouse's Avatar
    startedwmouse is offline B-Ticket Holder
    Join Date
    Jan 2009
    Location
    Knoxville, TN
    Posts
    51

    Get more conservative.

    I think Disney needs to be a little conservative with the current economy. From an economics standpoint people's indifference for products will shift as their income decreases or goes away all together. So, when a consumer can get the same satisfaction with good Y (non disney) over X (disney) they are going to go with good Y. Good X and Y can be anything... fruit snacks, theme park tickets, anything.

    There is another post about the magical selections branded food goods. Those are historically priced a little more than a comparable product. If a consumer, whose income is suffering in this market, is faced with buying Disney branded fruit snacks for Johnny's lunch box over a Kroger brand they will go for the lower priced if the quality of the products are the same.

    I know the company I work for, a large media company - not Disney, has been very conservative since the downturn started. Since that decision was made, out earnings are strong and the stock price has not been terribly affected.

    M

  5. #5
    DisneyHomeVideo is offline B-Ticket Holder
    Join Date
    Nov 2008
    Posts
    71
    It is absolutely the time to buy quality assets. The Disney company has an incredible opportunity to move into new forms of media and to expand their older products easily and cheaply. Besides the reduced cost, what is available commercially is mind-blowing. If Walt were alive today, he would be beside himself with the ease of which people can be creative. Film and video cameras, combined with computer and software programs for editing or creating content, weren't even dreamed about then. People can do on their home computers what early Disney worked to do with teams of experts. Imagine what Walt could have done with the technology that exists today! But, the real trick isn't just being skilled technically, the real trick is finding people who can be creative and tell a story while using the technology. PIXAR pulled this off, and Disney acquired them. Who will be the next PIXAR? They're out there, somewhere.....

    Dan
    Disneyhomevideo

  6. #6
    Tmntrans's Avatar
    Tmntrans is offline Fastpass Holder
    Join Date
    Apr 2007
    Location
    Louisiana...Cajun Country
    Posts
    504
    I'd think be some what conservative or defensive. Disney's stock and profit is tanking right now. They are doing what they can in the short term by providing incentives to come to the parks at a substantial discount. This is good and they have the Disney name in which will pull them through no problem. Getting Pixar was a no brainer. How can lose when you already have a proven product??? The biggest thing is not to be taken by "let's get this or that because its available or cheap because its going under". Disney will buy certain things if it fits into their longterm model if they can get it cheap. As a business owner right now myself, cash is everything. I'm in the service industry and don't owe alot credit. I have been approached to buy equipment or contracts out dirt cheap and have resisted buying them because I'm making money now with what I have. I do though buy equipment that I will need down the road just to let it sit. When the economy improves I'll have it to do other services. But I won't try to start it now.
    Last edited by Tmntrans; 02-07-2009 at 03:21 PM. Reason: .

  7. #7
    DisneyHomeVideo is offline B-Ticket Holder
    Join Date
    Nov 2008
    Posts
    71
    Opportunities for Disney are already happening. This weekend's Wall Street Journal, on the front page, is reporting on how Steven Spielberg's and his company Dreamworks SKG, are in talks with Disney on a financing deal. Universal Studios appears to have backed out of a deal for $200 million in financing to distribute several films. Now, Dreamworks is talking with Disney to cover the costs.

    The last paragraph seems to say that Disney would offer a loan, rather than an equity deal (so Disney is not buying Dreamworks), I also cannot tell if these are adult-themed movies or family fare. Regardless, whoever would have thought the company that made Shrek would be partnering with Disney. Disney may be hurting, but they have hedged enough bets to keep their options open and to not be forced into a totally defensive position.

    I will be watching for more articles from Christopher Xeureb, I love his articles and he seems to know his stuff.

    Dan
    DisneyHomeVideo

  8. #8
    Tmntrans's Avatar
    Tmntrans is offline Fastpass Holder
    Join Date
    Apr 2007
    Location
    Louisiana...Cajun Country
    Posts
    504
    I thought Disney and Dreamworks already were working on something about 6 months ago or so??
    Last edited by Tmntrans; 02-08-2009 at 10:51 AM. Reason: .

  9. #9
    ChrisX's Avatar
    ChrisX is offline B-Ticket Holder
    Join Date
    Mar 2008
    Location
    New York
    Posts
    78
    Quote Originally Posted by DisneyHomeVideo View Post
    I will be watching for more articles from Christopher Xeureb, I love his articles and he seems to know his stuff.

    Dan
    DisneyHomeVideo
    Thanks for the kind words Dan, and I have been working on some new articles over the next few weeks or so, and one will definitely deal with this topic.

    It does appear that this deal is pretty close to happening and I think its a very nice move for Disney.

    First, remember that Disney has cut ties with the Narnia films and "freed up" money, in a sense, in that move.

    Second, it addresses one of the areas where Disney really seemed to need a boost. The company's film profits had fell 64% and that was definitley a point of concern for the company.

    Third, it falls into their synergy category. Speilberg does have a knack for family friendly material. Take a look at the attractions at Universal Studios and Disney based on Speilberg properties, off the top of my head I can think of Jurassic Park, E.T., Jaws and Indiana jones. Now obviously Speilberg is not making all of the movies in this deal himself, but he does seem to fit into the mold of what Disney wants and that's synergy. Create a property in one medium (movies) and make it usable in the other mediums (Parks etc.)

    TMNTRANS it was originally GE and Dreamworks who had settled on a deal worth around 200 million and it was announced in October that the deal was going to be done. But it recently fell apart because Speilberg was looking for more money to cover production costs.

    ChrisX

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •