Oligopoly And The Disney Company. Essay

6690 words - 27 pages

1. INTRODUCTIONOligopolies have been around ever since there is trade. However, it has only recently gained grounds in this age of globalisation. Never before has oligopolistic competition been so fiercely contested across so many industries.The media industry in the United States of America (US) is one such industry. As a powerful communication tool, the media has attracted many companies but only a handful has grown big. These media giants have dominated the local market and are currently seeking to conquer the global media industry in search of better profits.One of these media giants is the Walt Disney Company (Disney). Its dramatic growth from a small company to become an oligopolist in the media industry offers an interesting case study.This report studies Disney's nature of business in the US media market. It starts with an outline of the media oligopoly in the US, which is imperative to appreciate the nature of Disney's business. Moving on to the next section, it briefly describes the history and corporate structure of Disney.Following that, the study analyses Disney's nature of business in relation to oligopoly. Here, it correlates the characteristics of oligopoly with the nature of Disney's business.The subsequent section proceeds to discuss the influence that oligopoly has on Disney's strategies. It demonstrates how Disney develops these strategies under the oligopoly structure to remain competitive.In the final section, this report discusses the influence of oligopoly on Disney's behaviour. It assesses how Disney behaves and responds towards an oligopolistic market structure.2. THE MEDIA OLIGOPOLYWhen a handful of big corporations dominate an industry, the industry is said to be concentrated (McCain n.d.). The concentration ratio (total output from the four largest firms) is used to measure the degree of concentration in the market. Generally, if the concentration ratio is more than 40%, the market is considered an oligopoly (O'Sullivan & Sheffrin 2003).The USA media industry is an oligopoly because it is concentrated with five big companies. According to McChesney (1998):The US media industry covers a very broad spectrum of related businesses. Any business that is related to the media such as film production, broadcasting, distribution, movie theatres, television, book publishing, newspaper publishing, recorded music, etc. belongs to the media industry.Traditionally, these businesses were all individual oligopoly markets with a handful of firms trying to control as much production in their own fields as possible. In general, these firms were different firms dominating each of these businesses (McChesney 1998, 1999).For years the US laws and regulations prohibited vertical integration and mass ownership in the media industry (McChesney 1999). However, some of these restrictions have been relaxed or eliminated recently. Media companies immediately capitalised on this opportunity to begin conglomeration of media ownership (McChesney...

Find Another Essay On Oligopoly and the Disney Company.

The Walt Disney Company: The Art Of Brand Building Keeps Disney Center Stage

1690 words - 7 pages The Walt Disney Company has evolved from a wholesome family-oriented entertainment company into a massive multimedia conglomerate. Not only is Disney a producer of media but it also distributes its and others’ media products through a variety of channels, operates theme parks and resorts, and produces, sells, and licenses consumer products based on Disney characters and other intellectual property. CEO Michael Eisner has been instrumental in

A Cultural Assessment of the Walt Disney Company

2073 words - 8 pages seeks to develop creative, innovative and profitable entertainment experiences for the entire family. At the same time, the company strives to maximize Disney's long-term value to their shareholders. By the end of the twentieth century, the Walt Disney Company had already established footholds in four major business segments: Media Networks, Studio Entertainment, Parks and Resorts and consumer Products.Disney strives to separate itself from

The Walt Disney Company as an Internet Pioneer

1297 words - 5 pages The Walt Disney Company as an Internet Pioneer There are many factors that contribute to an organizations success, or downfall. Identifying these factors and the role each of them has on the four functions of management should help the organization be more successful. Three factors that may impact an organization may be E-business, technology, and/or diversity. There are many organizations in the world today, though few have been as

Control Mechanisms: The Walt Disney Company: Team project

1354 words - 5 pages Control Mechanisms: The Walt Disney Company Introduction Organizations use control mechanisms to help regulate guidelines and procedures which contribute toward effectively achieving organizational goals. The Walt Disney Company is a well known entertainment organization that has become tremendously successful both nationally and internationally over the past 70 years or so partly through successful implementation of control mechanisms

The Disney Company- The Key to the Happiest Place on Earth

2236 words - 9 pages The objective of the Disney Company is to be the world's leading presence in the field of information and entertainment. Disney is accomplishing this goal by employing its vast portfolio of services, consumer products, and content. The Disney Company is innovative, creative, and most of all, profitable. The company delivers the goods to consumers as well as shareholders, by establishing footholds in critical markets. These markets encompass

Disney Movies: The Imagination and The Reality

781 words - 3 pages When a tale is told, it is repeated and reconfigured to suit our backgrounds and our name. A tale in reality, is just a memory that has already been experienced and is being shared from a different point of view (Seger 386). Walt Disney Pictures creates scenarios where the situation of which characters are placed in, reflect families of the real world. Movies like The Jungle Book: a story about a boy raised by wolves in the jungle; and Finding

Gender Role Portrayal And The Disney Princesses

1862 words - 7 pages begin to realize that the Disney princess line, through their story lines and characters are setting up gender roles for children, essentially educating them on what society deems appropriate for their gender. Many of their movies often portray some stereotypical representation of gender, consistently depicting the heroine as the victim who needs help saving, playing the typical damsel in distress. For many years, the Disney Corporation has

Models of oligopoly behaviour, whether the respective assumptions are realistic and examples where different models might be the most appropriate.

1941 words - 8 pages assumes that firm 2's price remain constant. This is not true in the long run, therefore equilibrium in this oligopoly will not be stable long enough to have a serious impact on the market.Finally, it is also a necessity to try and deter firms entering the market by setting non-attractive prices. I.e. not setting prices to low so that it is easy for a new entrant to take away the competition.Overall this oligopoly behaviour is not realistic

Walt Disney and How He Revolutionized the World of Animation

1154 words - 5 pages possible (Selden 28).The first animated cartoon appeared in 1906 while Disney was just a boy. Disney developed a love of drawing and drawing cartoons in particular while growing up. He delivered newspapers for his father and experimented with his creative side by acting and taking art classes whenever he could. After a time with the Red Cross during World War I, Disney was working for the Kansas City Film Ad Company, using old fashioned methods

Euro Disney - Analysis of the External and Internal Environment

1386 words - 6 pages Euro Disney’ marketer’s before entering a market as in this case has been the European market should have scanned the environment. By scanning the environment they should analyze the mega-environment as well as the task environment for possible opportunities and threats. Yet, a close attention could have been paid to their strength and weaknesses inside the company. Indeed, the consideration about any trends should have been incorporated in

The Good and Bad Aspects of Disney Movies

1696 words - 7 pages The debate over the good and bad aspects of Disney movies has been going on for years. It has become a part of pop culture in a way never expected through things such as YouTube videos and meme’s. While looking at multiple Disney movies may give a wider range of example of both the good and the bad in Disney movies, to help depict the effects the movies actually have on kids it is most beneficial to study just one movie. Zia’s essay argues that

Similar Essays

The Walt Disney Company Analysis

1134 words - 5 pages “The Walt Disney Company is a leading diversified international family entertainment and media enterprise with five business segments: media networks, parks and resorts, studio entertainment, consumer products and interactive media.” (The walt disney, n.d.) At year end of 2013, the company had net revenues of $45 billion, up from $42.3 billion the previous year and net income of $6.1 billion, up from $5.7 billion the previous year. ("Walt

Exploring Walt Disney Company: The Entertainment King

1500 words - 6 pages Strategic Management The Walt Disney Company: The Entertainment King[1] I. Why has Disney been successful for so long? Disney’s long-run success is mainly due to creating value through diversification. Their corporate strategies (primarily under CEO Eisner) include three dimensions: horizontal and geographic expansion as well as vertical integration. Disney is a prime example of how to achieve long-run success through the choices of

The Walt Disney Company Entertainment King

9475 words - 38 pages Disney Company: The Entertainment King I only hope that we never lose sight of one thing-that it was all started by a mouse. - Walt Disney The Walt Disney Company's rebirth under Michael Eisner was widely considered to be one of the great turnaround stories of the late twentieth century. When Eisner arrived in 1984, Disney was languishing and had narrowly avoided takeover and dismemberment. By the end of 2000, however, revenues had climbed from

Case Study The Walt Disney Company: The Entertainment King

1264 words - 5 pages ). Actually, over the years, Walt Disney adopted different strategies, diversified its activity, always trying to manage creativity in the best way. Under Einer, creativity was handled through the brain-storming meetings, and when they were reduced or became useless, they were regretted. Furthermore, the only way to survive for the company was to keep being creative, which is why it had hard times when creativity was not sufficient or handled