Question

A monumental factor behind Disney's success is the company's acquisition strategies. Compose a brief analysis describing (i) the company's approach to successfully completing acquisitions, (ii) why you believe this approach has been fruitful in the past, and (iii) the influences you think the company's past acquisition strategies will have on future strategies.

Answer 1

The Walt Disney Company acquired many businesses to expand its entertainment and media business to reach new horizons. It, in fact, acquired more than ten businesses including 21st Century Fox, Pixar, Marvel, and Lucasfilm, etc. It helped The Walt Disney Company to revitalize its businesses

(i)Disney's approach to successfully completing acquisitions

The following are the major approaches of Disney in case of acquisitions.

• The Walt Disney Company acquired only profitable companies.
• It mainly acquired competing companies.

(ii)why you believe this approach has been fruitful in the past

The following are the reasons why we call the acquisitions of Disney were a successful strategy in the past.

• It helped The Walt Disney Company in expanding its businesses worldwide.
• Acquisitions helped the company in improving the efficiency of its studios.
• Acquisitions helped the company in diversifying the business in all most all areas of entertainment and media industry including parks and interactive media.
• It helped the company to expand its contents.

(iii)the influences you think the company's past acquisition strategies will have on future strategies.

The following are the future benefits that the company may reap in the future due to past acquisitions.

• It will take the company to reach new customers and new markets.
• It will give the company strength to go for fresh acquisitions.
• It helps the company to reduce future competition in the segment.
• It will help the company to gain new categories of audiences.

Please give Up-vote if you like the answer. Thank you.