Question

Walt Disney created the Disney brand from humble beginnings based on his love of drawing and animation. The Walt Disney Company has since expanded successfully into a global entertainment and media brand. Using the internet, research the components that make up the Disney brand and discuss how The Walt Disney Company has expanded its product mix.

Please write personal perspective. Please type it up, because hand writing is sometimes hard to understand

Answer 1

Resource Based View is the machinery, which is used to assess the strategic resources of the organization. These strategic resources must have the calibre to establish the company’s competitive edge in market. The resource based view takes into account both the tangible as well as intangible assets of the organization.

A resource must qualify on the VRIO or VRIN framework to be considered as having potential for creating competitive advantage for the company.

·       V- Valuable

·       R- Rare

·       I- Inimitable

·       O- Organized to capture Value

Disney’ VRIO Model

·       Value: Technology, Brand, Characters, Contents, People, IP, IT, Processes, Interplays, Imaginers

·       Rarity: Technology, IP, IT

·       Inimitability: IP, Brand

·       Organized to exploit: Content, Organization, People, Money, Processes, Coordination

Following will serve as the major limits to Disney’s growth model in future:

·       Limited diversification supported by the company’s business model

·       The rate of innovation may not match the growth rate of the company and thus, may act as a limitation

The business model of Disney supports limited diversification. This may eventually serve as a roadblock to the growth rate of the company.