Walt Disney Co.

: The Entertainment King

Key Learnings
Disney’s Success Story :
 Disney positioned itself as a universal timeless family entertainment by using its competencies.
 Resource Based Approach :

Financial Income
Parks
Tangible Resources
Physical Rides
Lands
Technological know-how
Technology
Animation Technology
Brand Equity
Reputation Brand Names
Intangible Resources Customer’s Attendance
Patents Media Technology
Character and Plots (From
Entertainment
Film and TV Series)
Culture Organizational Culture

 Characters are the biggest resources for Disney as they are instrumental for different stream of
revenues like movies, theme parks, etc.

Michael Eisner’s Vision :

 The objective was to maximize Shareholder Wealth with a Return on Equity Target of over 20%.
 Using a portfolio of brands to differentiate their content, services and consumer products and seek
to develop the most creative, innovative and profitable entertainment experiences and related
products in the world.

Diversification Strategy :
 They focused on their core competencies such as films, TV shows and theme parks for their existi
ng brands.
 As a media conglomerate, Disney focused on entertainment which was family friendly while
abandoning mature audiences.
 The newly developed Parks, Experiences and Consumer Products assigned the legendary Walt Dis
ney Imagineering responsibility for the development of consumer products such as goods, games,
publishing and apps.
 For the group, the diversification strategy appears to be a long - term win, as revenue streams fro
m independent industries dilute risks.
Teva Pharmaceutical Industries
Key Learnings
Options for Teva :
 Focus on other US market and the other generic markets.
 Expanding into the global branded markets.
 Gradually turning into specialized generics or innovative pharmaceuticals.
 Criteria : Value creation, utilizing company’s strengths, aligned with their core values

Teva’s Core Values & Strengths :

 A focused firm, not a conglomerate
 Global company having cost leadership advantage
 Large Market Shares
 Close relations to academic institutions
 Taking risks but not ones that risk the entire company
 Experienced at pharmacy driven markets

Market Segments :
Geographical US, Wester/Eastern Europe, Japan, Latin America Asia
Key Driver Physician Driven, Pharmacy Driven
Product type Commodity generic, niche generic, biosimilars or innovative

The Way Ahead for Teva :

 Keeping up the generics market in US and Europe
o Very good at filing ANDA in the USA. Paragraph IV and exclusivity period provides higher
margins.
o Europe's debt crisis has governments looking for places to reduce costs e.g. generics.
 Introducing Biosimilars and niche markets to Latin America and Eastern Europe
o Less competitive than generics, higher entry barriers, higher gross margins, closer to
innovative.
o Competitors in Europe expanding aggressively, important to get in the market before it’s
too late.
 Pursuing the innovative market
o Impressive success with Copaxone (Blockbuster Drug, accounts for 12% Sales) and Azilect
o Collaborating with Israeli Academic Institutions in R&D – Cost Advantage
 Maintain global company
 Integrate acquired companies
 Create separate divisions for innovative generics and commodity generics, like Ivax for biosi
milars