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De Montfort University Kazakhstan

Case Study Report
The Context of Business
Darya Pronina 1221
Week beginning 28 th of February 2022
Dr Mariya Pionka, PhD

Executive Summary

The Case Study Report focuses on Disney's core business functions and how they changed
during the Covid 19 pandemic. The report was conducted on research on the company's website.
Moreover, it includes an analysis of the impact of environmental factors.

Table of Contents

Executive Summary 1

Introduction 1

Discussion (Overview of the business) 2

Discussion (An analysis of its key functions 2

and how they have changed throughout
the Covid-19 pandemic)
Discussion (Identification of 3
environmental factors)
Conclusion 3

Reference List 3

Introduction

“Walt Disney Company is a $27 billion a year Global Entertainment giant which is an American
based company was started by Walter Disney in venture with his brother named Roy O Disney in
1923” (Case Study: Walt Disney’s Business Strategies, no date). Walter Disney gained his
recognition by releasing animated children's films. The company currently owns film companies
such as Pixar, Marvel Studios, 20th Century Studios, and television networks-ABC.

The purpose of this report is to provide an analysis of the business structure and functions of The
Walt Disney Company and information about changes in the company during the Covid-19
pandemic.
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The report is divided into 3 parts in the Discussion sector.

Discussion
1.Overview of the business.

“The Walt Disney company, together with its subsidiaries and affiliates, 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 FAMILY OF COMPANIES, no date). The media networks segment covers
digital social networks, television, television stations and radio networks. Disney owns the
television channels ABC, ESPN, Disney Channel, A&E, Hulu and Fussion networks for content
distribution. The studio's entertainment operations are divided into the creation of music for new
soundtracks. Sound recording takes place at Walt Disney Records and Hollywood Records. The
second part of the entertainment segment is the production and distribution of films and the
development, production, and licensing of live entertainment. The subsidiaries Marvel Studios,
Touchstone Pictures, Disneynature, Pixar Animation Studios, Walt Disney Animation Studios
and Lucasfilm are responsible for this (Paul Petersen,2017). The company's parks segment is
based on 12 theme parks, 4 ships and 53 resort hotels in America, Europe, and Asia. Consumer
products & interactive media is a division of the Disney parks segment that promotes the
popularity of the characters in their everyday lives by creating clothing, housewares, toys, books,
apps, and console games for fans all over the world (DISNEY PARKS, EXPERIENCES AND
PRODUCTS, no date).

2. An analysis of its key functions and how they have changed throughout the Covid-19
pandemic.
Disney's success is built on understanding the consumer, providing fun and entertainment based
on family values. As mentioned earlier, the company provides several types of segments. The
most profitable segments are the media segment and parks. For the first quarter of 2019, the
media segment generated revenue of $5.92 billion, the parks segment generated $6.66 billion for
the same time. However, after the epidemic started in the first half of 2020, the company
suffered a decline in revenue due to the closure of the parks on involuntary measures (DISNEY
REVENUE BY SEGMENT (2017 – 2021),2021). By August 2020, the company had suffered a
loss of $4.7 billion, but Disney's newest and, according to many investors, most important
business - streaming - has experienced explosive growth with people in home quarantine. By the
third quarter of 2020, subscriptions to Disney + had increased to 60.5 million users.
(Barnes,2020). Disney created a strategy that was to make an age-appropriate consumer market
for each character. The company during the pandemic improved a large distribution channel and
four types of content: Studios, General Entertainment, Sports and International. Studios content
is a collection of world-class entertainment studios that create stories for theatre, film, and
Broadway. General Entertainment content is more suitable for teenagers as the company creates
entertainment, educational and news content on Freeform, ABC, Hulu, and National Geographic
channels. In addition to producing movies and cartoons, Disney also produces sports events and
sports news. Disney expands its business every year and creates international content to maintain
its popularity worldwide. "The International Content and Operations Group is responsible for
developing and producing local and regional entertainment and sports programming outside the
US for The Walt Disney Company's streaming services. This group includes company teams in
Asia Pacific, EMEA, India and Latin America that manage Disney's local business in each
region, including international linear channels, regional streaming, local ad sales and local
distribution" (ABOUT THE WALT DISNEY COMPANY, no date).
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3. Identification of environmental factors.

During Covid 19, Disney went through a series of difficulties and changes that were influenced
by uncontrollable external factors. External factors are determined by politics, laws and rights,
the state of the economy, social trends, technology capabilities and the epidemiological state of
the world. Political factors influence the marketing and entertainment of products, which
includes intellectual property rules as well as adherence to censorship by product purchasing
countries. Disney's global operations have an obligation to comply with environmental
regulations, including keeping parks clean, improving consumer protection, and providing safety
features on rides and Internet sites, allowing the company to establish a trustworthy image.
Disney is closely tied to economic conditions, given the international reach of the business. Most
of the business comes from parks and hotels in the United States, but the company is also
developing similar attractions in Europe which presents opportunities for business growth.
Economic factors such as unemployment, also affect the company, as during the pandemic there
was a sharp rise in termination of pay TV channels; however, at the same time the impact of
lockdown has had a knock-on effect on the social fabric and channels subscriptions have risen.
As a result of Disney listening to the needs of fans by releasing films with characters that
resonate with people of different backgrounds and age groups. Technological advancement plays
a key role in the entertainment industry through innovation in app development, movie
production and theme parks. Technological factors are evolving with each passing year and as a
result Disney is pushing the envelope with advanced technology to provide superior products.
The main challenge during the pandemic is the epidemic factor, which is affecting park, hotel,
merchandise production, movie and show releases as well as the demand for products and
services.
Conclusion
This report confirms that despite the difficulties in environmental factors, Walt Disney has been
and remains a leading entertainment company worldwide, providing a wide range of
entertainment. Despite the economic crisis during the pandemic and the closure of one of the
major segments of the company - the parks, which affected the business of entertainment, travel,
and leisure in general. Disney has remained in the global market to promote its products with a
strong tradition and family values, while at the same time developing technology in film and
character design, mobile applications and console games that meet the needs of consumers.
Reference List
MBA Knowledge Base (no date). Case Study: Walt Disney’s Business Strategies. Available at:
<https://www.mbaknol.com/management-case-studies/case-study-on-walt-disneys-business-
strategies/> (Accessed :25 February 2022). 
Petersen, P., (2017). The Business Model of the Walt Disney Company. Grin.com. Available at:
<https://www.grin.com/document/417282> (Accessed: 25 February 2022). 
Disney Parks, Experiences and Products (no date). Disney Parks, Experiences and Products.
Available at: <https://dpep.disney.com/> (Accessed: 25 February 2022). 
The Walt Disney Company (no date). THE WALT DISNEY FAMILY OF COMPANIES.
Available at: <https://privacy.thewaltdisneycompany.com/en/company-overview/> (Accessed:25
February 2022). 
The Walt Disney Company (no date). About The Walt Disney Company. Available at:
<https://thewaltdisneycompany.com/about/#:~:text=The%20mission%20of%20The%20Walt,the
%20world's%20premier%20entertainment%20company> (Accessed: 27 February 2022). 
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Gupta, L., (2021). Disney Revenue by Segment (2017 - 2021). Business Quant. Available at:
<https://businessquant.com/disney-revenue-by-segment#:~:text=It%20amounted%20to
%20%241.06%20billion,the%20fourth%20quarter%20for%202018> (Accessed: 26 February
2022). 
Barnes, (2020). Disney, Staggered by Pandemic, Sees a Streaming Boom. Nytimes.com.
Available at: <https://www.nytimes.com/2020/08/04/business/media/disney-earnings-
coronavirus.html> (Accessed: 26 February 2022). 
Shaw, A., (2021). PESTLE Analysis of Disney. SWOT & PESTLE Analysis. Available at:
<https://swotandpestleanalysis.com/pestle-analysis-of-disney/> (Accessed: 27 February 2022). 
Team, M., (no date). Walt Disney PESTLE Analysis | MBA Skool. MBA Skool. Available at:
<https://www.mbaskool.com/pestle-analysis/companies/18031-walt-disney.html> (Accessed: 26
February 2022).