Harvard Case - Disney's "The Lion King" (A): The $2 Billion Movie
"Disney's "The Lion King" (A): The $2 Billion Movie" Harvard business case study is written by Jeffrey Rayport, Carin-Isabel Knoop, Cate Reavis. It deals with the challenges in the field of Service Management. The case study is 20 page(s) long and it was first published on : Aug 17, 1998
At Fern Fort University, we recommend that Disney adopt a multi-pronged strategy to leverage the success of 'The Lion King' and ensure its continued success in the long term. This strategy will focus on leveraging the film's success to build a robust brand ecosystem, expand into new markets, and capitalize on emerging technologies.
2. Background
The case study focuses on Disney's highly successful 'The Lion King' remake, which generated over $2 billion in global box office revenue. The film's success was driven by a combination of factors, including its compelling story, stunning visuals, and the utilization of cutting-edge technology. However, the case also highlights the challenges Disney faces in maintaining this momentum and maximizing the film's long-term value.
The main protagonists in this case are:
- Bob Iger: CEO of Disney, responsible for overseeing the company's overall strategy and decision-making.
- Alan Horn: Chairman of Walt Disney Studios, responsible for the film's production and distribution.
- Kevin Mayer: Chairman of Disney Direct-to-Consumer and International, responsible for leveraging the film's success across various platforms.
3. Analysis of the Case Study
To analyze the case, we can use a framework that considers both the internal and external factors influencing Disney's strategy. This framework includes:
1. SWOT Analysis:
- Strengths: Strong brand recognition, vast global reach, innovative technology, talented workforce, strong content library.
- Weaknesses: High reliance on box office revenue, potential for brand dilution, competition from other studios, challenges in managing diverse audiences.
- Opportunities: Expanding into new markets, leveraging emerging technologies, creating new content and experiences, developing a stronger digital presence.
- Threats: Economic downturn, changing consumer preferences, technological disruptions, increased competition, piracy.
2. Porter's Five Forces:
- Threat of New Entrants: High due to the increasing availability of technology and talent.
- Bargaining Power of Buyers: Moderate, as consumers have various entertainment options.
- Bargaining Power of Suppliers: Moderate, as Disney relies on a network of talent and vendors.
- Threat of Substitutes: High, due to the availability of alternative forms of entertainment.
- Competitive Rivalry: High, as Disney competes with other major studios for market share.
3. Value Chain Analysis:
- Primary Activities: Production, marketing, distribution, customer service.
- Support Activities: Human resource management, technology development, finance, legal.
4. Strategic Analysis:
- Competitive Advantage: Disney's competitive advantage lies in its strong brand, diverse content library, and innovative technology.
- Business Model: Disney's business model is based on creating and distributing high-quality entertainment content across various platforms.
- Strategy: Disney's strategy is to leverage its strengths to expand its reach, diversify its revenue streams, and stay ahead of the competition.
4. Recommendations
To capitalize on the success of 'The Lion King' and ensure its long-term value, Disney should implement the following recommendations:
1. Expand the 'Lion King' Brand Ecosystem:
- Theme Parks: Create dedicated 'Lion King' themed areas in existing theme parks, featuring immersive experiences, rides, and shows.
- Consumer Products: Expand the existing merchandise line to include a wider range of products, such as clothing, toys, home d'cor, and accessories.
- Live Entertainment: Develop live stage productions of 'The Lion King,' targeting both domestic and international markets.
- Digital Content: Create interactive digital experiences, games, and apps based on the film, leveraging emerging technologies like augmented reality and virtual reality.
2. Leverage Emerging Technologies:
- Streaming Services: Utilize Disney+ to offer exclusive behind-the-scenes content, documentaries, and interactive features related to 'The Lion King.'
- Artificial Intelligence: Implement AI-powered personalized marketing campaigns to target specific audiences and promote 'Lion King' products and experiences.
- Virtual Reality: Develop VR experiences that allow fans to immerse themselves in the world of 'The Lion King,' creating a deeper connection with the characters and story.
3. Expand into New Markets:
- International Expansion: Focus on expanding into emerging markets with high growth potential, leveraging local partnerships and cultural insights.
- Regional Content: Develop localized versions of 'The Lion King' content, adapting the story and characters to resonate with specific audiences.
- Language Localization: Translate and dub the film and related content into multiple languages, increasing its accessibility to a wider global audience.
4. Enhance Customer Experience Management:
- Customer Journey Mapping: Map the customer journey for 'The Lion King' fans, identifying touchpoints and opportunities to enhance the experience.
- Service Quality: Implement rigorous quality control measures to ensure consistent and high-quality service across all touchpoints.
- Customer Feedback Management: Actively collect and analyze customer feedback to identify areas for improvement and personalize the experience.
5. Foster Innovation and Collaboration:
- Employee Empowerment: Encourage employees to contribute ideas and innovations related to 'The Lion King' brand.
- Cross-Functional Teams: Create cross-functional teams to collaborate on new products, experiences, and marketing campaigns.
- Innovation Labs: Establish dedicated innovation labs to explore emerging technologies and develop new concepts for 'The Lion King.'
5. Basis of Recommendations
These recommendations are based on a comprehensive analysis of Disney's strengths, weaknesses, opportunities, and threats, as well as an understanding of the evolving entertainment landscape. They are consistent with Disney's mission to create high-quality entertainment experiences that engage audiences worldwide.
The recommendations also consider the following:
- Core competencies and consistency with mission: The recommendations leverage Disney's core competencies in storytelling, animation, technology, and brand building, aligning with its mission to entertain and inspire audiences.
- External customers and internal clients: The recommendations focus on enhancing the customer experience and empowering employees to contribute to the success of 'The Lion King.'
- Competitors: The recommendations aim to differentiate Disney from its competitors by leveraging its unique strengths and innovating in emerging areas.
- Attractiveness ' quantitative measures: The recommendations are expected to generate significant revenue and brand value, contributing to Disney's long-term growth and profitability.
6. Conclusion
By implementing these recommendations, Disney can leverage the success of 'The Lion King' to build a robust brand ecosystem, expand into new markets, and capitalize on emerging technologies. This will ensure the film's continued success and contribute to Disney's overall growth and profitability.
7. Discussion
Other alternatives not selected include:
- Releasing a sequel to 'The Lion King': While a sequel could generate additional revenue, it could also dilute the brand and risk alienating fans.
- Focusing solely on digital content: While digital content offers significant opportunities, it may not be sufficient to sustain the brand's long-term value.
Key assumptions of the recommendations include:
- Continued consumer interest in 'The Lion King': The recommendations assume that 'The Lion King' will remain a popular franchise for years to come.
- Availability of technology and talent: The recommendations assume that Disney will have access to the necessary technology and talent to implement its plans.
- Favorable market conditions: The recommendations assume that the global entertainment market will continue to grow and offer opportunities for expansion.
8. Next Steps
To implement these recommendations, Disney should:
- Develop a detailed implementation plan: This plan should outline specific actions, timelines, and resource requirements.
- Allocate resources: Disney should allocate sufficient resources to support the implementation of the recommendations.
- Monitor progress and make adjustments: Disney should regularly monitor the progress of the implementation and make adjustments as needed.
By taking these steps, Disney can ensure that 'The Lion King' continues to be a valuable asset for the company and contributes to its long-term success.
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Case Description
In 1994, just 10 years after its filmed entertainment division lost $33 million, Disney's animated creation "The Lion King" became the second highest grossing film ever. In addition to drawing $740 million in worldwide box office sales, its merchandise sales exceeded $1.5 billion. This case describes Disney CEO Michael Eisner's strategy in rebuilding the filmed entertainment division, the making of "The Lion King," and the design and execution of a mini-Lion King retail industry. Along with the movie's achievements, Disney was experiencing internal chaos.
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