The Walt Disney Company: The Entertainment King Case Summary

The Walt Disney Company: The Entertainment King

Introduction

The Walt Disney Company has truly been “the entertainment king” in the 83 years since its founding. This is largely due to the vision of Walt Disney, as well as the strategic management skills of Michael Eisner. The work of these two men, as well as countless others at The Walt Disney Company has created an innovative business model with universal appeal.

A History of Disney

The Disney Brothers Cartoon Studio was founded in California in 1923 by Walt and Roy Disney. The brothers had a contract to produce “Alice Comedy” films about a live girl in an animated world. Over the next four years, around 55 films are produced in the series. In 1927, The Disney Studio began indirect production for Universal Pictures’ films “Oswald the Lucky Rabbit.” The brothers produced 26 films in their first year. In 1928, Universal took the contract from the Disney Studio, and Walt Disney created Mickey Mouse by widening Oswald’s ears and changing his clothes slightly. Mickey’s film debut was also in 1928 in the film “Steamboat Willie.”

1937 saw the release of Disney’s first feature-length animated film, Snow White and the Seven Dwarfs. In 1940 the company made its initial public stock offering, and ten years later, Treasure Island, Disney’s first entirely live-action film was released. Walt Disney himself also appeared on television for the first time in 1950. In 1955, Walt Disney realized his dream for a family-based theme park with the opening of Disneyland in Anaheim, California. Eleven years later, Walt Disney died of lung cancer, and his brother Roy became the new chairman of The Walt Disney Company. The company opened its second theme park, Walt Disney World, in Orlando, Florida in 1971.

Walt Disney World’s EPCOT Center was opened in 1982, with a central globe based on the Unisphere from the 1964 World’s Fair in New York City. EPCOT features pavilions representing eight countries. Disney expanded its international focus with the opening of Tokyo Disneyland in 1983. Tokyo Disneyland was designed by the creators of Walt Disney World and features a similar look and many of the same attractions. A shift in the company occurred with the board of directors unanimous decision to elect Michael Eisner as chairman and chief executive officer and Frank Wells as president and chief operating officer in 1984. Roy Edward Disney, son of Roy Disney became head of the animation division.

The Reason for Disney’s Success

The Walt Disney Company’s success up until the selection of Michael Eisner was due to Disney’s ability to create unique characters with universal appeal and then truly bring those characters to life. In addition to Mickey Mouse, the company created such well-known characters

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