One of the important themes running through this module is competitive advantage. We integrate and extend our prior analysis of competitive advantage by bringing together industry analysis (Chapter
2) and the analysis of resources and capabilities (Chapter 3). With reference to the Disney case provide detailed responses to the questions below using relevant theoretical support.
Questions:
1 How does the concept of ‘economies of scope’ help to explain Disney’s diversification strategy?
2 What are the pros and cons for Disney of operating television and cable networks?
3 In 2009 Disney announced that it had acquired Marvel Entertainment, a comic book and action hero company for $4billion. How would you evaluate the value-creating potential of this decision?
4 What are the key challenges Disney’s senior managers face in running such a diverse set of businesses?
Provide detailed responses giving reasons to the above questions using wider reading, strategy content, theory & terminology.