Corporate- Core Competencies and Functional Components

We all know that the Walt Disney Company has four main core competencies and functional components, i.e. company pillars- Studio entertainment, Parks and Resorts, Media Networks, and Consumer Products. However, perhaps it is time to update this framework to reflect new business ventures, technologies, and emphasis.

1. The first new pillar I propose is the Dining services branch, reporting directly to the CEO and executive management team, as shown.

 You may be wondering what Disney and these restaurant chains have to do with one another. Simple, they are businesses that have a strong brand that delivers a unique customer experience similar to Disney, but are limited in their size and growth options under current circumstances. Companies like these are what Disney would be if it were accessible in every major city. I am proposing that Disney acquire these chains and CONTINUE OPERATIONS across the globe. You may be arguing that Disney has never run a chain of restaurants or anything like this, but in reality they have. Most malls across the U.S. have a Disney Store inside of it which is now run by the Walt Disney Company. Disney has in essence learned how to properly run a store from their parks and resorts division and decided to apply it to nationwide retail by re-purchasing the remaining stores. Additionally, seeing a Disney store in every major city provides a necessary gateway to sell their products, advertise upcoming releases, and provide an exploratory setting to test new products or explore new design options. Think about it, Disney cannot experiment with the stores in the parks, but they can at the Disney stores in the malls. Now apply this same principle to restaurants. Disney has mastered the art of running a unique and exquisite restaurant at their resorts and in their hotels, why not expand their reach, but designing for individual malls would be nearly impossible. Acquiring recognized and strong brands with strong market share will give Disney the ability to continue to hone their service craft in the food sector and will automatically give Disney better food source products to fix the food catastrophe that continues to occur inside the parks (See posting titled "Disney Dining: Excellence, mediocrity, and slop". Through smart acquisitions and growth, Disney can increase its influence and demographic, not just through the television and movie medium. Guests can enjoy a quality Disney product by eating at Red Robin or Dippin' Dots, etc.

  You may be wondering why these companies? Simple, they all have very strong followings, but are limited in number and revenue, and can be bought out. Disney's history of strong service, brand maintenance, and deep pockets would RUN THESE BUSINESSES BETTER THAN THEY ARE CURRENTLY RUN, hence growth and profits. This was the same principle for Disney buying Marvel. Few would argue that Marvel, with Disney's oversight and funding, is a better company now and offers a better and more profitable product than ever before.

Disney should also explore CONTRACT AGREEMENTS with certain companies to provide guests with popular food inside the parks at certain stands. Under these contracts, Disney would let the company sell their product in their parks and increasing their reach, and would pay Disney a high regular fee. These companies are private and are known to not be for sale, but would still add value to the Disney brand through their association. The best known example of this was the Wayward Ho' fry carts at Frontierland that sold McDonalds french fries to Disney guests. The arrangement can be profitable for both parties.

Companies worth contracting with
 - In-N-Out Burger
 - Chick-Fil-A

2. The second change would be acquiring select other businesses with strong brands, strong followings, unique products, and a niche that Disney could easily grow into. These businesses would be run under the Consumer Products division and would help further Disney's growth in certain industries. A good example of a company Disney should acquire is the famous language software company, Rosetta Stone.

 Why Rosetta Stone Inc. you ask? Let's look at it. First, this company is the #1 language learning software in the world and has GUARANTEED CONTRACTS with the U.S. government. Second, as the world becomes more global in technology and business, employers demand for employees who can speak multiple languages will increase greatly, thus ensuring a growing customer base. Third, the company is still relatively small (annual revenue ranging between $220-$280 million per year). During an economic crisis, the government contracts alone will help to ensure increased economic stability for a company in an unstable market. Fourth, the company is strong and unique, and has built a strong brand.

Now, you may be wondering what experience Disney has at language software? Well, first off, Disney continues to invest more money into its English learning labs in China, so Disney already does do business in this industry. Additionally, Disney owns the Baby Einstein company, aimed at teaching young children subjects through interactive activities. Lastly, Disney continues to purchase and grow their interactive media group, recognizing the need for a strong computer software industry. Rosetta Stone is already established and will help them in pursuit of expanding their technology and software development sections.

Are these all of my ideas? No, these are just a few, but these are FEASIBLE and PROMISING acquisitions. There are many more ideas that we will pursue in further postings, but for now I think we need to realize that Disney has the ability to enter any industry, but that a smart acquisition will help them with their EXISTING CUSTOMERS AS WELL AS HELP THEM REACH NEW CUSTOMERS AND OFFER NEW EXPERIENCES. Thoughts?