Introduction
Thinking critically entails investigating matters in depth to arrive at more correct conclusions and better decisions. Making decisions for one’s firm requires the use of critical thinking (Soomo Learning, 2020). An organization could lose time, money, and perhaps the firm itself if a hasty or foolish decision is made. There have been numerous occasions throughout history when a business decision prompted them to close their doors permanently. However, the Walt Disney Company is known for its critical thinking in its diversification strategy, which has allowed it to endure for nearly a century (Snider, 2019). The Walt Disney Company, among the most recognizable corporations in the world, has repeatedly proven its dedication to adapting to changing circumstances and developing cutting-edge expertise to maintain its position as an industry leader.
Analysis
Disney’s mission statement emphasizes the importance of creativity and fosters the company via narrative. This is the thought behind the innovation, and the company’s use of technology to entertain and motivate people for over 100 years shows its success. Since its foundation, Disney has expanded to offer various operations, such as theme parks, cruises, resorts, toys, other souvenirs, films, television shows, and more. According to the organization’s Chief executive officer and chairman, Disney’s expansive global entertainment company enables them to work in various strategic industries. The University of Connecticut’s 2015 Disney annual report indicates how the company has diversified since its foundation (Disney – Leadership, History, Corporate Social Responsibility, 2020). Generally, the company’s diversification has contributed to the company’s success in numerous sectors.
The Walt Disney Company has a more significant impact on the business world due to its diversification strategy. The term diversification refers to the practice of a company branching out into a related new line of work. Furthermore, linked diversification is sometimes regarded as the safest way for a corporation to expand because there is no significant departure from the company’s existing operations (Disney – Leadership, History, Corporate Social Responsibility, 2020). Since The Walt Disney Company generates movies and TV shows, shifting from traditional distribution channels to online streaming and direct to the consumer makes perfect sense. The Disney brand is excellent at keeping its audience guessing what it might do next but maintaining the confines of what is reasonable to predict.
The Walt Disney Company has demonstrated its ability to diversify its business portfolio through critical thinking techniques and this strategy since its foundation. A vital part of the company’s early success was the use of animation in its stories. The company has expanded to other mediums, such as live-action theme parks, cruises, hotels, and television. With the introduction of its commercial-free streaming service Disney+ and its subsidiary ESPN+, Disney has officially joined the streaming industry. The expanding popularity of streaming channels and the money Hulu was making ($3.5 billion in 2019) made Disney’s choice to expand into streaming services after purchasing Hulu seems like a smart investment (Snider, 2019). As a result, Destiny is making important business decisions that directly impact the company’s bottom line.
Conclusion
Disney will provide significantly more customization and ease of use than in the past. Since its foundation, The Walt Disney Company’s diversity strategy has yielded positive results. Due to its acquisition of Hulu and subsequent launches of streaming services like ESPN+ and Disney+. Why Disney has been so successful for the last century is plain to see. Generally, strategic thinking and diversity are also expected to contribute to Disney’s future success.
References
Disney – leadership, history, corporate social responsibility. The Walt Disney Company. (2020).
The Walt Disney Company announces strategic reorganization. The Walt Disney Company. (2018).
Soomo Learning. (2020). Critical Business Skills for Success (1st ed.). Soomo Learning.
Snider, M. (2019). Disney takes over Hulu. What’s it mean for cord cutters, binge watchers? Change is coming. USA Today.