Disney

Disney can share activities across its different production firms, which allows it to learn faster and gain success by the knowledge sharing and efficiencies associated with each studio's expertise. What is a risk associate with this approach?

Activity sharing requires careful coordination among businesses in order to be successful.

Consider the graphic in your text that shows four quadrants for value-creating diversification strategies based on operational and corporate relatedness. Based on the information provided about Disney, in which quadrant of the chart does Disney bestfit?

Both operational and corporate relatedness

Disney is able to realize cost savings by sharing resources or transferring core competencies across its businesses. This is known as what?

Economies of Scope

Comcast and Time Warner are both trying to build skills in retail marketing power and franchising to complement their abilities in content and distribution. Which best explains the diversification goals of both companies?

Market power (related diversification)

Disney facilitates skill transfer among its different business units. This is a function of what type of relatedness?

Multipoint

Disney features characters and products in its movies. It is then able to cross-sell these products in its own media distribution outlets and at its parks and resorts. This is an example of what tool?

Multipoint competition

Like Disney, Comcast also owns media outlets and movie studios, as does Time Warner. As they pursue corporate-level strategies, these firms need to be aware that they experience what type of competition, which probably pushes them to seek increased diversification?

Multipoint competition

When Disney adopts a corporate strategy in order to create synergy or achieve economies of scope, it is engaging in what type of diversification?

Related diversification

Disney's corporate strategy is successful because of synergy. What does that mean?

The various businesses within Disney are able to create more value working together than the total of what each business could create on its own

One of Disney's resources is the use of fairy tale themes in the creation of new movies. If Disney chooses to continue with this strategy, why might Disney's ultimate ability to create value for the corporation from this resource be limited?

X The cost to buy the rightAs an intangible resource, fairy tales, by definition, have a limited value.s to use the fairy tales may outweigh the benefits they provide.