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Case | HBS Case Collection | March 2017 (Revised December 2018)

Reawakening the Magic: Bob Iger and the Walt Disney Company

by David Collis and Ashley Hartman

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Abstract

Mickey Mouse, Snow White, and Buzz Lightyear strolled down Main Street at the grand opening of Hong Kong Disney in the fall of 2005, pausing to snap selfies with enthusiastic children in Mickey Mouse ears. Bob Iger, newly appointed CEO of The Walt Disney Company, proudly watched the parade go by, but concerned for the future of the global corporation, he turned to colleagues and asked, “How many characters in this parade were created by Disney in the last 10 years?” There was one. But the languishing Disney animation department was not the company’s only problem. Disney was under pressure: the company had recently delivered poor financial results; ratings at the ABC network had fallen below competitors; Walt’s nephew, Roy E. Disney, had stepped down from the Board after expressing his displeasure with the direction of the company under Iger’s predecessor, Michael Eisner; and Comcast had made a $54 billion hostile bid to take over Disney only one year before. The situation for Disney looked bleak.
Yet by December 2015 the tide had turned. The much-anticipated Star Wars: The Force Awakens was set to become the highest grossing film ever in the U.S. and earn over $2 billion worldwide. Frozen had just surpassed $1 billion in box office to become Disney animation’s biggest success ever. In live action movies, Disney franchises, like Pirates of the Caribbean and Marvel’s Iron Man, had produced multiple blockbuster hits. ESPN, ABC, and other cable and broadcast properties were producing record profits. Attendance was up at Disney parks and cruise ships, while the Shanghai Disney Resort, the company’s third and largest theme park in Asia, was scheduled to open in June 2016. Iger thought back to the Hong Kong Disney parade, reflecting on how far the company had come and the lessons he had learned about reawakening the Disney magic.

Keywords: franchise management; brand management; culture change; business units; acquisition strategy; technological change; Disney; ESPN; cord-cutting; Bob Iger; Strategy; Corporate Strategy; Competitive Advantage; Diversification; Integration; Media; Media and Broadcasting Industry; Entertainment and Recreation Industry; Consumer Products Industry;

Language: English Format: Print 36 pages EducatorsPurchase

Citation:

Collis, David, and Ashley Hartman. "Reawakening the Magic: Bob Iger and the Walt Disney Company." Harvard Business School Case 717-483, March 2017. (Revised December 2018.)

Related Work

  1. Case | HBS Case Collection | March 2017 (Revised December 2018)

    Reawakening the Magic: Bob Iger and the Walt Disney Company

    David Collis and Ashley Hartman

    Mickey Mouse, Snow White, and Buzz Lightyear strolled down Main Street at the grand opening of Hong Kong Disney in the fall of 2005, pausing to snap selfies with enthusiastic children in Mickey Mouse ears. Bob Iger, newly appointed CEO of The Walt Disney Company, proudly watched the parade go by, but concerned for the future of the global corporation, he turned to colleagues and asked, “How many characters in this parade were created by Disney in the last 10 years?” There was one. But the languishing Disney animation department was not the company’s only problem. Disney was under pressure: the company had recently delivered poor financial results; ratings at the ABC network had fallen below competitors; Walt’s nephew, Roy E. Disney, had stepped down from the Board after expressing his displeasure with the direction of the company under Iger’s predecessor, Michael Eisner; and Comcast had made a $54 billion hostile bid to take over Disney only one year before. The situation for Disney looked bleak.
    Yet by December 2015 the tide had turned. The much-anticipated Star Wars: The Force Awakens was set to become the highest grossing film ever in the U.S. and earn over $2 billion worldwide. Frozen had just surpassed $1 billion in box office to become Disney animation’s biggest success ever. In live action movies, Disney franchises, like Pirates of the Caribbean and Marvel’s Iron Man, had produced multiple blockbuster hits. ESPN, ABC, and other cable and broadcast properties were producing record profits. Attendance was up at Disney parks and cruise ships, while the Shanghai Disney Resort, the company’s third and largest theme park in Asia, was scheduled to open in June 2016. Iger thought back to the Hong Kong Disney parade, reflecting on how far the company had come and the lessons he had learned about reawakening the Disney magic.

    Keywords: franchise management; brand management; culture change; business units; acquisition strategy; technological change; Disney; ESPN; cord-cutting; Bob Iger; Strategy; Corporate Strategy; Competitive Advantage; Diversification; Integration; Media; Media and Broadcasting Industry; Entertainment and Recreation Industry; Consumer Products Industry;

    Citation:

    Collis, David, and Ashley Hartman. "Reawakening the Magic: Bob Iger and the Walt Disney Company." Harvard Business School Case 717-483, March 2017. (Revised December 2018.)  View Details
    CiteView DetailsEducatorsPurchase Related
  2. Case | HBS Case Collection | January 2019 (Revised October 2019)

    The Walt Disney Company: The 21st Century Fox Acquisition and Digital Distribution

    David J. Collis

    case describes the acquisition of 21st Century Fox by the Walt Disney Co. and the subsequent launch by DIsney of three streaming channels to compete with Netflix..

    Keywords: corporate strategy; mergers and acquisitions; Disney; Corporate Strategy; Mergers and Acquisitions; Media and Broadcasting Industry;

    Citation:

    Collis, David J. "The Walt Disney Company: The 21st Century Fox Acquisition and Digital Distribution." Harvard Business School Case 719-445, January 2019. (Revised October 2019.)  View Details
    CiteView DetailsEducators Related

About the Author

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David J. Collis
Adjunct Professor
Strategy

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More from the Author

  • Case | HBS Case Collection | January 2019 (Revised October 2019)

    The Walt Disney Company: The 21st Century Fox Acquisition and Digital Distribution

    David J. Collis

    case describes the acquisition of 21st Century Fox by the Walt Disney Co. and the subsequent launch by DIsney of three streaming channels to compete with Netflix..

    Keywords: corporate strategy; mergers and acquisitions; Disney; Corporate Strategy; Mergers and Acquisitions; Media and Broadcasting Industry;

    Citation:

    Collis, David J. "The Walt Disney Company: The 21st Century Fox Acquisition and Digital Distribution." Harvard Business School Case 719-445, January 2019. (Revised October 2019.)  View Details
    CiteView DetailsEducators Related
  • Working Paper | HBS Working Paper Series | 2018

    The Limitations of Dynamic Capabilities

    David J. Collis and Bharat Anand

    The concept of dynamic capabilities draws its theoretical basis from two classic traditions within the strategy field—the resource-based view of the firm (RBV) (Wernerfelt, 1984) and market positioning (Porter, 1996). A dynamic capability qualifies as a source of sustained heterogeneous firm performance within the RBV framework because it arises from embedded organizational routines that accumulate in a path dependent process—the “stock” explanation of durable advantage (Barney, 1991). Because such a dynamic capability allows a firm to continually reposition itself in product market space, it satisfies the “flow” explanation of current competitive advantage by ensuring that the firm always maintains a wider gap between willingness to pay and cost than competitors (Brandenburger and Stuart, 1996). Indeed, dynamic capabilities seem to give rise to the enviable ability to “always have a competitive advantage in an attractive industry” and so continually deliver superior financial performance regardless of external circumstances.

    Keywords: dynamic capabilities; Business Ventures; Performance; Competitive Advantage;

    Citation:

    Collis, David J., and Bharat Anand. "The Limitations of Dynamic Capabilities." Harvard Business School Working Paper, No. 20-029, September 2019.  View Details
    CiteView DetailsSSRN Read Now Related
  • Working Paper | HBS Working Paper Series | 2019

    The Strategic Management of Execution

    David J. Collis

    “Tell me David, is it better to have a great strategy poorly executed or a so-so strategy really well executed?” The age-old question suggests there is a fundamental tradeoff between strategy and execution. The tone in which it is asked typically flags that the questioner already knows the answer—the superiority of execution over strategy. But is this really true? Does, to borrow a phrase, execution eat strategy for lunch?

    Keywords: strategy execution; Strategy; Management;

    Citation:

    Collis, David J. "The Strategic Management of Execution." Harvard Business School Working Paper, No. 20-026, September 2019.  View Details
    CiteView DetailsSSRN Read Now Related
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