Introduction
The Walt Disney Company is a multinational organization that has specialized in providing entertainment products and media enterprise in media networks parks and resorts and entertainment in studios and products for consumers. In 2006, Walt Disney Company acquired Pixar Corporation to form one big company. The emergent company thereafter was a strong multinational corporation that deals in many products that the two companies used to produce before. Since then the company has been realizing increased growth.
Discussion
Walt Disney Corporation has been on the path to expansion for a long time. The company realized that competition was becoming tough in the modern world and the only way is to grow and expand as it rises to become the market leader. The company has had forward and backward expansions. The ability of the company to expand means that the company is financially stable. Most of the forward expansion strategies were carried out before its acquisition of Pixar, which was a backward expansion. Since its acquisition, the company has grown continuously. The growth can be depicted by the ability of the corporation to internationalize in many countries (‘Walt Disney,’ 2009, p. 3).
According to ‘Walt Disney’ (2009), the company was able to establish a group of manager to foresee its expansion in Europe in 2008. This group of managers saw the company internationalize in countries in Europe. The company provides TV programs for children, it entered into a contract with Jetix Europe in 2008 for the distribution of Walt Disney’s channels and digital contents across Europe, Middle East and Africa. In 2007, Disney corporation ventured into the Russian market with the products of the company being introduced in the country. The company’s international TV licensing arm partnered with the Russian state broadcaster. Additionally, the company provides live action series, animated products and movies that are made for TV. Other forms of growth and expansion are the U.S growth, expansion, the Latin America growth, expansion, and the company’s internationalization strategy in emerging markets. Additionally, the company has been able to venture into Hong Kong, India and Japan markets (Bowser, 2009).
Through the company’s internationalization strategy for growth, it has been able to stabilize its financial stability. The financial performance of Walt Disney has been able to improve significantly over the five-year period with the financial years 2009 experiencing a slow down that can be explained by the global financial crisis. According to ‘Walt Disney’ (2009), the revenue that was realized by the company in the second quarter of 2010 was $10,002. This revenue is higher than the revenue realized by the company in the third quarter in 2006. Financial stability leads to the expansion of an organization in other aspects. Thus, the company has been able to expand it capacity in other fields such as research and development, innovation, employees’ capacity and output (‘Disney Performance,’ 2006).
Conclusion
The company has been able to grow after its merger with Pixar. The growth occurred in terms of internationalization strategies and financial performance. It is now able to manufacture its products innovatively while capturing the consumer tastes and preferences in different international markets.
References
Bowser, J. (2009). Disney appoints six executives for European expansion. Web.
Disney Corporation, (2010). The Walt Disney Company Reports Third Quarter Earnings. Web.
Disney Performance, (2006). The Walt Disney Studios Celebrates Record Performance in 2006. Web.
Source: Msn, (2010). Walt Disney Company. Web.
Walt Disney, (2009). Walt Disney Company Operations & International Expansion. Web.