Touro University International
Kevin P. Beck
BUS 401 - International Business
Module 1 Case Assignment: Disney's E-Commerce Strategy
Professor - Dr. Paul Watkins
If the Walt Disney Company expects to achieve success as it pursues international markets, effectively integrating the Internet and e-commerce into its global strategy must become one of its prime considerations. In an article published on the website Forbes.com, Disney CEO Michael Eisner indeed states: "The Internet continues to be a central focus of our company's business strategy". This paper will address three key points: why Disney must expand its use of e-commerce to gain leverage in the global market, how it can be done, and what the potential benefits are. Let's begin by discussing why Disney should place increased emphasis on e-commerce.
If it expects to remain competitive and attract new business, Disney should strive to raise its position in the e-commerce arena. This is an important challenge because, as a major media company, it lags far behind its competitors when it comes to controlling Internet user minutes. As of June 2001, Disney provided less than one percent of online usage minutes while top competitor AOL/Time-Warner captured a sizable 32 percent share. Based on those statistics, it's easy to conclude that the company's ability to generate worldwide business to business (B2B) and business to customer (B2C) relationships is somewhat diminished due to its weak Internet presence. Another reason Disney must boost its use of e-commerce is because it cannot feasibly build tourist attractions in every country in the world due to political, cultural and or economic barriers. However effective use of the Internet would afford the company easier penetration of most markets and profit even in regions where parks can't be built. It's clear Disney needs to enhance its e-commerce and Internet position. But how should the company go about it?
This is a preview of the whole essay
Peer Reviews
Here's what a star student thought of this essay
Quality of writing
The report could include a screenshot to allow the examiner to visualize the student's writing. The writing is quite formal, and the writing shows a clear understanding of the student. This is quite good, as this will show the examiner that the student understands each aspect of the report and has an good knowledge of the subject.
Level of analysis
The report describes how eCommerce reduces overheads, although I feel that this isn't balanced. The report only mentions the benefits in terms of finance of eCommerce. The report should include something on the lines of 'With the cost benefits, there are some costs which are going to increase on a short-term basis. As the company will need to employ additional staff members, as the current work force has a lack of skills'.
Response to question
In summary, the report is of high quality, as the report states how Disney's eCommerce presence is lacking and gives possible improvements. There's a few little points which could make the report better, but there are quite small, and I believe that even without the small improvements the report would be awarded high marks. The student understands the importance of the Internet, and how business should embrace the use of the internet. In addition, the student states how the website currently is loosing market share due to their competitors which have adapted more quickly. Further down the report, this mentions how the purchasing of another company, could allow their eCommerce site increasing it's on-line present.