The Walt Disney Company: Horizontal Integration and Synergy

 “Horizontal integration is a strategy that involves a company merging with or taking over another firm at the same stage of production. Horizontal integration gives the acquiring company more resources and a larger market share. In recent years, The Walt Disney Company engaged in horizontal integration by purchasing several sources of creative material, including Marvel Comics, Lucasfilm and Jim Henson Studios. These purchases allowed them to bring in properties such as "The Avengers," "Star Wars" and "The Muppets" into their libraries.” (Hanks, 2015)

By employing Horizontal Integration, The Walt Disney Company is able to gain profit by producing more across a wider platform of forms and genres such as film, television and print media. For example, Disney produce animated, children's films through Pixar Studios but more action/adventure live action films from Walt Disney Pictures.

As well as horizontal integration, The Walt Disney Company is able to increase profits and public awareness through the use of synergy. Synergy is the model of business whereby a company distributes its products over multiple different platforms. In terms of Disney these platforms include music labels, television channels and broadcasters, film production companies, shops, amusement parks as well as many, many more.

Such as:

Film/Feature Production:

•Walt Disney Pictures

•Touchstone Pictures

•Pixar

•Lucasfilm

•Marvel

•The Muppets

•DreamWorks (distribution)

Music:

•Walt Disney Records

•Hollywood Records

•Disney Music Publishing

Destinations:

•Disneyland/Disneyworld worldwide

•Disney Cruise Line

•Disney Vacation Club

Theatrical Group:

•Disney Theatrical Productions

•Disney on Ice

•Disney Live

 Consumer Products:

•Disney Store

•Disney Baby

•The Baby Einstein Company

Books:

•Disney-Hyperion

•Marvel Press

Broadcasting:

•ABC Television Network

•ABC Family Worldwide

•Live Well Network

•A+E Networks (50%)

•Disney Channels Worldwide

•Radio Disney

•Disney Television Animation

•ESPN Inc. (80%)

•Hulu (32%)

•A+E Networks (50%), includes Lifetime and History

 Online/Interactive:

•Disney Infinity

•Disney.com

•Maker Studio

 Comics:

•Marvel

•Disney Comics

(August, 2014)

References:

J. AUGUST. (2014) Disney’s corporate synergy, 1957 and today. [Online] Available at: http://johnaugust.com/2014/disneys-corporate-synergy-1957-and-today [Accessed on: 14^th October 2015]

G. HANKS. (2015) Examples of Differentiation & Integration in a Company. [Online] Available at: http://smallbusiness.chron.com/examples-differentiation-integration-company-71759.html [Accessed on: 14^th October 2015]