TNC case study on Disney! sorry for any mistakes

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Its a Small World

  • Disney no longer about the theme parks and films
  • Disneys become a global brand.
  • 3rd in the Global Brand legue.
  • In 2006, its income was $32 billion (£19 billion).
  • Empolyees 130,000 people plus 40000 suppliers over 50 countries
  • Started as a small animation studio in California in 1950s
  • Expanded in the 1980s by taking advantage of the satellite and communications revolution.

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Global Activities

  • 230 linked satellite and cable TV companies
  • 6 film/ TV production and distribution compainies
  • 12 publising companies and 15 magazines and news papers
  • 728 shops worldwide, plus galleries abd toy companies
  • 5 record labels and music publishing
  • 2 theather production companies
  • 5 theme parks and resorts and A curise line
  • Sports franchises and teams
  • Multimedia- producing CD-ROMs and e-games
  • Property and human resource agencies
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How Companies Grow

1. By Expansion

Where a company grows because of the popularity of its product

2. By Merger or Takeover

Where a company takes over rivals who are making the same product to increase market share.

3. By Diversifying 

Where companires take over other companies to broaden their product range.

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New Economy- New Heroes

  • Disney is a new economy where creating new ideas has become as important as producing goods
  • Ideas start in the USA but produceds are made overseas
  • In 2006, they made $23 billion (£14 billion) on merchandise alone.
  • Disney operates a just-in time prodution which means they can wait to see the success of a film before production starts, demands fast turn arounds and can outsource, also means products are cheaper however overseas workers are exploited and may use toxic products ban in the USA.
  • Disney are increasing monitoring overseas factories to insure high standards and cancelled contrracts where were being abused but wages are still low.
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The other side of Disney toys

  • Before it closed, the workers in a Bangladesh factory were paid US$0.15 for every US$17.99 Disney tshirt they made.
  • A Chinese toy supplier for Toyko Disneyland closed in 2006 afteer a campaign against working conditions resulting in 800 workers lossing there jobs without compensation after working 12-16 hours a-day and if they didnt met production targets they had to work unpaid overtime and wothout breaks. Those stuffing toys sufferef skin allergies and sore throats from inhaling fine particles from the stuffing
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Disney and Cultural Globalisation

Is The World Becoming 'Disneyfied'?

  • Disney owns Spanish speaking radio statons, foreign language TV channels and a Chinese-language radio station un Hong Kong.

Several Disney films target specific markets:

  • 'Mulan' marked Disney's entry into china
  • 'Hunchback of Notre Dame' was lanched to re-brand Disneyland in Paris
  • 'The Lion King' was aimed at Africa, 'Aladdin' at the Middle East and 'The Resuers Down Under' and 'Finding Nemo' targeted Austrilia.

Disney have a global market but with there characters being Americanised (changing of cultures)

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'Disneyfication' Process

Influence of urban planning

    • Shopping mails often on suburban edge-of-town developments
    • Disney-themed fast food outlets
    • Crowed monitoring with CCTV cameras
    • Resort tourism with everything on site

Media Influences

    • Disney TV Channels broadcast 24 hours a day and Disney owns share in commercail TV channels
    • Chinese state TV uses Disney ESPN for sports coverage

Influencing Governments

    • The US government enforces copyright protection for US compainies like Disney
    • The French government paid $2 billion towards Eurodisney, providing 30000 jobs
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