1. In the 1990s, what kind of ventures has Disney been engaged in up until the time of the merger with Capital Cities/ABC? How have these ventures affected Disney’s business- and corporate-level strategy?

2. What were the main factors that influenced Michael Eisner’s decisions to take over ABC? Was the Americast venture one of those factors?

3. What were the disadvantages associated with the merger? Do you think the decision to merge with ABC was a good one?

4. What kinds of problems is Disney experiencing as a result of the merger of the two companies?

This case discusses the events that have occurred at Disney in the 1990s, through its merger with Capital Cities/ABC Inc. in 1995, and ends with a discussion of the problems Disney is now facing in managing its new empire. It should be used after Part One of the Disney case to bring students up to date with Disney’s evolving strategy. 

The successful Disney company provides an excellent illustration of the way top managers can go about crafting a successful strategy to create value for their customers and shareholders over time. This part of the Disney case recounts the series of steps in the 1990s that have made Disney one of the three biggest entertainment companies in the world and perhaps the most successful—at least in terms of increases in its share price. Students who are familiar with the Disney name can easily grasp the series of steps that Michael Eisner and his top management team have taken to move Disney into the big time. The entertainment industry is also a fascinating one because it is constantly changing.