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Case Study Example

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Economies of Scope is a term commonly used in the corporate world in the definition of the manner in which an organization reduces the total costs of production by dealing with the production of different goods. Disney incorporates this concept by not only majoring in the…
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Disney and Sharp Corporation Case Study Economies of Scope is a term commonly used in the corporate world inthe definition of the manner in which an organization reduces the total costs of production by dealing with the production of different goods. Disney incorporates this concept by not only majoring in the production of media cartoons and animations but by also ensuring that it produces other merchandise associated with the commodity and this merchandise is such as dolls and funhouses where kids can visit for a fee. The increased production has helped the company accumulate enough money to focus on the diversification of the products that it has.
Various advantages and negativities come from the company engaging in television and cable networks. One of the advantages that come from this is the fact that the company gets distribution advantages where the products market themselves, as opposed to relying on middle persons. Another advantage is that the success of other peoples’ films earns the company much money without having worked on them. The major disadvantage that comes from this is the inability to retain high profit margins in the ever-changing technology world. Moreover, the people may lose taste in a particular film produced by the company and consequently have its ratings decrease.
The value creating decision for Disney in the acquisition of Marvel is through strategic planning that in this case involved the company management aiming to increase the profit gained by the management and consequently grow further. Some of the challenges that the managers face is the lack of coordination that may lead to some shows lacking flavor anymore to the audience and thus reducing ratings. Another challenge involved low quality products due to lack of specification.
Case Study 2
Sharp Corporation ought to consider many factors when determining the place to locate the production of LCDs. One of the factors that the managers ought to consider is regarding the target market for the commodity. The Targeted market ought to be where the company sets up its company basis. After changing the sell in Japan strategy, the company is bound to have an increase in the number of customers and this is owing to the difference in consumer preferences because they will feel as part of the company as currently they feel that the company is too localized.
There are many alternatives to entry in different countries if the company does have a change in the location of some of its products. One of the entry methods that the company has is using branches where it can set up branches in the new countries that they ought to play in rather than directly shipping. A better alternative, however, is merging with an established supply company in a new country.
President Katayama seeks to show that Sharp Corporation is a company that ought to utilize the knowledge that it has on the market in order to understand strategic areas where it can introduce its firms. The strategy is better than the utilization of physical resources that are subject for replenishing and other negative factors. Read More
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