Disneys Own Iron Man - Assignment Example

What makes this deal a major eye-opener is a change in Disney's outlook as an entertainment studio for young children. Where the acquisition of Marvel introduces Disney to a more mature market which involves teenagers and adults as well. Analysts see the deal in a very positive light as both companies have very popular brands and are equally established. It also brings much curiosity about how Disney plans to bring Marvel characters and mix with Disney characters or make their presence in Disney theme parks and movies.

This article explains an excellent example of a tactic in global market entry strategies which is mergers and acquisitions. Although Marvel and Disney belong to similar national boundaries, their global reach makes them indifferent to culture differences and national boundaries. The article first highlights previous marketing ventures such as acquiring Pixar animated studios, which brought out a more flourishing output for a market of younger children such as, Toy Story and Finding Nemo. Bob Iger then took a major step in acquiring Marvel Entertainment which is also an indirect competitor of Disney.

There were two things that motivate Bob Iger to make a more risky decision. Firstly, Pixar made four releases since the acquisition from Disney that grossed $ 2 billion in worldwide ticket sales. Secondly, Marvel made a major success from the movie Iron Man, increasing their market value through popularity. This popularity allowed marvel to sell off at a significant premium market price, a benefit that would not have come without major successes such as Iron Man and X-Men. The article highlights a major example of how companies assess valuation before striking a major business deal.

One of the possible challenges in the international marketing of Disney comes from its target market. The attributes of Disney's market is young and below or early teenage compared to Marvel and this may clash with Disney's existing brand image as an entertainment production only for children. Disney may choose to take both companies separately, showing no sign of any link between brands of either company, but the acquisition brings immense opportunities. Acquisition of Marvel will allow Disney to reach out to a larger market under their domain without affecting its own brand image.

Speculations claim that Disney may also take the opportunity of taking characters from both the companies and bring out more creative combinations in their coming movies, which projects enormous profits with as much risk. The article concludes however, this is a win-win approach for both the companies as it not only broadens their opportunities for future movies but the benefit of sharing resources for future productions. Global market entry strategies also aid in competing with rival companies, such as in this case, Time Warner.

Time Warner, however, made a major merger with AOL which now makes them the world's largest media and entertainment conglomerate, owing to its large number of subsidiaries. Two of many AOL Time Warner subsidiaries are Warner Bros.