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The Walt Disney Company has pursued a related diversification strategy by using its movies to create franchises and platforms around its popular cartoon and action movie figures. While competitive content providers have weakened to lower TV ratings, Disney was strengthened through its other businesses including consumer products, interactive consumer products, interactive parks and resorts, and studio entertainment parks, and a strong cable franchise. Disney’s strategy is successful because its corporate strategy, compared to its business level strategy, adds value across its set of businesses above what the individual businesses could create individually. In addition, the corporation has broad and deep knowledge about its customers that is a corporate level capability in terms advertising and marketing. This capability allows it to cross sell products highlighted in its movies through its media distribution outlets, parks and resorts, as well as consumer product businesses.
While many content creating competitors are facing revenue losses due to lower TV ratings, The Walt Disney Company is growing through a related diversification strategy by using its movies to create franchises and platforms around its popular cartoon and action movie figures.
Provide a very detailed evaluation of these related franchises and platforms to support its movie content, and explain why this strategy is successful in creating value.
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