This is a response to Monica Moran’s post about how Disney became popular and how it remains popular.
First of all I would just like to say that I as well am a huge Disney fan, having been to the theme parks half a dozen times and I believe I have watched nearly every single animated Disney movie. Several Disney movies such as Alladin, The Lion King and Toy Story rank in my top ten favorite movies of all time.
Monica states that Disney became successful first through Mickey Mouse, and then through product extension strategies. I am going to argue that these product extension strategies in fact came much later, and did not build Disney its successful empire. Instead, the product extension strategies simply helped an already popular company.
One of Disney’s first cartoons did star Mickey Mouse (the very first being the silent short Alice in Wonderland), and this did gain Disney some recognition and popularity. However, Disney did not immediately try to expand on this success. Instead, they created a huge three-year project that, after it was completed, ushered in a new era of film, along with making Disney a household name. That project was, of course, Snow White and the Seven Dwarfs.
Only after this massive success (and subsequent animated movie hits) did Disney begin to branch out into areas outside of film, such as the Disneyland theme parks. This is a huge difference from immediately branching out after the somewhat small successes of Mickey Mouse cartoons. By waiting until they were very popular, Disney ensured that they would not overextend themselves by trying to target outside of their market segment, and possibly fall into financial distress.
I believe that it is important to remember that before you think of expanding, make sure your foundation is very solid. Product and service quality always come first.