Internet Strategist Paper
Introduction
Initially developed by the US Department of Defence for scientific research purposes, the internet has impacted numerous aspects of our daily private and public lives. The increasing use of the internet for social activity creates means through which companies seek to market their products and increase awareness of their presence, vision and activities (Cheung & Huang, 2005).
Though it is indeed a promising field in terms of marketing and sales, not all online marketing endeavours are successful; the main determinant for failure or success is users, not providers. The users are the ones driving success or failure of social and other networks, regardless of the content or platform provided by companies and marketers. Of the most prominent companies using online marketing techniques one can mention Apple- creating an “Apple lovers” forum, Disney- using online blogs to promote "the Hitchhiker’s Guide to the Galaxy” and Coca-Cola sponsored a Sprite site on MySpace (Budden et al., 2007).
The Walt Disney Company, established in 1923, has used a variety of practices to spread and establish its brand image throughout its history. Disney has been able to distinguish itself from its competitors in the media industry by becoming the symbol of quality, wholesome family entertainment. Disney was able to adequately adapt to the changing world of media and entertainment, thus maintaining considerable presence throughout the media outlets.
One of its first endeavours in establishing its internet presence aside from providing online retail services was forming the Go Network on the basis of the recently acquired 'infoseek' platform. The portal had joined other media holdings by Disney, including Disney.com, ESPN.com and ABCNews.co, in addition to joint ventures with major sports organizations such as NBA.com, NFL.com and NASCAR.com.
Go Network was formed as a brand name internet portal, serving to promote its variety of content and services online. In this sense, Disney was a pioneer in the field of utilizing a portal site as an integral component of its larger corporate strategy. Debuting in 1998, the Go portal was initially a success. In 1999 it was ranked as the second portal site, surpassed only by Yahoo!. The portal featured cross-promotional links and connections to Disney-related content and services, and throughout its existence it was ranked in the top ten internet portals (Blevins, 2004).
Disney's online activity compared to its peers
The Walt Disney Company was not alone in venturing out to cyberspace. During the 'dot-com boom' in the mid-1990s, a host of media entrepreneurs started or acquired internet portals, including NBC, acquiring the Snap portal in 1998. Similarly, America on Line (AOL) had acquired Time Warner in 2000, resulting in the collapse of Disney's Go Network, since it was unable to maintain its prominence in the competitive environment.
When examining the use of websites for communication purposes, one should compare the cost-effectiveness of the means and the end. Does the website achieve what it is intended to, in a manner justifying its cost?
The internet is commonly used by companies for purposes of branding and conducting business-to-consumer communications, allowing online purchases of physical and digital commodities. Using the internet allows to extend the consumer pool to an international audience, also serving to extend brand awareness. Companies such as Disney and Time Warner offer a variety of products, including merchandise, movies and digital content. To this extent, the company's website should serve all of these needs, including e-commerce and access to digital content such as movies, games and television shows. By using an integrated platform such as an internet portal, branding and merchandising can be made more prominent.
Among Disney's largest competitors, one can name AOL Time Warner, Sony entertainment, Six Flags Theme Parks, Viacom and Fox Entertainment. AOL Time Warner is probably Disney's largest competitor, including filmed entertainment for the family and featuring network groups such as HBO. In addition, the Warner Brothers' brand, which is part of AOL Time Warner, is featured in the Six Flags theme park. One feature provided by Time Warner that Disney does not provide is internet and cable services, serving as another platform. While Viacom and Fox Entertainment compete with Disney in the media entertainment sector, they do not have theme parks or merchandised brands. Therefore, the best comparison to Disney would be AOL Time Warner.
Thus, Time Warner can take a product such as Pokemon from a comic strip and turn it into a movie, a television series, books and merchandising lines featuring toys and clothing, adding internet-based games and entertainment. Disney can do so with its famous Mickey Mouse brand and others. . Both companies, by including a variety of platforms and communication channels, are making an attempt at 'multiple customer bonding', referring to bonding a customer through a number of relations with the company. The internet is the main channel through which this is done, linking the various services and sub-companies. The internet presence and success is based on a combination of content and branding. By establishing an internet portal, a company provides access to a plethora of content such as news, sports and games under one rooftop. The ease of access and multiple mutual links between the sites serve to further establish the company's branding.
It seems that both conglomerates are successful in creating networks and multiple bonds with consumers. Nevertheless, AOL Time Warner may have the upper hand due to its added value as a broadband internet service provider, as it is able to further link its brands into internet and cable services. Disney may need to find a similar outlet in order to regain its prominence that was lost with the crash of its Go Network.
Disney's communication technologies throughout the years
Some may say that the most prominent development of the Disney brand was the opening of the Disneyland theme park in 1954, alongside airing Disney-branded television series on the ABC network. The weekly television series had a ripple-effect, sparking an interest in the Disney theme park and merchandise. The two were intertwined, to the extent that the television show served as a weekly commercial for the theme park, while the theme park featured rides inspired by the show. Consequently, Disney transformed itself from a cartoon creator to a powerful media conglomerate and one of the most recognized corporate brands worldwide. During the 1980s, Disney further ventured into creating new movies such as the Lion King and the Little Mermaid, while offering old classics on videocassettes. In 1984 the Disney Company opened the first Disney store, later expanding to 730 stores worldwide.
In conclusion, the internet is indeed the marketing tool of the future. With an ever-growing user population and the establishment of e-commerce, replacing traditional storefronts, a large, multinational company cannot survive without establishing a branded and extensive internet presence, extending beyond a simple website. Today's world of intertwined and combined platforms requires the creation of 'one-stop-shops', offering many services and a variety of content for its target audience. Disney's endeavour to establish an internet portal was the first of its kind, but had subsequently failed because it could not keep up with its competition, including AOL Time Warner.
References
Blevins, J. (2004). Battle of the Online Brands: Disney Loses Internet Portal War. Television & new media 5 (3):247 -272.
Budden, C. B., Anthony, J. F., Budden, M. C., & Jones, M. A. (2011). Managing the evolution of a revolution: Marketing implications of internet media usage among college students. College Teaching Methods & Styles Journal (CTMS), 3(3), 5-10.
Cheung, W., Huang, W. (2005). Proposing a framework to assess internet usage in university education: an empirical investigation from a student’s perspective. British Journal of Educational Technology, 36(2), 237-253.
