Disney expanded into television with the ABC produced television program Disneyland followed by the Mickey Mouse Club. Disneyland managed to generate enough financing and public interest for the creation of the outdoor theme par of the same name. Disneyland was a huge success when in opened in 1955, a product of Disney’s commitment to family entertainment and excellence in all facets of park operation. The success of Disneyland put the company on solid financial footing.

After Walt Disney’s death, his brother, Roy Disney, continued the company’s expansion with the creation of Walt Disney World and EPCOT center. Disney World became the top grossing park in the world, pulling in $139 million in its first years. In response to the popularity of Disney World, Disney started an in-house travel company to work with travel agencies, tours, and airlines. They also started bringing live shows such as “Disney on Ice” and “Disney on Parade” to major cities all over the world. Disney expanded its theme parks by building Tokyo Disneyland where it received 10% of the gate receipts and 5% of other sales.

This emphasis on expansion through theme parks had the adverse effect of stifling creativity in the film division. Disney released more sequels instead of new productions. They also created a new film division, Touchstone, to target the teen and adult market. However, from 1980-1983, the company’s financial performance deteriorated. They suffered heavily financial costs to finish Epcot and to develop The Disney Channel for TV. The low point came when a pair of corporate raiders each made offers for Disney with the intention of selling off the assets.

Michael Eisner came to Disney with strong credentials as the COO of Paramount Pictures. He brought with him Frank Wells, Jeffrey Katzenberg, and Rich Frank, each of which would serve important roles as president, chairman of motion pictures, and television respectively. Mr. Eisner laid out a plan to maximize shareholder value through an annual growth target of 20% or above. He tried to manage creativity by fostering tension between the creative and financial forces so that each would meet their targets. Most importantly, he was committed to rebuilding the Disney brand.

Disney began producing shows for network television again and created a syndication operation to sell to independent TV stations some of Disney’s programs. The film division also began a turnaround with 27 out of Disney’s next 33 movies being profitable allowing Disney to capture a 19% share of the total U.S. box office. Disney pursued a combination of strong scripts, less expensive actors, and financial control to ensure profitability and quality.

Disney’s theme parks remained popular and profitable. Under Mr. Eisner’s leadership, they continued to update and expand, spending tens of millions on new attractions. They spent heavily on advertising and other promotional services, raised ticket prices and built new hotels. They also entered the retail industry with the creation of the Disney Stores, promoting the retail as entertainment concept. They established Disney Press and Hyperion Books as publishing lines for children and adults respectively.

In terms of the movie business, Disney released a series of highly profitable animated features including The Little Mermaid, Beauty and the Beast, and Aladdin. They acquired Miramax, an independent production studio making art films. Their home video division (Buena Vista Home Video) achieved success by marketing videos at low prices for purchase by consumer rather than selling to rental stores. It appeared that under Mr. Eisner’s leadership, Disney would be on stable ground for years to come.