\chapter{Recommendations}

The question Disney is currently facing concerns the future direction of the
company. The profitability and stability of the theme parks give Disney an
advantage over all of its competitors. Owning one of the highest rated
television networks allows the companies to more easily advertise and market
their products and services. Disney's top priorities should be to ensure the
future success of these two commodities. Innovation is the key to achieving
this goal. The theme parks must continue to be improved and updated. The
fast-pass system was a great first step and Disney should add this feature to
more of its attractions. Park and Hotel expansion is a must if Disney wishes
solve the problem of overcrowding. ABC executives must build upon the success
of Who Wants To Be A Millionaire. They should continue to search for new and
exciting shows both in the U.S and abroad.\\

Studio entertainment has been a vital part of the Disney success story. Disney
always strived to produce innovative films for the entire family. These films
were very successful and made great deals of money. However, Disney got greedy
and began to produce an abundance of movies. The result was low quality
pictures, many of them with actors that had never before been heard of.
Understandably, these pictures were box office busts. Disney must return to
their roots and once again produce high quality family films that are driven
by Hollywood's most influential stars. This will enable Disney to turn studio
entertainment from what has been called "a major drag" back into a box office
powerhouse.\\

The AOL-Time Warner merger is certainly a threat for Disney's Internet and
television interests. The GO network has been nothing short of a disaster.
Disney acquired the InfoSeek Company in June of 1998, merged it with the GO
network, and hoped it would help them compete with the likes of AOL, Yahoo,
and Lycos. However, clashing ideas about the future of the site existed between
Disney and the remaining members of InfoSeek. The InfoSeek members promptly
left Disney and the GO network continued to lose money. In order to gain a
competitive advantage on the Internet, Disney should attempt to create a
merger with Yahoo or Lycos. Both of these companies will also be negatively
affected by the AOL-Time Warner merger and will need additional capital to
retain their market share. Disney could provide this capital and both companies
would profit. If a merger is possible, Disney must remember the mistakes of
the InfoSeek acquisition and avoid over managing their Internet label in the
future.\\

Finally, Disney must change the way it manages its overseas ventures. It is
unacceptable for a company that is considered to be worldwide, to earn 80\% of
total revenues in the United States. Managers in Burbank California do not know
the interests and needs of consumers in Europe or Asia as well as do the people
who live in those areas. Disney must stop micromanaging these foreign
operations and allow their managers in overseas locations to take a more
active role in the decision making process. This concept should be essential
 to the creation of the new theme park in Hong Kong if the company wants to
avoid the problems and pitfalls that it faced with the introduction of Euro
Disney.