A Property, Market and Class-based Foundation of Disney Essay

A Property, Market and Class-based Foundation of Disney - Essay Example The Walt Disney Corporation conforms to this model suggested by Rifkin. Firstly, it is akin to a gated, networked community where a virtual reality is created through networking. Secondly, the diversification of its capital and business interests – the shift away from property into internet-based leasing, outsourcing and primarily marketing. The third aspect is the shifting emphasis placed on cultural and intellectual capital as opposed to material goods. Rifkin’s theory is grounded in the basic premise that in the age of access, the foundation of commerce is shifting away from the property and out into cyberspace. The Hollywood organizational model is a manifestation of this phenomenon. It consists of individual productions where actors, directors, production personnel, investors and a host of ancillary talent comes together for a short period in order to take advantage of an opportunity offered by a particular market, only to dissolve again once the production is completed (Rifkin 28). For subsequent productions, different elements will be brought together. The idea behind this is a partial synergy of sorts wherein capitalistic self-interest in a networked economy is completely governed by the prevailing market at a particular time.This principle may be seen to operate in the case of Disney, especially in its mergers with other companies that have been carried out at strategic times. Disney’s latest acquisition of a c omputer animation company Pixar is only one of a long line of mergers and strategic partnerships that have helped Disney to adapt successfully to changes in the environment. The creative elements supplied by Pixar when working in synergy with the financial clout of Disney have served to produce a superior product.The strategic move of acquisition of Pixar is a response to the technological environment where success is inherent in intellectual products that are a source of revenue through the provision of the license to access. In a similar manner, Disney and ABC television have merged, in order to strategically exploit the combined market that belongs to both companies through one entity.