Case Study #2: Walt Disney Co. - Netbooks

Asustek Computer Inc. is launching a Disney-branded netbook designed for children six to twelve years old. This product will include child-friendly software featuring the Disney characters while Internet browsers and e-mail programs will have extra filters allowing parents to control online activities. It will be available in late July from retailers such as Toys 'R Us Inc. and Amazon.com Inc. (Wall Street Journal, Asustek to Make Disney Netbook, June 18, 2009).

Disney's diversified brand/product architecture can be leveraged to help them compete in competitive markets, such as computing. Disney currently competes in the interactive gaming space; Competing in the netbook category isn't a stretch for the entertainment organization. Besides enabling more integration opportunities between the consumer services and WDIG groups, this strategy will enable end users (kids between six to twelve years old) grow their knowledge of online skills in a safe and effective way. Also, the end users have ownership of their computing technology, thereby engaging them to maximize the utility of the product for academic, personal and athletic purposes. Asustek grows its brand equity by not only aligning with Disney, but also by up selling the end-user on Asustek laptops, desktops or other hardware as they get older in age and have needs for more complex technologies.