Leadership Lessons from Bob Iger and Reed Hastings

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Leadership Lessons from Bob Iger and Reed Hastings
Introduction
Leadership is often tested under challenging circumstances where leaders' decisions can either make or break the organization. This analysis is based on two CEO's Bob Iger and Reed Hastings' leadership styles and their strategies for transforming their businesses.
1. Leadership of Bob Iger
Bob Iger was not the founder of Walt Disney, but he created a long-lasting impact on the organization through his leadership strategies. Bob Iger is one of those people that have changed the course of the Disney Company. During his 15 years, his Company acquires many platforms, including Pixel, Marvel, and Lucas Film. He was able to add new dimensions to the company and Television industry which is believed to attain maturity phase (Snyman & Gilliard 1). The television industry was witnessing the phase of animation during 1990 when Bob Iger took over the Company. He introduced new animations and creativity to the existing cartoons.
1 Focus on Adaptation.
Disney company adapted its business model with the changing times and started its streaming business under streaming plus. Under Bob Iger's leadership, the Company developed business lines that were more suitable for changing consumer demand. The entertainment industry's digitalization has created the demand for online streaming services, which have various options. Disney offers four different streaming services simultaneously with unlimited download options (Chen et al.). Disney has created a bunch of subsidiaries under its umbrella for streaming services. From Marvel Studios to 20th-century fox, the content is unlimited. Disney's unique content is only for its streaming services, unlike other platforms like Netflix and Hulu cast.
2 Drive for Innovation.
Disney's platform has always been famous for its unique animated movies that the Company made for children. In recent years, however, Disney has produced movies on various topics and for different audiences. Disney has been experimenting with sci-fi and has used star power to dominate the big screen (Acuna). Disney has also remake some of its previous animated movies and has generated soaring revenue from this strategy. The remake of Lion King is an example of Disney remakes. It brings another generation of audiences to the cinema by revitalizing the blockbuster of its time using new technology.
1.3 Strategic Moves.
Bob Iger took many strategic decisions in the right direction; the modernization of Disney's theme parks was among them. One of the primary sources of company revenue is its theme parks which contribute to around 30% of its value. Disney has leveraged technology to generate higher per capita revenue from each of its parks. To maximize the consumer experience, Disney uses a mobile app that visitors can use to order food and beverages (Forbes). The Company's largest market share comes from its movies that Disney has used efficiently to gain market share. The Company took the strategy of acquiring 20th century Fox to increase its market share and has been able to capture around 38% of the U.S movie market share (Whitten). The acquisition of close competitors is one of the strategies effectively used by the Company to boost its market share and competencies. Disney was able to diversify through acquisitions of smaller players.
Disney has embraced and flourished on new technologies over time. The Company has created a Technology innovation group that integrates new technologies into Disney's products. The Accelerator program of Disney and its Open-source network are other sources to boost creativity through collaboration. The embracing of new technology has helped in keeping the company relevant in modern times.
1.4 Leadership Traits.
Bob Iger has exhibited several traits of successful leaders and has utilized multiple strategies for changing the course of the Company. When Iger took charge of the Company, it was struggling with maintaining its reputation and market share. One of the first strategies of Bob Iger was to focus on creating quality content. In addition to that, the acquisition of new technology was considered mandatory by Bob Iger, for which he took the acquisitions path. Pixar, Marvel, and Lucas's films were all acquired under Bob Iger's leadership (Denning). The transition of the Company's culture and successfully integrating new companies in the business is the ultimate leadership test and is crucial for realizing synergies.
1.5 Mistakes Along the Path.
Although the Company always focuses on creating quality content, some mistakes were made by focusing on quantity rather than quality. Bob Iger admits that releasing many Star Wars movies was one of the Company's mistakes (BBC). This focus on quantity leads to lower returns and performance by these movies than the anticipation. Despite his few mistakes, he turned around the Company and enabled it to survive in the digital era through his leadership.
1.6 Turning Points of Career.
The turning points for Disney under Bob Iger's leadership were the acquisitions he pitched right after taking charge. The adaptation to the new technology was undoubtedly the right direction for the Company, and Iger could take the necessary steps at the right time. He also took active risk-taking into new ventures, which was crucial for the creative industry's survival (Mullaney). Another essential element of Bob Iger's leadership is the authenticity and integrity for affecting his Company's very fabric.
Shifting of Disney Company from becoming a conglomerate to a sole content creator was also done under Iger's leadership. Unlike rivals Comcast and Verizon, Iger did not want Disney to focus on distribution channels (Mullaney). The lead for producing quality content set the standards to maintain the Company's reputation in the market. The employees become focused on creativity, which was the right direction for Disney as content creation.
Another turning point of his career was during the pandemic of COVID-19, which halted theme parks' business. Bob, who was planning to retire before the pandemic, stepped back as the CEO to save the business's image that he spends building his entire life. He decided to curb the speculations regarding his departure, especially during a global crisis. Bob decided that leadership transition should be smooth sailing and not be done when business is already under pressure (Mullaney). It was, indeed, a bold decision because the leaders usually prefer leaving a venture at the peak of their career. An ordinary leader would never think of putting his reputation at stake by continuing during the adverse turn of the events when they have an option to leave with a trail of success behind them. Hence, Bob's response to the situation was exemplary.
2. Leadership of Reed Hastings
The case of Reed Hasting is not so different when studied in revolutionizing the entertainment industry. After the rise of online content, the demand for traditional television networks was declining. Reed Hastings saw the opportunity in the new era where consumers prefer to watch the preferred content as per the timing suitable for them rather than relying on the cable network televisions. Traditionally Netflix was not involved in creating new content; instead, it relied on previously made content to gain subscribers (Schleier).
2.1 Focused Creativity.
Netflix is the Company that has revamp video streaming by creating a plethora of new content. The Company is famous for creating novel shows and its unique culture that fosters creativity among employees. The breakthrough of Netflix came with its 30 million dollar deals with Starz in 2008 when the Company was allowed to stream its live content, and it never looked back (Schleier). Netflix has introduced the binge-watching culture, i.e., customers have access to all episodes of their favourite shows simultaneously. Access gives consumers autonomy and power over their time and choices. The Company has also provided the consumers' variety from the number of genres available on the Streaming, making it the number one choke from t...