The major strengths for Walt Disney have been its strong diversification strategy. Furthermore, the responsiveness to the markets is something that the management prides on. It is more focused on brining in the brand recognition strategy that has helped the firm attain profitable outcome. Jul 31, 2015 Walt Disney Co.’s Biggest Strength: Diversification Upcoming Star Wars movies and Marvel characters will make for nice additions to Disney's portfolio, but they aren't why you should be buying.
- The Walt Disney Company Its Diversification Strategy In 2014 2017
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The Walt Disney Company positions itself as one of the leading firms in the entertainment, mass media, and amusement park industries. This position is achieved through business strengths that address weaknesses, opportunities and threats (the SWOT factors) in the global market. Disney’s case is an example of successful management of internal and external factors, such as the ones ascertained in this SWOT analysis of the business. The SWOT analysis tool informs managers about the internal factors (strengths and weaknesses) and external factors (opportunities and threats) pertinent to the business. In this business analysis case, The Walt Disney Company’s SWOT factors focus on issues linked to the family-oriented entertainment branding of the business, and on the strategies for addressing international business competition. The conglomerate needs to address the challenges identified in this SWOT analysis. Such efforts must consider changes in the global market, and the strength of the Disney brand in the long term.
This SWOT analysis of Disney sheds light on the issues that investors and management personnel must take into account when evaluating the business. For example, strengths sufficient for exploiting opportunities in the mass media industry present potential success of strategic growth initiatives. The corporation’s strengths and weaknesses (internal factors) must suit the opportunities and threats (external factors) in its international industries. The Walt Disney Company must possess the strengths to withstand the negative effects of weaknesses and threats in its industry environment. This SWOT analysis serves as a guide for understanding such business issues.
![Diversification Diversification](/uploads/1/2/5/7/125741723/552930427.jpg)
Roy from continuing to build on his brother’s dream. In 1971, Walt Disney World opened its doors in Florida. Roy Disney passed away in late 1971. At that point, control of the company passed to Donn Tatum, followed by Card Walker and then Ron Miller (Walt’s son in law).6 Disney continued to expand by adding additional theme parks and media.
Disney’s Strengths (Internal Strategic Factors)
- Oct 18, 2017 Case #7 the Walt Disney Company Its Diversification Strategy in 2014 October 18, 2017 Author: M Syafrin Hady Putra Category: The Walt Disney Company, Walt Disney Parks And Resorts, Disneyland, American Broadcasting Company, Walt Disney Report this link.
- The Walt Disney Company. The Walt Disney Company creates corporate value by harnessing fit across the value chains of its multiple business units. Compete in theme parks and resorts, video entertainment, and consumer product divisions leveraging the Disney.
- Mar 06, 2019 The Walt Disney Company uses diversification as a supporting intensive strategy for business growth. Developing or acquiring new businesses is the typical approach in this intensive growth strategy. For example, through the establishment of the Disney Cruise Line, the company grew by entering the cruise line market of the tourism.
- With its mature executive team, partnerships with Facebook, Twitter, YouTube, and Apple, and effective innovation culture, the company is well equipped to present the viable Omni-channel entertainment strategy. The Walt Disney Company embodies the best industry practices in the wide range of family entertainment services and products.
In the SWOT analysis model, this aspect refers to the internal factors that strengthen business growth. In this company analysis case of Disney, such factors support management strategies to grow the business amid aggressive competition in the global entertainment and mass media industries. For example, business strengths protect the company against the aggressiveness of Comcast Corporation (owner of Universal Pictures), Sony Corporation, Time Warner Inc., and other firms. The following internal strategic factors are the strengths of The Walt Disney Company:
- Popular and strong brand
- Growing portfolio of popular products
- Strong cooperative growth among business segments
Disney has a popular and strong brand, which is among the most easily recognizable in the world. Through this strength, the company presents itself as a decent and family-oriented business suitable for all customers. This internal factor helps manage customers’ expectations, which tend to be positive relative to the reputation of the Disney brand. This SWOT analysis also considers the company’s growing portfolio of popular products as one of the strengths of the business. For example, the variety of the company’s movies and corresponding merchandise and amusement park services gradually increase throughout time. This internal strategic factor contributes to revenue growth, while supporting the company’s popularity. In addition, The Walt Disney Company’s organizational structure facilitates mutually beneficial cooperation among business segments. This strength enables synergistic cooperation to ensure competitive advantage. Overall, the enumerated strengths in this aspect of the SWOT analysis of The Walt Disney Company support long-term growth despite aggressive competition.
Disney’s Weaknesses (Internal Strategic Factors)
This aspect of the SWOT analysis model evaluates the internal strategic factors or weaknesses that function as barriers to business growth and development. The Walt Disney Company’s organizational culture is partly responsible for these weaknesses. Also, branding strategies impose limitations on the multinational business. Disney’s management must address the following weaknesses of the business:
- Limited innovation
- Limited diversification
- Limited expansion of amusement parks
The weakness of limited innovation is associated with Disney’s business strategies. The company does innovate through continuous product improvement. However, rapid innovation involving advanced technologies is limited in the company’s operations. For example, Disneyland theme parks tend to have a reactive rather than an aggressive approach in adopting new technologies. The Walt Disney Company’s generic strategy for competitive advantage and intensive strategies for growth focus on quality and uniqueness of product features, with limited emphasis on rapid technological innovation. This internal factor is a weakness because technological innovation is a differentiator and competitive advantage in the international market. Limited diversification is another weakness considered in this SWOT analysis of Disney. This internal strategic factor is based on the company’s aim of synergy through its business segments. Synergy requires businesses that are closely related, and not diversified businesses in unrelated industries. This aspect of the SWOT analysis shows that addressing The Walt Disney Company’s weaknesses require some changes in core strategies and management approaches.
Opportunities for The Walt Disney Company (External Strategic Factors)
In this aspect of the SWOT analysis, opportunities facilitate business growth. In Disney’s industry environment, these opportunities are external strategic factors that lead to higher revenues in the company’s global entertainment, mass media, and amusement park operations. For example, expansion opportunities can improve the revenues of Disneyland operations. The following opportunities are among the main managerial concerns in growing The Walt Disney Company:
- Technological innovation
- Growth in various industries
- Growth of developing markets
Technological innovation affects all industry environments. This trend is an opportunity in this SWOT analysis. The Walt Disney Company has an opportunity to adopt new technologies to improve its global business. For example, digital technology implementations can improve business efficiencies and output quality in amusement parks and resorts. Also, the external factor of growth in various industries is an opportunity to grow the corporation’s business through diversification and related managerial approaches. In relation, the growth of developing markets is an external strategic factor that creates the opportunity to expand the company’s operations, such as through market penetration in the mass media industry. The opportunities in this aspect of the SWOT analysis show that The Walt Disney Company can grow its revenues through innovation, diversification, and expansion.
Threats Facing The Walt Disney Company (External Strategic Factors)
In the SWOT analysis model, this aspect focuses on the external strategic factors that have potential to reduce business performance. In Disney’s case, these factors are the threats that come with trends related to entertainment firms and other players in the international industry environment. For example, competitive forces involving Viacom Inc. and CBS Corporation can bring down business performance. The Walt Disney Company’s management efforts must tackle the following threats to the business:
- Competition
- Technological disruption
- Digital content piracy
Competition remains the most significant threat relevant in this SWOT analysis of the Walt Disney Company. Aggressive competition is especially observable in the international mass media and entertainment industries. For example, aggressive firms compete by offering movies similar to the ones from Disney’s Marvel Studios. Also, the external factor of technological disruption has potential to reduce the company’s profits. For instance, technological changes in online product delivery in the entertainment and mass media markets continue to shift some profits to businesses that offer online media channels and networks. Moreover, digital content piracy reduces the company’s potential revenues, especially in markets with weak legal protections against this threat. This aspect of the SWOT analysis points to external strategic factors that require Disney’s managers to increase competitive advantages while protecting the business against technological disruption and piracy.
Summary & Recommendations – SWOT Analysis of Disney
The Walt Disney Company Its Diversification Strategy In 2014 2017
Summary. The internal factors enumerated in this SWOT analysis underscore Disney’s strengths to continue growing its business and maintain one of the leading positions in the global market. For example, the company’s strong and popular brand is a major competitive advantage. However, weaknesses impose limits on potential growth. The corporation’s limited diversification is an internal strategic factor that prevents new business ventures in high-growth industries. This SWOT analysis also identifies external factors that present barriers to the company’s growth. Managers need to address the external strategic factor of growth in developing markets, such as through market penetration, to improve The Walt Disney Company’s financial performance. Moreover, adjustments in strategies can address issues linked to competition and digital content piracy in the entertainment and mass media markets.
Recommendations. The recommendations based on this SWOT analysis of Disney are focused on improving business competitiveness and long-term success in the international market. Changes in the company’s management and strategies must focus on using its strengths as internal strategic factors for ensuring growth despite the company’s weaknesses. These strategies must also address the impacts of threats, while exploiting opportunities based on the external strategic factors in the conglomerate’s industries of operations. Focusing on the most significant issues in the industry environment, it is recommended that The Walt Disney Company:
- Further penetrate markets, especially developing markets, to benefit from their high growth rates.
- Further diversify the business, even in limited ways, to increase product scope.
References
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- Jackson, S. E., Joshi, A., & Erhardt, N. L. (2003). Recent research on team and organizational diversity: SWOT analysis and implications. Journal of Management, 29(6), 801-830.
- Leigh, D., & Pershing, A. J. (2006). SWOT analysis. The Handbook of Human Performance Technology, 1089-1108.
- The Walt Disney Company – Disney Named World’s Most Reputable Company.
- The Walt Disney Company – Form 10-K.
- U.S. Department of Commerce – International Trade Administration – Media and Entertainment Spotlight – The Media and Entertainment Industry in the United States.
- Valentin, E. K. (2001). SWOT analysis from a resource-based view. Journal of Marketing Theory and Practice, 54-69.
The Walt Disney Company has a generic strategy for competitive advantage that capitalizes on the uniqueness of products offered in the entertainment, mass media, and amusement park industries. Michael E. Porter’s model indicates that a generic competitive strategy enables the business to develop and maintain its competitiveness in the target market. Disney’s generic competitive strategy is based on making its products different from those of competitors. On the other hand, the corporation’s intensive strategies for growth are focused on developing new products that suit global market trends. The company grows through innovation and creativity, which enable the business to compete against large firms. For example, the company competes against Viacom Inc., Time Warner Inc., Sony Corporation, CBS Corporation, and Comcast Corporation, which owns Universal Pictures. The Walt Disney Company’s generic strategy and intensive growth strategies address such competitive landscape. Through corresponding strategic objectives and competitive advantages, the entertainment conglomerate manages challenges in its industry environment.
This business analysis reflects strategic management efforts. The company’s generic strategy focuses on developing competitive advantages based on innovation in product development. Disney’s intensive strategies are implemented with strategic objectives for maximizing the growth benefits of such innovation. For example, the company grows by introducing technologically enhanced products, such as movies for customers in the international market. In the context of Michael Porter’s model, The Walt Disney Company’s generic competitive strategy and intensive growth strategies are aligned for product-focused development.
The Walt Disney Company’s Generic Strategy for Competitive Advantage (Porter’s Model)
Disney uses product differentiation as its generic strategy for competitive advantage. Michael Porter’s model states that this strategy involves unique products offered to many market segments. For example, the corporation offers its entertainment products to practically every person in the world, especially with the core emphasis on family-oriented programming. In this generic competitive strategy, quality and uniqueness through innovation differentiate the company’s products from competitors. The subsidiary Walt Disney Imagineering Research & Development, Inc. has dedicated teams to ensure the uniqueness of entertainment experiences in the company’s theme parks and resorts. The company’s intensive growth strategies and associated strategic objectives are applied alongside this generic strategy, with emphasis on differentiated competitive advantage to support and manage business growth.
The Walt Disney Company’s generic competitive strategy pushes for product-focused strategic objectives. Such business focus is necessary for supporting product development efforts to differentiate the company from competitors. For example, the strategic objective of developing new augmented reality products adds to the uniqueness of the Disney experience. Based on this generic strategy, another relevant strategic objective is to strengthen competitive advantages through marketing strategies that reinforce the uniqueness of the company’s brand. These marketing strategies are part of Disney’s marketing mix or 4Ps. Also, related managerial efforts contribute to the achievement of Disney’s corporate mission and vision statements in the global market for entertainment, mass media, and theme park products. Brand uniqueness helps in achieving industry leadership. Considering the differentiation generic competitive strategy in Porter’s model, intensive strategies must involve differentiation to grow the business.
The Walt Disney Company’s Intensive Strategies for Growth
Product Development (Primary). Product development is The Walt Disney Company’s primary intensive growth strategy. This strategy involves offering new products in the company’s current or existing markets. For example, the company releases new movies with corresponding merchandise to generate more profits from its target customers worldwide. This company analysis also sheds light on the importance of Disney’s organizational structure, which provides the organizational design to effectively manage product development. This intensive strategy links to the differentiation generic competitive strategy in emphasizing uniqueness in product development. A related strategic objective is to achieve business growth by effectively persuading customers to purchase Disney’s products on the basis of their unique attributes, such as in entertainment experience.
Market Penetration (Secondary). The Walt Disney Company achieves growth partly through market penetration. As a secondary intensive strategy, market penetration enables growth by increasing sales of existing products in the company’s current markets. For example, one of the corporation’s strategic objectives is to use aggressive advertising to increase its revenues from products released in the global entertainment industry. The business strengths shown in the SWOT analysis of Disney contribute to success in implementing this intensive growth strategy. A strong brand based on the differentiation generic strategy creates competitive advantage to attract customers to the company’s products, and to manage customers’ expectations.
Market Development. Market development is an intensive growth strategy that is less frequently used in The Walt Disney Company’s business. In growing the business, this intensive strategy requires the company to introduce its existing products to new markets or market segments. For example, growth is achieved by establishing operations in new markets, such as through a new Disneyland amusement park to capture a regional market. Even with competitive challenges, entry into new markets can increase the company strengths to manage the industry’s competitive forces shown in the Porter’s Five Forces analysis of Disney. A key strategic objective in market development is to use the differentiation generic competitive strategy to successfully introduce the company’s products into new markets.
Diversification. The Walt Disney Company uses diversification as a supporting intensive strategy for business growth. Developing or acquiring new businesses is the typical approach in this intensive growth strategy. For example, through the establishment of the Disney Cruise Line, the company grew by entering the cruise line market of the tourism and hospitality industries. The differentiation generic strategy develops the competitive advantage of new business operations that use the company’s brand. Under diversification, a strategic objective is to manage competitive challenges by developing new businesses that grow the company’s presence and brand popularity in the international market.
The Walt Disney Company Its Diversification Strategy In 2014 Crossword
The Walt Disney Company Its Diversification Strategy In 2014 Crossword
References
The Walt Disney Company Its Diversification Strategy In 2014 Pdf
The Walt Disney Company: Its Diversification Strategy In 2014
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- The Walt Disney Company – Annual Meeting of Shareholders.
- The Walt Disney Company – Form 10-K.
- The Walt Disney Company – The Walt Disney Company To Reorganize Strategic Planning Division.
- The Walt Disney Company – The Walt Disney Studios Moves To Increase Its Disney Branded Output Strategy.
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