Dynamic swot

http://www.slideshare.net/greg1510/walt-disney-an-analysis-of-the-strategicchallenges
http://www.slideshare.net/callieunruh/strategic-management-walt-disney-casestudy
http://www.slideshare.net/amrithasiddharth/global-business-strategywalt-disney
http://www.slideshare.net/azierahrashid/walt-disney-ppt
https://www.strategicmanagementinsight.com/swot-analyses/walt-disney-swotanalysis.html

Opportunities
Expanding movie
productions to new
emerging economies
Build a more eco-friendly
image
Benefits from IT advances
& mobile gaming
Growth of paid TV
industries in emerging
economies

Threats
Intense competition
Increasing piracy
Change in consumer
preferences and tastes
Continuous need for
technological update

Strengths
Brand reputation
Highly diversified
portfolio
Strategic & tactical
acquisitions
Strong financial
position with cash
surplus
Loyal customers
Top management
SO-Strategies
Develop more mobile
game applications
involving Disney
characters- (s4o3)
Build a multinational
management team
(one central team to
oversee international
happenings) (s6o1)
Collaborate with WWF
so as to promote
environmental issues
(s1o2)
ST- strategies
Offer discounts to all
members of Disney
fanclubs (s5T1)
Expansion in Brazil
and Indian markets
through Alliances and
Synergy (s3,4
Monthly consumer
reach and update on

Weaknesses
Heavy dependence
on revenues from
North America
High cost of
operations
Few oppns. for
significant growth
through acquisitions
Approaches anti-trust
law limits
WO Strategies
Digitilisation of
operations to lower
costs and utilise
technology (w203)
Can explore into
untapped markets
such as Asia pacific,
Latin America and
Europe* (w1o1,4)

WT Strategies
Take advantage of
operations that take
place in NA by
investing in
technology & R&D for
that area.

preferences via online

polls

* http://www.statista.com/statistics/193263/revenue-of-the-walt-disneycompany-in-different-regions/
http://www.inaglobal.fr/en/television/article/disney-channels-out-conqueremerging-markets
http://www.forbes.com/sites/greatspeculations/2012/09/26/disney-has-ampleopportunity-for-emerging-markets-expansion/#64bdd2857de9

Brand reputation. Walt Disney brand has been known for more than 90 years
in US and has been widely recognized worldwide, especially due to its Disney
Channel, Disney Park resorts and movies from Walt Disney studios. The company
is perceived as the primary family entertainment provider and was the 13th most
valuable brand (valued at $27.4 billion) in the world in 2012.
Diversified businesses. The business operates five different business
segments: media networks, parks and resorts, studio environment, consumer
products and interactive media. These companys segments are operated online
and offline, in many different economies and are generating their income using
different business models. Due to such diverse operations, Disney is less affected
by changes in external environment than its competitors are.
Competency in acquisitions. One of the strongest sides the company has is its
competency in acquisitions. The Walt Disney Company has acquired Pixar
Animation Studios in 2006, Marvel Entertainment in 2009 and Lucasfilm in 2012.
The former 2 acquisitions have already proved to be very successful in terms of
revenue and profit growth. The third acquisition is expected to be just as
successful because Disney has acquired rights to all of the Lucasfilm previous
works including Star Wars. Few other Disney competitors have had such record of
successful acquisitions.
Cash reserves in surplus What happens when your cash inflow is high and it
rarely drops? Disney is a company known to have a cash surplus. It is regularly
involved in Mergers and acquisitions and it is increasing its presence in the world
so as to increase brand presence in developing markets.
Loyal customers: customers who travel all across the world to just visit the
Disney land
WEAKNESSES

Heavy dependence on income from North America. Although, Disney

operates in more than 200 countries, it heavily depends on US and Canada
markets for its income. More than 70% of the business the revenues come from
US alone, while the major Disneys competitor News Corporation receives less
than 50% of revenues from US, making it less vulnerable to changes in US
market.
Few opportunities for significant growth through acquisitions. The Walt
Disney Company is the largest entertainment provider in the world and has
become so due to acquisition of competitors. The last Disneys acquisition had to
be approved by Federal Trade Commission so that the company wouldnt have to
deal with antitrust problems. This means that the size of the Disneys business
has become a concern for the government due to significant market
concentration and that the company has very few opportunities to acquire
competitors. Otherwise, Disney may become a subject to antitrust laws.
OPPORTUNITIES
Expansion of movie production to new countries. Disney has an
opportunity to expand its movie production to such countries as India or China,
where movie production industries have developed good quality infrastructure.
This would result in lower movie production costs and more localized movies for
India and Chinas markets.
Growth of paid TV industries in emerging economies. The Asia Pacific
region accounted for more than 50% market share of the world pay TV
subscribers (394 million) in 2011. It was expected to grow to more than 55% by
the end of 2016, where China would account for more than 27% of the market.
The similar growth is expected in India as well. Disney Company has already
entered these markets and should continue to strengthen its position there to
benefit from such high industry growth.
THREATS
Intense competition. Disney operates in very competitive industries such as
media, tourism, parks and resorts, interactive entertainment and others. The
competitive landscape changes quite drastically in the media industry, where
news and TV go online and new competitors with new business models compete
more successfully than incumbent media companies. Disneys parks and resorts
business segment also receives strong competition from local competitors who
can offer better-adapted product. This results in growing competitive pressure for
Walt Disney Company.
Increasing piracy. The advancements in technology allow copying, transmitting
and distributing copyrighted material much easier. With an increasing number of
internet users and the speed of internet, this poses a great risk to Disneys
income, as fewer people would go to watch movies in a cinema or buy its DVD,
when its freely available online.
------------------------------------------------------------------------------------------------------------------------------------BUSINEES LEVEL STRATEGIES-

Cost leadership, product differentiation

CORPORATE LEVEL STARTEGIEShttp://www.evankropp.com/wp-content/uploads/2013/10/SWOT_Anlaysis_Disney3.pdf

Integration- vertical and horizontal

Corporate diversification
Strategic alliances
Mergers & acquisitions
Internationalisation

BUSINESS LEVEL STRATEGIES

Cost leadership
Product diffDisney has additional brands such as ESPN (one of the biggest sports channel in
the world), Miramax, touchstone and pixar
Walt Disney Company is famed for its creativity, strong global brand, and
uncanny ability to take service and experience businesses to higher levels. In the
early 1990s, then-CEO Michael Eisner looked to the fast-food industry as a way to
draw additional attention to the Disney presence outside of its theme parks its
retail chain was highly successful and growing rapidly. A fast-food restaurant
made sense from Eisners perspective since Disneys theme parks had already
mastered rapid, high-volume food preparation, and, despite somewhat
undistinguished food and high prices (or perhaps because of), all its in-park
restaurants were extremely profitable. From this inspiration, Mickeys Kitchen
was launched. The first two locations were opened in California and in a suburb
of Chicago, adjacent to existing Disney stores. Menu items included healthy,
child-oriented fare like Jumbo Dumbo burgers and even a meatless Mickey
Burger. Eisner thought that locating each restaurant next to existing Disney
stores was sure to increase foot traffic through both venues. Less than two years
later Disney closed down the California and Chicago stores and shuttered further
expansion plans. Eisner cited overwhelming competition from McDonalds and
general oversaturation in the fast-food industry as the primary reasons for
closing down the failing Mickeys Kitchen.
CORPORATE LEVEL STARTEGIES
Disney is not just an animation producing company; it is a corporate that
includes media network, theme parks and resorts, studio entertainment,
consumer products, and interactive media. It is highly diversify in the
entertainment industry. Disney is not just a brand for children, instant of children,
the target customer is the whole family. The movie Disney release every year, it
is always the popular movie choice for family with younger children. The Disney
Theme Park is always the famous places for family with their children. What

Disney is trying to deliver to their customer is that Disney is not just a brand for
children it is a brand for every family.

http://www.fastcodesign.com/3048046/infographic-of-the-day/the-secret-to-waltdisneys-corporate-strategy
https://storify.com/AntaunM/vertical-integration-walt-disny
Conglomerization takes place in the Walt Disney Company with ABC, ESPN,
Disney Theme Parks, Pixar, Marvel, and Radio Disney.
Horizontal integration is when Disney develops material that is not directed
toward their target market. This allows Disney to expand business and create a
new target market giving them more profit. An example of this is the purchase of
Marvel with the film Iron Man. Vertical integration is when Disney has to
produce, market, distribute, and create merchandise for their product. An
example of this can be seen thanks to the High School Musical series. Disney
produced it in their studios, marketed it on Disney Channel and ABC News by
interviewing the cast. Their merchandise included, apparel, purses, make-up, and
later, a theatrical version of High School Musical. Synergy can include the Lion
King film series. It had have three sequels, a hit Broadway play, the soundtrack
for the play and the first film was available but they both also had shirts, cups,
and other souvenirs.

- Horizontal Integration: Walt Disney owns many studio entertainment

companies, consumer product companies, and media networks. Disney uses
horizontal integration to promote products, gain more interest and separate itself
from competitors. Disney also applies this strategy to increase its presence and
market awareness through crosspromotions. In addition, Disney continually
expands beyond the family entertainment base, to many more mainstream
outlets (Jin).
- Vertical Integration: Walt Disneys many sub-companies allow it to plan,
produce, advertise, and distribute all of its products on its own, without relying
on other companies services, thereby better controlling quality, content and
costs. Collaboration among business sectors with the same corporate culture &
value make the communication and production more efficient and effective
(Strategic Management).
Diversification: Walt Disney has focused on market diversification for years. The
company covers a wide variety of products and services; its movies, shows,
themes parks, music, TV, radio and merchandise offer a range for all tastes,
cultures and ages.
http://www.fool.com/investing/general/2015/07/31/disneys-biggest-strengthdiversification.aspx
http://www.ukessays.com/essays/marketing/the-diversification-strategy-atdisney-marketing-essay.php
Disney has formed several strategic alliances with large companies, one of the
most well known being with McDonalds Restaurants (McDonalds). The
companies entered into a strategic alliance in 1996 worth $10 billion in which
McDonalds agreed to market Disney movies through radio, television, and instore giveaways (Scribd, n.d.).
One of Disneys major strategic alliances with Hewlett-Packard (HP) began in
1940 (3rd Eagle, 2013) and continues to this day. The strategic alliance involves
a wide range of activities from the technological hardware HP provides for Disney
to the collaborative efforts of HP engineers and 9 Disney Imagineers to create
the Mission: SPACE attraction at Disney World (HP, 2009). The success of
Disneys various strategic alliances have been largely due to the benefit Disneys
partners receive by having access to the iconic brand and thereby drawing in
more consumers. Disney, in turn, has been able to market itself by exploiting its
partners core competencies while maintaining focus on producing quality
entertainment.

MARVEL

Marvel was originally founded as a comic studio but became so popular the
company spread in to new divisions of entertainment including TV shows and
also movies. In 2009, Marvel was bought by the Walt Disney Company. Marvel
has created hit superhero comics and movies such as Spiderman, Ironman,
Incredible Hulk, X-Men, and the Avengers.

INTEGRATION
Conglomerization takes place in the Walt Disney Company with ABC, ESPN,
Disney Theme Parks, Pixar, Marvel, and Radio Disney.
Horizontal integration is when Disney develops material that is not directed
toward their target market. This allows Disney to expand business and create a
new target market giving them more profit. An example of this is the purchase of
Marvel with the film Iron Man. Vertical integration is when Disney has to
produce, market, distribute, and create merchandise for their product. An
example of this can be seen thanks to the High School Musical series. Disney

produced it in their studios, marketed it on Disney Channel and ABC News by

interviewing the cast. Their merchandise included, apparel, purses, make-up, and
later, a theatrical version of High School Musical. Synergy can include the Lion
King film series. It had have three sequels, a hit Broadway play, the soundtrack
for the play and the first film was available but they both also had shirts, cups,
and other souvenirs.
PIXAR

Pixar was at first a graphics company in 1979, but in 1986 became its own
company thanks to the late Steve Jobs. Pixar has created 13 feature length films
which include Toy Story 1-3, A Bug's Life, Monsters Inc, Cars 1-2, The Incredibles,
WALL-E, and Brave along with many others. In 2006 Disney bought Pixar which
has won 29 Academy Awards, 7 Golden Globes, and grossed more than 7.2 billion
dollars.

TOUCHSTONE

Touchstone Pictures is a subsidiary of Walt Disney Studios and is usually used to

release movies with a more adult and or darker tone. Touchstone was founded in
1984 and their first hit film was Splash, staring Tom Hanks. Jerry Bruckheimer is
one of the key producers for many of their films, some notable films include
Gone in 60 Seconds, Dead Poets Society, Sister Act, Pretty Woman, and Pearl
Harbor.

WALT DISNEY STUDIOS

Walt Disney Studios was founded in 1950 and is headquartered in Burkbank,

California. Disney has expanded everyones imaginations not just children's since
their first live-action film of 1950, Treasure Island. No matter if it be land, sea or
space it seems as if Disney has been there thanks to their collaborations with
great artists and world renowned film-makers making some of the most

successful films in history. Some notable movies include the Pirates of the
Caribbean films, Alice in Wonderland, and the upcoming films The Lone Ranger
and Oz the Great and Powerful.

OTHERS
Other studios include DisneyNature, Disney Animation Studios, Disney Music
Group, and Disney Theatrical Group.
http://www.slideshare.net/greg1510/walt-disney-an-analysis-of-the-strategicchallenges