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Running head: THE WALT DISNEY COMPANY

Case Study: The Walt Disney Company: Its Diversification Strategy in 2014

Fazila Zavqibekova

Herzing University
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THE WALT DISNEY COMPANY
Case Study: The Walt Disney Company: Its Diversification Strategy in 2014

Walt Disney is a widely diverse media entertainment organization with a business line

inclusive amusement parks and vocation spots, the manufacture, and allocation of moving

pictures, eight spot TV channels and many other organizations that utilized the corporation’s

copyright. The animations of Mickey Mouse summoned the prosperity of The Walt Disney

Company, yet Disney Studios additionally made public several tremendously popular cartoons,

comprising "Snow White" and "The Seven Dwarfs" in 1937, "Pinocchio" in 1940, "Dumbo" in

the 1941 year. Disneyland occurs from the concept that Disney had many years ago, sitting on a

bench in a theme park, observing the play of their little daughters. Walt Disney thought that

there must be a pure and protected park with features that would be absorbing to parents as well

as their children. Walt Disney spent many years designing the park and published the building of

a renewed park in America on his broadcast at Disneyland, which was commenced to advertise

a new park worth $ 17 million, and i it was a favorable outcome during its launching in 1955

(Thompson. A, Peteraf. M, Gamble.J, & Stickland.A.J. 2016).

Porters five forces

As base of the Porter Five Forces studies, the competitive agent evaluates outer factors

that maintenance the hardness of rivalry in the industrial environment. This business analysis of

The Walt Disney Company studies how companies impact each other in performance,

amusement parks, and mass media industries. Also this outer studies explorers tendencies that

influence the improvement of commerce in these worldwide industries. For instance, rival

marketing plans in the mass media are a components in strategic planning and operation of the

organization. The strong point of rivalry with Disney is depend on the several outer agents. For

example, there are many companies in the market, that is a powerful strength.
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Besides the high aggressiveness of companies, which is as well thought a powerful force.

Also there is a reasonable distinction, that is prominent as an average force. Besides five Forces

studies stress companies’ aggressiveness as an outer components that rises the power of rivalry

in the industry. For instance, rival organizations that manufacture “blue ribbon” cartoons

aggressively emulate contrary to Disney’s Pixar Animation Studios. This case makes the

business area aggressive. Besides, tempered distinction adds to the aggressive competitiveness.

The Porter’s Five Forces studies scope considers the negotiating force of consumers in

impacting commercial plans, like pricing plans. In Disney’s case, the outer factors vital to

consumers’ power interest regarding their ability to select amongst companies and goods in the

commercial framework. For instance, higher effectiveness of altering brands matches to

powerful consumers capacity in impacting administrative systems in the cosmopolit business. If

the changing price is moderate, it is easier for the consumers to switch from Walt Disney to other

organization (The Walt Disney company, 2014). It produces a powerful force for the consumers.

Walt Disney Company has many providers in their business, that correlate with to the feeble

negotiating power of the dillers. The diller cannot impact the business, as there are many other

dillerss that the organization can fit. The decreased handinest of replacements is an outer agents

that moderately increases the threat of exchange in The Walt Disney Company's business.

Consumers have a rational quantity of a deputy. Walt Disney has a healthy accordance of

production and cost, that appeals the consumers and restrains them from operating to the rivals.

Walt Disney ought to introduce new strategies for giving fulfilment their consumers, bearing in

mind that there is a temperate threat of replacement. The imminence of fresh element of five

forces defines that if there is the low price of changing, then the consumers can promptly move

from Walt Disney to the presh entrants.

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Though, there is a high financial expenditures, that makes it difficult for the fresh entrants

to come in the business. Walt Disney created a brand that is famous worldwide, that makes it

hard for the fresh entrants. Indeed, rival based on brand is very difficult.

SWOT analysis

In the SWOT analysis sample, strength alludes to the outer factors which rise company

development. In this organization study case of Disney, such determinants bolster administration

intends to develop the business among the aggressive rivalry in the worldwide amusement and

broad communication. Disney’s brand is famous and powerful, that is pinpointed the most

certainly recognized organizations in the world. By means this strengthen, the organization

exalts itself as a reliable and aimed at family values business suitable for all consumers. This

inner factor assists preserve consumers’ expectations, that is vital and useful for the image of the

organization brand. Also this SWOT analysis views the organization’s growing investments of

famous goods as one of the powers of the commerce. For instance, the quality of the

organization’s cartoons and theme park services unceasingly grow throughout time. This inner

strategic factor helps to income rise when advancing the organization’s standing (The Walt

Disney company, 2014). In addition, The Walt Disney Company’s organizational agreements

helps reciprocally profitable partnership between business segregations. Weakness feature of the

SWOT analysis model estimates the inner strategic factors or weaknesses that function as

reductions for the organization to develop and expand.

Weakness aspect of the SWOT analysis model estimates the inner strategic factors or

weaknesses that works as restrains for the business to grow and develop. The weakness of

inadequate novelty corresponde with Disney's commercial strategies. The organization represents

novelty via constant development of the product. Though, quick innovations utilising
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THE WALT DISNEY COMPANY
innovative technologies are confined to the organization's work. For instance, Disneyland

amusement parks are more reactive than an invasive method when accepting innovation

technologies. The common strategy of Walt Disney organization on rival dominance and high

growth strategies is focused on the feature of the product and the distinctive features of the

product, with restricted consideration to quick technological novelties.

Technological innovations influence all businesses Walt Disney has the possibility to

present innovation technologies to develop its worldwide commerce. For instance, the

execution of digital technologies may upgrade business effectively and product quality in theme

parks and resorts (Business survey, 2017). Moreover, the outer growth development factor in

different manufactures is a possibility to grow the business of the organization via variousness

and connected management methods. In this respect, the development of emerging markets is an

outer strategic factor that generates the possibility for growth of the organization's performances,

for instance, by passing through the market in the media business. Chances in this aspect of

SWOT analysis illustrate that The Walt Disney Company may rise its incomes via novelty,

diversification, and growth.

Rivals stay on the most important threat refer to this SWOT analysis of Walt Disney.

Invasive rival is particularly perceptible in the international media and amusement industry. For

instance, aggressive companies emulate, providing cartoons resembling to those from Disvel's

Marvel Studios (GuruFocus.com: SWOT analysis: Walt Disney Co, 2015). Besides, the outer

factor of industrial breakdown has the possibility to decrease the organization's incomes. For

instance, technological alterations in the online delivery of products in the amusement and media

markets continue to move some incomes to businesses providing online channels and net.

Furthermore, copyright of electronic content decreases the organization's possible income,

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mainly in markets with low juridical security from this menace. This feature of the SWOT

analysis points to outer strategic elements that need Disney executives to rise their rival

privilege when keeping safe companies from technological collapses and infringement.

To conclude, Walt Disney has expanded a powerful brand and consumer

allegiance.References according to this Disney SWOT analysis are pinpointed at rising the

competitiveness of the company and permanent prosperity in the global market. Alterations in

the administrations and strategies of the organizations should concentrates on utilising its

strengths as inner strategic aspects to guarantee development, despite the organization's

weaknesses. Also these strategies should take into consideration the consequences of results

when utilizing chances based on important outer aspects in the combination working businesses.

By concentrating on the most critical problems in the business environment, there is a

recommendation of onward entry into markets, particularly in emerging markets, in the concern

of their elevated growth rates. Onwards diversification of company, yet in a restricted manner

for raising the capacity of the product.

References
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Business survey 2017 - global walt disney company (DIS) market size, regional outlook forecast
report - acute market reports. (2017, Jul 26). M2 Presswire Retrieved from https://prx-
herzing.lirn.net/login?url=https://search-proquest-com.prx-
herzing.lirn.net/docview/1923224848?accountid=167104

GuruFocus.com: SWOT analysis: Walt disney co (2015). . Chatham: Newstex. Retrieved from
https://prx-herzing.lirn.net/login?url=https://search-proquest-com.prx-
herzing.lirn.net/docview/1644868640?accountid=167104

The walt disney company : Media - company profile, SWOT & financial report. (2014). ().
London: Progressive Digital Media. Retrieved from ABI/INFORM Collection Retrieved
from https://prx-herzing.lirn.net/login?url=https://search-proquest-com.prx-
herzing.lirn.net/docview/1553121963?accountid=167104

Thompson. A Peteraf. M, Gamble.J, & Stickland.A.J. (2016). CRAFTING AND EXECUTING

STRATEGY: THE QUEST FOR COMPETITIVE ADVANTAGE, CONCEPTS AND
CASES, TWENTIETH EDITION. Case 22. The Walt Disney Company: Its
Diversification strategy in 2014. p,C-319.