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Essay / Disney's Five Forces Analysis for The Walt Disney Company
Walt Disney CaseGBA490Siyi YangContents 1. Issues and Recommendations2. Industry and Competitive Analysis • Dominant Economic Characteristics • PESTEL Analysis • Five Forces Analysis • Drivers of Change in the Industry • Current Strategy • Competitor Analysis • SWOT Analysis • Financial Analysis Overview and History Walt Disney is a media and entertainment company with a line of business that includes resorts and theme parks, film production and distribution, eight local television stations and various other businesses that exploit the company's intellectual property . The company's revenues increased from $35.5 billion in 2007 to $40.9 billion in 2011. Five Forces Analysis Threat of New Entrants The problem new entrants pose to the Walt Disney Company depends on power barriers and their response. This threat of new entrants into the Walt Disney industry is very low since it has established itself with significant dignity in the film and media networks. The development of Internet supply channels makes this sector less important given its immense and accessible distribution prospects. Competition from SubstitutesThe strong threat of substitute services and products is very likely and likely in this industry due to the innovations of other companies. The Walt Disney Company is taking steps to expand and increase the services presented to guests. The company has solved this problem with the presence of 3D compatible displays that children and families are willing to pay premium prices to enjoy. Buyer PowerIn the entertainment industry, the bargaining power of the buyer is high, but if low-cost choices are available, most families will choose them. Buyers have a very wide range of programs to choose from. Globalization also adds bargaining power to businesses. The company is divided into a number of strategic groups. studio entertainment, parks and resorts and broadcast media networks. It all depends on price, presentation and market. Disney products include: Disney Hardlines, Softlines, Toys, Editions and Editions. The main Desney parks and resorts are Walt Disney World, Disneyland, Tokyo Disney, Disneyland Paris and Disney Vacation Club. Broadcast on media networks includes: Disney-ABC Television, Walt Disney Internet Group, ABC Radio and ESPN Inc. Studio entertainment includes: Miramax Films, Buena Vista Discs, Hollywood Discs and Walt DisneySwot AnalysisStrengths1 Discs. A solid portfolio. Walt Disney products are one of the most watched channels and the company's portfolio provides a competitive advantage over other entertainment industries.2. Brand reputation. The company's brand has been known for many years and recognized throughout the world. It is considered the only producer of family entertainment in the United States3. Diversified company. The company has five business lines: Parks and Resorts, Media Networks, Studio Environment and Consumer Products. Weakness1. Walt Disney is more dependent on revenue from North America since 75% of its revenue comes from the United States.2. There are fewer opportunities through acquisitions for