For GDPR compliance, we do not use personally identifiable information to serve ads in the EU and the EEA. 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. For example, expansion opportunities can improve the revenues of Disneyland operations. After inception, the company grew to be the best in the animation industry but later diversified to theme parks, live-action films, online media, music, theater, radio, publishing et cetera. In the SWOT analysis model, this aspect refers to the internal factors that strengthen business growth. The Walt Disney Company has applied SWOT analysis model to identify its internal and external environmental factors. Disney is an American entertainment company that was founded in the year 1923 and has its headquarters in California. Risk Analysis of The Walt Disney Company ( DIS | USA) "The Risk Score is a relevant measure for the assessment of a stock attractiveness. 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 Walt Disney Company positions itself as one of the leading firms in the entertainment, mass media, and amusement park industries. Sky-High Attrition Rate – Walt Disney Company has spent enormous amounts on training and grooming their employees. A portion of Disney’s manufacturers are in foreign countries, if the isolation phase continues, Disney could be under pressure to gain sufficient profits. Nonetheless, the bargaining power of suppliers and the threat of new entry are strategic management issues in the global business environment. The corporation’s limited diversification is an internal strategic factor that prevents new business ventures in high-growth industries. The Walt Disney Company Value Chain Analysis and its implementation can highlight and remove the bottlenecks to the information flow. Disney has a strong foothold in the industry, a feat accomplished mainly due to their history and roots in the American culture. The drop in the forth quarter Walt Disney Co's Revenue compares unfavorably to the Company's average Revenue growth of 6.04%. It is unlikely that Disney will vanish anytime soon. Analysis Options ... Industry Media & Publishing. Disney was established in 1923 and is still standing strong. The only way they can retain a safe zone is to design an application that would provide Disney content only through subscription. Further penetrate markets, especially developing markets, to benefit from their high growth rates. For example, Disneyland theme parks tend to have a reactive rather than an aggressive approach in adopting new technologies. Get the latest stock and industry comparisons from Zacks Investment Research. In comparison, 34.5 million people visited the Universal Parks (ranked number three globally) which are located in Florida, California, Japan and Singapore. Best Buy Mission Statement, Vision Statement, Values & Culture, Deloitte: Mission Statement | Vision Statement| Values | Culture, Starbucks Mission Statement, Values, Principles, & Sustainability Goals, Uber: Mission Statement | Cultural Norms | Principles | Philosophy (2020), Amazon: Mission | Leadership Principles | Philosophy (2020), Nordstrom: Mission | Vision | Core Values (2020), Top 15 Netflix Competitors & Alternatives. Haile, M., & Krupka, J. Competitive Analysis Disney competes with many different media conglomerates across its various business lines. Political factors: An opinionated chief executive Over the last few years, the Walt Disney Company has been surprisingly opinionated about politics . 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. For example, the variety of the company’s movies and corresponding merchandise and amusement park services gradually increase throughout time. They started with a vision to provide wonderful classical content in the form of 2D cartoons. In-depth view of key statistics and finances for THE WALT DISNEY COMPANY (DIS) on MSN Money. The above is a comparative analysis of the financial position and performance of the company. The Walt Disney Company’s management efforts must tackle the following threats to the business: Competition remains the most significant threat relevant in this SWOT analysis of the Walt Disney Company. The Walt Disney Company is a diversified global entertainment company that operates in four business segments. Walt Disney is responsible for some of the most iconic stories like The Lion King and Alice in Wonderland. Valentin, E. K. (2001). When it comes to entertainment production for cartoons, Walt Disney Studios is one of the most successful and, Salary wages around the globe are continuously increasing. The company does innovate through continuous product improvement. Comparing the results to its competitors, Walt Disney Co reported Total Revenue decrease in the 2 quarter 2020 year on year by -41.82 %, despite revenue increase by most of its competitors of 10.54 %, recorded in the same quarter. S.K. Did you know that Walt Disney’s first original character was a rabbit named Oswald? Further diversify the business, even in limited ways, to increase product scope. Competition, the bargaining power of customers, and the threat of substitution are the most significant external forces determined in this Porter’s Five Forces analysis of Disney. The Walt Disney Company’s organizational culture is partly responsible for these weaknesses. Even though the company has been able to attain a large market share through its movie and theme park businesses, its lead competitors such as 21st Century Fox, CBS, and Time Warner Company continue to pose risk to profitability. 3. See Walt Disney Company (The) (DIS) stock analyst estimates, including earnings and revenue, EPS, upgrades and downgrades. Stay up to date on the latest stock price, chart, news, analysis, fundamentals, trading and investment tools. Disney has proven to be the market leader in the media industry, with the largest market-share by revenue of all With salary wages rising by the country’s law, Disney could end up with. Jackson, S. E., Joshi, A., & Erhardt, N. L. (2003). SWOT analysis is a vital strategic planning tool that can be used by Walt Disney managers to do a situational analysis of the firm . The Risk Score for The Walt Disney Company is significantly higher than its peer group's. 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. Following are the Opportunities in Walt Disney World Resort SWOT Analysis: 1. The Walt Disney Company is listed at New York Stock Exchange (NYSE) and have a market cap 165.85B USD. Disney Swot Analysis – 2017. Earnings vs Industry: DIS is unprofitable, making it difficult to compare its past year earnings growth to the Entertainment industry (40.6%). PESTLE Analysis of Walt Disney analyses the brand on its business tactics. This PEST analysis of the Walt Disney Company explains the political, economic, social, and technological aspects you likely aren’t aware of. As of 2020, Walt Disney World Resort is one of the leading brands in … This purchase gave Disney access to several comic book characters, such as Spider-man, X-Men, Captain America and Thor. Disney has proven to be the market leader in the media industry, with the largest market-share by revenue of all However, weaknesses impose limits on potential growth. The conglomerate needs to address the challenges identified in this SWOT analysis. Looking into forth quarter results within Broadcasting Media & Cable TV industry 30 other companies have achieved higher Revenue growth. The SWOT Analysis of Disney is given below: As technology progresses, the use of viewing entertaining content has become accessible through smart devices, which is something that Disney lacks in. This internal factor helps manage customers’ expectations, which tend to be positive relative to the reputation of the Disney brand. 10.2. Limited diversification is another weakness considered in this SWOT analysis of Disney. Did you find this article interesting? The comparison is based on official financial statements filed with the U.S. Securities and Exchange Commission (SEC) through the Electronic Data Gathering, Analysis, and Retrieval system (EDGAR) (about 10,000 largest publicly traded companies). Walt Disney Company faces high threat of competitive rivalry from other firms in the media and entertainment industry. These business segments are Media Networks, Parks and Resorts, Studio Entertainment, and Consumer Products & Interactive Media. Company: Walt Disney CEO: Robert Iger Year founded: 1923 Headquarter: Burbank, California, USA Number of Employees (2018): 201,000 Type: Public Ticker Symbol: DIS Market Cap (Aug 2019): $255 Billion Annual Revenue (FY18): $59.43 Billion Profit |Net income (FY18): $12.6 Billion, Products & Services: Television Programs | Motion pictures | Plays | Musical Recordings | Books | Magazines | Video Games | Toys | Apparel | Accessories | Footwear | Home Décor | Cosmetics | Consumer Electronics | Stationery | Radio Networks | Radio Stations | Resort Vacation Club | Cruise Lines | Theme Parks | ABC | ESPN Competitors: CBS | Sony | Comcast | Viacom | Time Warner Cable. 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. The SWOT analysis tool informs managers about the internal factors (strengths and weaknesses) and external factors (opportunities and threats) pertinent to the business. This SWOT analysis also identifies external factors that present barriers to the company’s growth. The company’s largest competitors are Comcast, Time Warner, 21st Century Fox, CBS Corp., and Discovery Communications. This trend is an opportunity in this SWOT analysis. It is a handy technique to analyze the present Strengths (S), Weakness (W), Opportunities (O) & Threats (T) Walt Disney is facing in its current business environment. An analysis of Disney’s position within the studio entertainment industry is paramount to assessing its continued success. Introduction. This SWOT analysis of Disney sheds light on the issues that investors and management personnel must take into account when evaluating the business. Over the years The Walt Disney Company has redefined the ways of doing business in Services. For example, the company’s strong and popular brand is a major competitive advantage. Disney isn’t a technology or a software house and therefore cannot make technology to work specifically for them. Join our newsletter today to get updates on the latest posts! This internal strategic factor is based on the company’s aim of synergy through its business segments. While the Disney brand has diversified to include resorts, theme parks, gaming, merchandise, and broadcast television, Disney’s performance within the film industry perpetuates its notoriety and global success. Disney’s Organizational Culture for Excellent Entertainment (Analysis), Walt Disney Company Five Forces Analysis (Porter’s) & Recommendations, Walt Disney Company’s Mission Statement & Vision Statement (An Analysis), Disney’s Generic Competitive Strategy & Intensive Growth Strategies, Walt Disney Company’s Organizational Structure for Synergistic Diversification, Walt Disney Company PESTEL/PESTLE Analysis & Recommendations, Disney’s Stakeholders & Corporate Social Responsibility (CSR) Strategy, Walt Disney Company Marketing Mix (4Ps) Analysis, Sony Corporation’s SWOT Analysis & Recommendations, Burger King SWOT Analysis & Recommendations, Unilever's SWOT Analysis & Recommendations, McDonald’s SWOT Analysis & Recommendations, Facebook Inc. SWOT Analysis & Recommendations, Microsoft Corporation’s SWOT Analysis & Recommendations, Home Depot SWOT Analysis & Recommendations, Whole Foods Market SWOT Analysis & Recommendations, The Walt Disney Company’s organizational structure, The Walt Disney Company’s organizational culture, The Walt Disney Company’s generic strategy for competitive advantage and intensive strategies for growth, The Walt Disney Company – Disney Named World’s Most Reputable Company, U.S. Department of Commerce – International Trade Administration – Media and Entertainment Spotlight – The Media and Entertainment Industry in the United States, Strong cooperative growth among business segments. The Walt Disney Company also got an opportunity of growth in various industry which leads to grow its business through the managerial approaches. These business segments are Media Networks, Parks and Resorts, Studio Entertainment, and Consumer Products & Interactive Media. Recent research on team and organizational diversity: SWOT analysis and implications. In 2009, Disney purchased Marvel Entertainment for about $4 billion. Save my name, email, and website in this browser for the next time I comment. In this aspect of the SWOT analysis, opportunities facilitate business growth. Disney Swot Analysis – 2017. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. SWOT analysis from a resource-based view. The Walt Disney Company is in the entertainment industry. Such efforts must consider changes in the global market, and the strength of the Disney brand in the long term. For example, competitive forces involving Viacom Inc. and CBS Corporation can bring down business performance. In addition, The Walt Disney Company’s organizational structure facilitates mutually beneficial cooperation among business segments. 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. To conclude the industry analysis the entertainment business is a growing business due to the change in demographics and the orientations of today’s generations. Through this strength, the company presents itself as a decent and family-oriented business suitable for all customers. However, through expansion and diversification, the company has added products in the parks and resorts industry, and the retail industry through the sale of consumer goods … In the SWOT analysis model, this aspect focuses on the external strategic factors that have potential to reduce business performance. - Development of strategic… Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Highlights. It has still not improved its high attrition rate. The corporation’s strengths and weaknesses (internal factors) must suit the opportunities and threats (external factors) in its international industries. 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, strengths sufficient for exploiting opportunities in the mass media industry present potential success of strategic growth initiatives. The five forces model focuses on different factors in an industry that can affect the strategy and business operations of a company. This aspect of the SWOT analysis shows that addressing The Walt Disney Company’s weaknesses require some changes in core strategies and management approaches. Disney Studio’s magical vision was idealized by two brothers, Walt Disney and Roy O. Disney. Overall, the enumerated strengths in this aspect of the SWOT analysis of The Walt Disney Company support long-term growth despite aggressive competition. This internal strategic factor contributes to revenue growth, while supporting the company’s popularity. Patanjali SWOT analysis 2019 | SWOT analysis of Patanjali, Google SWOT Analysis 2020 | SWOT analysis of Google. Also, the external factor of growth in various industries is an opportunity to grow the corporation’s business through diversification and related managerial approaches. Share your thoughts and experiences in the comments section below. The Marvel purchase should prove to be lucrative as Disney presents … Over a period of 95 years, they have become an iconic company, reaching out to the hearts of billions. Financial data source and analysis principles. If you may be interested please in being included as a resource on our blog, please let me know. Walt Disney PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. For example, digital technology implementations can improve business efficiencies and output quality in amusement parks and resorts. Synergy requires businesses that are closely related, and not diversified businesses in unrelated industries. The Walt Disney Company has a vast experience in operating amusement parks and is very popular internationally. Focusing on the most significant issues in the industry environment, it is recommended that The Walt Disney Company: We use cookies for website functionality and to combat advertising fraud. Currently, Disney Studios has an Umbrella Corporation, which has grown exponentially in the past nine decades. The recommendations based on this SWOT analysis of Disney are focused on improving business competitiveness and long-term success in the international market. This report provides a comprehensive analysis of The Walt Disney Company. Disney’s management must address the following weaknesses of the business: The weakness of limited innovation is associated with Disney’s business strategies. This strength enables synergistic cooperation to ensure competitive advantage. 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 following internal strategic factors are the strengths of The Walt Disney Company: Disney has a popular and strong brand, which is among the most easily recognizable in the world. Copyright © 2020 Business Strategy Hub. Also, branding strategies impose limitations on the multinational business. The growth of developing market is an important factor which also creates an opportunity for the company to develop their business into the market. Disney has created a unique brand experience that has translated into brand loyalty. Aug. 12, 2019 11:32 AM ET The Walt ... Streaming giant Netflix is Disney’s main obstacle to becoming number 1 in the streaming industry – and Disney … For example, business strengths protect the company against the aggressiveness of Comcast Corporation (owner of Universal Pictu… This article may not be reproduced, distributed, or mirrored without written permission from Panmore Institute and its author/s. Return on Equity High ROE : DIS has a negative Return on Equity (-2.5%), as it is currently unprofitable. (2016). The Disney brand is extremely popular and is the pioneer in the industry of theme parks which can be leveraged to further expand 2. 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