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The Walt Disney Company is the largest media and entertainment conglomerate in the world in terms of revenue.Founded on October 16, 1923, by brothers Walt Disney and Roy Disney as the Disney Brothers Cartoon Studio, the company was reincorporated as Walt Disney Productions in 1929. Walt Disney Productions established itself as a leader in the American animation industry before diversifying into live-action film production, television, and travel. Taking on its current name in 1986, The Walt Disney Company expanded its existing operations and also started divisions focused upon theatre, radio, publishing, and online media. In addition, it has created new divisions of the company in order to market more mature content than it typically associates with its flagship family-oriented brands. The company is best known for the products of its film studio, the Walt Disney Motion Pictures Group, today one of the largest and best-known studios in Hollywood. Disney also owns and operates the ABC broadcast television network; cable television networks such as Disney Channel, ESPN, and ABC Family; publishing, merchandising, and theatre divisions; and owns and licenses 11 theme parks around the world. The company has been a component of the Dow Jones Industrial Average since May 6, 1991. An early and well-known cartoon creation of the company, Mickey Mouse, is the official mascot of The Walt Disney Company. Walt
Disney is one of the best-known names in the world of entertainment. The name is associated with countless animated films, theme parks and resorts--including the Walt Disney World resort in Orlando, Florida. Although this resort is world famous and has been extremely successful, it is still subject to market forces.
The Walt Disney Company s S.W.O.T Analysis
There are four things an organization should consider and analyze during various stages throughout the fiscal year that are crucial to keeping up with the competition and giving a relatively accurate perspective on where they stand. Those four things are the company¶s Strengths, Weaknesses, Opportunities and Threats (often referred to as the SWOT analysis). A
SWOT analysis can be used to understand the position that Walt Disney World currently occupies in the market. This can be used internally to make decisions about the future direction of the company or by competitors to anticipate what the company might do next.
The SWOT analysis helps an organization understand the current and potential environment for their particular product and service which allows them to adjust their marketing tactics in order to help focus their strategy. When doing a SWOT analysis it is important to recognize that the Strengths and Weaknesses are internal reflections, whereas the Opportunities and Threats are external reflections. In order to understand how Walt Disney World is positioned in the market, it is helpful to conduct a
SWOT analysis. A SWOT analysis is a managerial tool which assesses the strengths, weaknesses, opportunities and threats that a business faces.
The Walt Disney Company s Strengths "I knew if this business was ever to get anywhere, if this business was ever to grow, it could never do it by having to answer to someone unsympathetic to its possibilities, by having to answer to
together with its subsidiaries. ." Walt Disney (Disney Dreamer 2007). It also makes movies and markets consumer products. Disney has one the most recognized and powerful brand names in the entertainment industry. Furthermore. The company already operates through four different business segments. studio entertainment and consumer products. after Time Warner. namely profits. the company clearly has developed a very strong and well known "brand-name and image" over many years. parks and resorts. The Walt Disney Company is the second largest media and entertainment corporation in the world. being other brands of Disney. Walt Disney had many ideas that helped the Walt Disney Company gain the strength of having such a tremendous foothold in the market to this day. According to Telephonyonline. Not only does the company have a strong corporate brand. For my idea of how to make profits has differed greatly from those who generally control businesses such as ours. will win against all odds. It owns media networks as well as parks and resorts. according to Forbes. the Walt Disney Company is attempting to expand and team with Sprint to create a mobile virtual network operator (MVNO) service that targets families with children and adult Disneyphiles. they have additional brands such as ESPN (one of the biggest sports channels in the world). Touchstone. I have blind faith in the policy that quality. is a diversified entertainment company. a branding consultancy. These. Miramax. In a report by Datamonitor (2007) the Walt Disney Company.someone with only one thought or interest. the Walt Disney Company was ranked 8th in the Top 100 Global Brands ranking of the BusinessWeek Magazine and Interbrand. These segments consist of media networks. in 2006. have high brand equity. According to Datamonitor 2007. tempered with good judgment and showmanship. With this said. they are going a different direction to expand their already broad product portfolio. the availability of entering new businesses and being able to produce new brand products is quite accessible. and Pixar. Because of this.
giving it access to an even greater number of brands and characters. Walt Disney was ranked 8th in the Top 100 Global Brands. Increasing trends in overall revenues and profits. Disney Consumer Products.Walt Disney World's greatest strength is its world famous brand. It has become one of the biggest Hollywood studios. Walt Disney Parks and Resorts.497 billion of assets. Cinderella and Winnie the Pooh in order to attract customers. Beyond the Disney name. Disney employees 150.000 people. Disney has expanded its holdings to include the Mirimax film studio and the Pixar animation company. Innovative ideas Global standardization It is among the popular brand names in the world. Strengths It is the largest media and entertainment company in the world. Strengths [LIST] [*] Walt Disney: its growing stages so there is good financial position [*] Professional and Committed workforce [*] Low cost than other major entities [*] Successful launching Product Lines Strength * Global Standardization * Target Customer: Children * Creative Process * Popular Brand Name * Diversification * Disruption * Mickey Mouse likes little boys * paedobear * Secret Nazi Army The Walt Disney Company s Weaknesses . Disney Interactive Media Group. Disney holds US$ 62. the Disney brand is one of the most recognizable brands in the world. It has well established divisions Walt Disney Studio Entertainment. Disney Interactive Studios. With theme parks around the world and movies released to generations of children. Walt Disney World is able to use the brand power of its many animated characters such as Mickey and Minnie Mouse. Differentiation The Walt Disney logo is famous. Disney-ABC Television Group. . Popular characters High brand awareness among the people. Disney Company owns 11 theme parks and several channels.
000 people working for Disney in some way or another.8 billion theme park has only 16 attractions. 2007). If the downward sloping performance of this resort continues. Typhoon Lagoon and Blizzard Beach. As of September 2007. This diverse product portfolio may represent a weakness because managing such different products can reduce efficiency and lead to a lack of strategic focus.Two of the Walt Disney Company s main weaknesses relate with a great possibility of problems. On top of all of this. This means greater possibilities for miscommunication and a high chance for a bureaucracy in the company. Walt Disney World operates several different hotels and a campground. The $1. Weaknesses * * * * * * * * * * High sunk cost Excessive Research & Development Constant Up gradation High Investment High Risk Factor Limited range of target audience group Poor Management Cultural Imperialism Media Network Competition anti semetic Weaknesses High operating cost . but it also means that there are going to be that many more workers. Animal Kingdom and Magic Kingdom. They have also expanded beyond their traditional brands with the ESPN Wide World of Sports attraction. including Epcot. they have opened up two water parks. By expanding their broad product portfolio and gaining many different niches it gives them a bigger image. A recent study of Hong Kong Polytechnic University showed that 70% of the local residents had a negative opinion of Hong Kong Disneyland Resort. only one of which is a classic Disney thrill ride (Space Mountain). the resort has yet to live up to the expectations of Disney s resorts and parks. The idea of Disney s frequent change in top management and the tremendous amount of employees is where the problems all arrive. compared to 52 at Disneyland Resort Paris. Additionally. The most recent weakness of the Walt Disney Company has come from Hong Kong Disneyland Resort. According to many. Weaknesses o Walt Disney World includes several different theme parks within its resort. the image of the Disney Company will also start to take that direction. there were 130. (Datamonitor.
8 Billion park have only 16 attractions. pg. soil was mentioned earlier regarding the Disney Cruise Line. a service well placed and growing in popularity. According to Datamonitor. Research and Development has promised to provide new attractions such as the Finding Nemo Submarine Voyage presenting an (Datamonitor. Another opportunity for Disney was also mentioned earlier considering Disney and their Imagineering section. Japan and China. including The Lion King. and Disney¶s original releases of The Rescuers. 23). 2007. Religious welfare group protest against the release of material which was found offensive by many people. Continuous innovative ideas are required to retain the attention of customers. Aladdin. Disney was also criticized by animal welfare group for their caring procedure for animals at Disney¶s Animal Kingdom theme Park. Poor management. Another expansion opportunity from U. 22). nearly 25% of their operating income comes from outside the United States and Canada (Datamonitor. The Little Mermaid. Who Framed Roger Rabbit. Frequent change in top management The $1. 2007. Weaknesses [list] [*] Neglect market share in large market [*] Limited media system in management [*] Excessive Research & Development [*] Constant Up Gradation [*] High Investment [*] High Risk Factor The Walt Disney Company s Opportunities The markets of today are becoming more versatile to outsourcing and globalization.S. High investment with high risk involved. The trend towards globalization is not immune to the entertainment business and The Walt Disney Company is revealing this by expanding outside of the United States and offering theme parks in France. Poor working conditions in factories that produce their merchandise. Disney has been blamed of having sexual implication or references concealed in some of their animated movies. pg. under the sea experience for consumers .
This provides Walt Disney World with the opportunity to create exciting. There is a need for constant monitoring of the differences in the laws of other countries and the United States when organizations are outsourcing. new attractions that will draw in new visitors. through the use of "imagineering. It refers to the company's ability to develop innovative new attractions that bring the imaginary world to life." Imagineering is a combination of imagining and engineering. In Disney s case their theme parks must meet the safety regulations of the countries in which they operate in order to stay in business and maintain their international status.Opportunities o According to Danjel Lessard and Lauren Northcutt of Pacific Lutheran University. how they are selling it. Act Local Characters of national or regional appeal Cheaper alternatives to soft toys Disney Music Channel Disney School of Management/Training Institute Opportunities [list] [*] Merchandise [*] Introduction of innovative products [*] Acquiring franchise in sport sectors [*] Penetration provide capture in media favoritism [*] Global Localization: Think global. whether or not they are selling it effectively and . As with any business a main aspect of the Threat analysis is the competition. The analysis of what competitors are selling. developed by Walt Disney. a major opportunity exists for Disney parks and resorts. including Walt Disney World. Opportunities * * * * * * Merchandise Global Localization: Think global. Act Local [*] Characters of national or regional appeal [*] Cheaper alternatives to soft toys [*] Disney Music Channel The Walt Disney Company s Threats Threats that are more prevalent in the era of globalization are the laws and regulations of other countries.
there are hundreds of water parks and various funplexes that can also be considered as cheaper or more valuable competition for Disney. a major threat to Walt Disney World is the competition of other resort and theme parks such as Universal Studios. Threats o According to Danjel Lessard and Lauren Northcutt. as mentioned earlier. Universal Studios and Six Flags Theme Parks. Threats * * * * * * * * * * * * Piracy in movie industry Competitors: National. Competition. However. such as Paramount Parks. in any form. Walt Disney World risks losing customers to the many theme parks that are opening throughout the United States and the rest of the world. These theme parks have the potential to steal away visitors who might otherwise make the trip to Walt Disney World.profitably and how your product or service differentiates from theirs is a crucial way to know how to attract more customers to your organization. For example. Creativity and Innovation [*] Unprofitable or hasty acquisition [*] Brand Consistency [*] Product Differentiation Threats . Regional & Global Employee Retention Highly Demanding in terms of Sales. Regional & Global [*] Employee Retention [*] Highly Demanding in terms of Sales. 2. there are many other less visible competitors that one might not naturally think of when assessing the competitive market in which Disney deals. can diminish Disney s market share in the entertainment industry. Creativity and Innovation Unprofitable or hasty acquisition Brand Consistency Product Differentiation Lawsuits Terrorism Natural Disasters Change in the younger generation's preferences Regulations [list] [*] Competitors: National. In the case of The Walt Disney Company and the theme park industry there are many competitors. In addition to competitors in its geographic area. which is also located in Orlando.
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