Walt Disney Company is playing a leading role globally as a media and entertainment conglomerate. The company provides services and products in mass media, entertainment, and amusement parks and resorts industries. The strengths of the company are responsible for such a massive success in these industrial sectors. The SWOT Analysis provides insights about strengths and weaknesses, which act as internal strategic factors, and also about opportunities and threats, exposing opportunities and threats prevalent in external strategic factors. Walt Disney has achieved this success in the industry by maintaining a balance between these forces. The SWOT analysis of this business unshielded the issues prevalent in the company. The company’s policy of branding the business as family-oriented entertainment and the intensifying competition in the global market are significant issues in the business. Therefore, the firm must address the challenges unveiled by this SWOT analysis. The strategic policy must consider the volatility in the global market and the company’s brand sustainability for the long term.
The analysis highlights the imperative matters which the managers and investors must consider before assessing their business’ standing. The relative strengths of the company are the advantages by which the conglomerate can exploit the opportunities shown by this SWOT analysis. The company’s internal strategic factors of strengths and weaknesses must costume opportunities and threats prevalent in the external environment. Therefore, this analysis has highlighted the significance of these factors in the business environment.
Strengths of Walt Disney (Internal Factors)
This section of the SWOT analysis has revealed the strengths of the company, which fosters growth and development. These strengths are responsible for capacitating the business for growth and revenue generation besides making the company resistant to adversities. To demonstrate, the strengths prevalent in the internal environment of the company have enabled it to stand firm against aggressive competitors like Sony Corporation, Universal Pictures, Time Warner, and related firms. Still, the company is flourishing in the competitive market based on the following strengths, which are acting in the internal business environment:
- Strong and reputable brand
- Growing market and portfolio of famous products
- Healthy cooperation among industrial segments
Walt Disney has a strong brand image and reputation around the world. This recognition of the company enabled the products to penetrate the market easily. The company’s outlook as a family-oriented and decent service provider company has earned to gain healthy customer share. Also, the company retains this optimistic image by providing services suitable to its brand reputation. In the same way, the growing market and portfolio of the company’s products add to its long-term growth and stability. The same products are released with newer versions and enhanced qualities, and they meet the success in the market. The company is enhancing the quality of its products and services of amusement or theme parks and entertainment movies and TV shows. This strategy has helped us to retain the customer base plus adding to our market share gradually. Therefore, the company is successfully competing in the market by growing its revenue and adding to its brand reputation. Furthermore, the organizational structure of the company is shrewdly designed and wisely operated. This organization helps the business segments to cooperate and grow mutually by enhancing one another. This collaborative growth has no alternative and gives the company a competitive edge that is not available to its rivals. Briefly, Walt Disney has been able to grow organically due to its strength and has successfully managed the competition in the market.
Weaknesses of the company (Internal Factors)
It includes the factors which are responsible for hindering the growth and business optimization of Disney. The prominent weakness is related to the culture and structure of the organization. The company’s branding strategies have imposed restrictions on the conglomerate’s global business. The management must address the below-listed weaknesses to ensure smooth and steady business growth:
- Restricted innovation
- Constrained diversification
- Inadequate expansion of parks
The company’s business strategy is prone to the drawback of lacking innovation and advancement. Dynamism through product innovation has played a decisive role in shaping the fortunes of many companies; however, Walt Disney is not using rapid technologies to expand its range. To illustrate, the company is often viewed as being more reactive than aggressive when it comes to the adoption of newer technologies. The company’s strategy to cope with competition and foster growth involves uniqueness and quality of the products rather than rapid technological growth and innovation. Thereby, Walt Disney is suffering from a serious weakness in its strategic policy. Another pitfall found in the company’s strategic policy is the lack of diversity. Walt Disney has focused more on the collaboration of its industrial segment, which requires closeness and relatedness. Therefore, Walt Disney has delicately missed diversity in its policy and business. This section exposed the weaknesses in the core management approaches and strategic policies.
Opportunities in the way of Disney Company (External Factors)
This aspect of the SWOT analysis states the opportunities lie in the way of Disney. These opportunities are prevalent in the industry environment and may lead to higher revenue generation if they are properly exploited. The company may expand its business in mass media, global entertainment, and amusement parks based on these opportunities. The success opportunities are prevalent in the company analyzed in this SWOT section.
- Innovation in Technology
- Growth in industrial segments
- Establishing developing markets
Technological growth provides an opportunity for industries to grow by introducing new products and by improving the existing ones. Disney can also improve its business by envisioning technological advancement. As an illustration, the use of digital technology in theme parks and resorts can improve quality and efficiency. Moreover, the conglomerate has the opportunity to grow the business by penetrating into the relative industrial sections. This would give the industry the opportunity to grow and expand. Again, the company has the opportunities to grow the business through the expansion policy. The stabilizing and expanding markets of developing worlds have given opportunities for growth and development to the company. As illustrated by the growth of Disney’s mass media industry in these markets. Finally, Disney has the opportunity to grow its business, revenue, and growth through diversification, innovation, and expansion.
Threats in the way of Disney Company (External Factors)
This segment of the SWOT business analysis model exposes the external factors that have a destructive force and can inflict harm to the business of the industry. These threats can significantly undermine business performance and, thereby, growth. In the case of Walt Disney, the trends of aggressive competition prevalent in the entertainment industry can pose a serious threat to the company. As an illustration, the robust competitive ethos of CBS Corporation or Viacom lnc. have the potential to undermine the company’s market. The subsequently discussed factors which are prevalent in the external business environment are responsible for threats:
- Intensifying Competition
- Disruption in technology
- Piracy of digital content
The company is facing imminent danger in terms of competition and rivalry. This SWOT analysis has highlighted the aggressive competition as a significant force of threat to Disney Company. The intense competition in entertainment and mass media is observable in these industrial segments. For example, the mainstream media has shown many movies similar to Disney’s Marvel Studios that show the rising competition in the market. Moreover, the retorted growth of technology and innovation can undermine the company’s business at any time. As an illustration, the changes in the online delivery of products have witnessed the shifts in business investments in online media networks and channels. Also, the piracy of digital content has a disruptive force to lower revenue generation. This threat is more prevalent in markets having weak legal checks on content piracy. In brief, this segment of SWOT analysis has revealed that the Disney Company must enrich its competitiveness while shielding the business against content piracy and technological disruption.
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