Walt Disney - SWOT Analysis

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SWOT analysis refers to the study that any organization undertakes to identify its internal and external strengths and weaknesses either we can more comprehensively say that its internal strengths and weaknesses and external opportunities and threats. So this matrix provides a detailed list of all of the weaknesses and strengths that make company weaken or strengthen and also external opportunities that company can avail and threats that can be overcome before they are at hand. Following matrix basically known as TOWS strategic alternative matrix.

In this matrix we examine that

• SO strategies: these are called Maxi-Maxi strategies and lets you maximize your opportunities by using strengths
• ST strategies: These are the Maxi-Mini strategies that lets you use your strengths to reduce threats
• WO strategies : These are the Mini-Maxi strategies that lets a company to minimize its weaknesses by using the available opportunities
• WT strategies : These are the strategies that lets the company to minimize the weaknesses and aver threats and know as Mini-Mini strategies

Walt Disney - Competitive Profile Matrix

                       

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The Competitive Profile Matrix has been applied to Walt Disney and how they rate with regards to their closest competitor, Time Warner and Viacom Inc. Although this method of analysis provides some insights to the competitive landscape, it must be noted that the two competitors do not operate along the same lines. Disney has carved out its own niche position over the years and it operates through a unique portfolio that only directly competes with Time Warner on one front and Viacom Inc.Therefore, this analysis should only be considered on a superficial level.

Walt Disney - Internal Factor Evaluation

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We can describe internal factors as strengths and weaknesses if we are using SWOT matrix. So these are the factors that affect the performance of the company internally.

Strengths can be described as all of those factors that are internal and support internally the outcomes of the company. In short by making the best use of these resources we can boost up the performance of the company to its optimal level.

Weaknesses are the factors that work totally against the healthier and successful outcomes of the company.

Below are the internal factors of Walt Disney their weights, rates and weighted score that how they affect the company and in what intensity.

Walt Disney - Key External Forces Impacting the company 2

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Porter’s Five Forces of The Walt Disney Company

    
Degree of Rivalry 
- Direct competition between Pixar / Dreamworks
- Theme parks
- Brand must always make animation – foundations
- Disneyland/world unique
- Most famous animation brand
- Exit barriers, can’t leave a market without affecting other products

Supplier Power
- Due to high prices charged on merchandise by Disney, suppliers up prices
- Lots of different revenue streams, high cost to switching suppliers
- High amount of merchandising
- Supplies to parks, TV, merchandise, shows etc.

Threat of Substitutes
- Buyer has low differentiation between companies
- Buyers switching to Dream works
- Low threat from other film companies – always a market for animation
- TV Channels

Threat of new entrants
- Huge superpowers in the market in Pixar and Dream-works
- Costs a lot of money to create
- Disney Dominates the Market
- Disney TV

Buyer Power
- Hugely established brand
- Lots of wings of the company, involved in lots of markets
- Lots of revenue
- Household Name
- Lots of Controversy

External Factor Evaluation of The Walt Disney Company

Walt disney- Key External Forces Impacting the company

   

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     Competitors

    

.          Time Warner Company
          

               Time Warner Inc., a global leader in media and entertainment with businesses in television networks, film and TV entertainment and publishing, uses its industry-leading operating scale and brands to create, package and deliver high-quality content worldwide through multiple distribution outlets.
      

      Viacom Incorporation
          

                Viacom Inc. (short for Video & Audio Communications) is an American global mass media company with interests primarily in, but not limited to, cinema and cable television. As of 2010, it was the world's fourth-largest media conglomerate, behind The Walt Disney Company, Time Warner and News Corporation (now 21st Century Fox). Voting control of Viacom is held by National Amusements, Inc., a privately owned theater company controlled in turn by billionaire Sumner Redstone.

Fox Broadcasting Company

          The Fox Broadcasting Company commonly referred to as Fox or the Fox Network, and stylized as FO is an American commercial broadcasting television network that is owned by the Fox Entertainment Group division of 21st Century Fox. It went on to become the highest-rated broadcast network in the 18–49 demographic from 2004 to 2012 in the United States. The Fox Broadcasting Company and its affiliates operate many entertainment channels internationally, although these do not necessarily air the same programming as the U.S. network.

Walt Disney - Introduction

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For more than nine decades, the name Walt Disney has been preeminent in the field of family entertainment. In 1923 Walt Elias signed a contract with M. J. Winkler to produce a series of Alice Comedy; this date is considered the start of the Disney Company first known as The Disney Brothers Studio. The existing CEO of Walt Disney is Robert A. Iger and Jay Rasulo. From humble beginnings as a cartoon studio in the 1920s to today's global corporation, The Walt Disney Company continues to proudly provide quality entertainment for every member of the family, across America and around the world. Its headquarters are situated in Burbank, California. Disney is made up of five business segments: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products, and Interactive. Walt Disney is one of the world’s leading entertainment and information providing company. Its top competitors are Twenty Century Fox Inc., Time Warner Inc., and NBCUniversal Media, LLC. The Walt Disney Company’s globally-known consumer brands include: Disney, ABC, ESPN, Pixar, Marvel and Lucas Films. Disney is an S&P 50 company listed on the New York Stock Exchange. Its revenue is $42,278 million and profits are $5,682. It rank No. 1 in Entertainment, Innovation, People Management, Use of Corporate Assets, Social Responsibility, Quality of Management, Financial Soundness, Long term Investments, Quality of Products/Services and Global Competitiveness.

VISION STATEMENT

“To make people happy”

Their vision may include:

• Be the leader in the delivery of entertainment experiences.
• Be the premier channel for sports experiences and information.

MISSION STATEMENT

Creativity + Innovation = Profits

The mission of The Walt Disney Company is to be one of the world's leading producers and providers of entertainment and information. Using our portfolio of brands to differentiate our content, services and consumer products, we seek to develop the most creative, innovative and profitable entertainment experiences and related products in the world." 

COMPONENTS