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Thursday, 28 July 2016

Walt Disney - Key External Forces Impacting the company 2




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


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