Disney's Five Forces Analysis For The Walt Disney Company

Walt Disney Case

GBA490

Siyi Yang

Content 1. Issues & Recommendation

2. Industry and Competitive Analy

• Dominant Economic Characteristics

• PESTEL Analysis

• Five Forces Analysis

• Drivers of Change in the Industry

• Current Strategy

• Competitor Analysis

• SWOT Analysis

• Financial Analysis

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Overview & History

The Walt Disney is a media and entertainment company having a business line up which includes resorts and theme parks, motion picture production and distribution, eight local television stations and a variety of other businesses that exploits the company’s intellectual property. The company’s revenues increased from 35.5 billion Dollars in 2007 to 40.9 billion Dollars in 2011

Five Forces Analysis

Threat of New Entrants

The problem that new entrants pose the Walt Disney Company depends on the potency of the barriers, and its response. This threat of new entrants to Walt Disney industry is very low since it has established itself with a significant dignity in filmmaking and media networks. The development of internet supply channels is making this less important with its immense and accessibility distribution prospects. Competition From Substitutes

The high threat of substitute services and products is very probable and likely in this sector because of the innovations in other companies. The Walt Disney Company is making moves to expand and increase services presented to customers. The company has countered this problem with the presence of 3D capable screens that children and families are willing to pay high prices to enjoy. Buyer Power

In the entertainment sector, the bargaining buyer’s power is high, but if low cost choices are available, most families will choose them. Buyers have a very wide range of programming to choose from. Globalization also adds the bargaining power of the

The company is divided into a number of strategic groups For example; studio entertainment, parks and resorts and media networks broadcasting. All these are based on the pricing, presentation and the market. The Disney products include; Disney hard lines, soft lines, toys, publishing and editions. Major Desney parks and resorts are Walt Disney World, Disneyland, Tokyo Disney, Disneyland Paris, and Disney vacation club. Media networks broadcasting includes; Disney-ABC television, Walt Disney Internet Group, ABC radio and ESPN Inc. Studio entertainment includes; Miramax films, Buena Vista records, Hollywood records, and Walt Disney records

Swot Analysis

Strengths

1. A Strong portfolio. The Walt Disney Products are one of the most watched channels and the company’s portfolio gives a competitive advantage over other entertainment industries.

2. Brand reputation. The company’s brand has been known for many years and is recognized worldwide. It is seen as the only family entertainment producer in the U.S.

3. Diversified business. The company has the five business branches: Parks and resort, media networks, studio environment and consumer products

Weakness

1. Walt Disney depends more on income from North America as 75% of its revenues come from the US.

2. There are fewer opportunities through acquisitions for significant