Free Essay - Walt Disney Analysis

Walt Disney is one of the leading brands in the entertainment arena around the world. One of the company's missions is to provide entertainment globally. The mission has enabled the company to become a dominant force in the entertainment industry. For decades, the company has placed its focus on art as a source of entertainment expanding up to theme parks as a source of entertainment and revenue. Despite being a dominant player in the industry, the company still faces some threats in the industry.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Order now

EFE Matrix

Walt Disney has a lot of opportunities when it comes to a stable political environment. Having a stable political climate means that the company can conduct trade freely across borders and locally (Brown, 2019). For decades, Walt Disney has enjoyed peace among countries with governments offering policies that work in favor of the company, such as protecting intellectual rights.

Another opportunity that has come from stable environments is customers increasing their preference for spending on leisure activities (Brown, 2019). Theme parks and cinemas have been the highest selling point for Disney as a result of increased consumer spending. With customers willing to spend more on entertainment, the company has the potential to capitalize on it.

Also, with the increase in research on the entertainment industry and the rapid growth of online consumers, there is an opportunity whereby the company can capitalize on bringing consumers Video on Demand and other online content as companies such as Netflix have managed to do over the past few years.

The only threat to the company's progress is the increased trade standoff between the US and China which has the potential to disrupt a significant market share for Disney or increase tariffs for importing Walt Disney portfolio into China. The most recent case being the denial of The Avengers: Endgame screening extension in China (Yiu, 2019). Also, the increased cases of piracy as a result of advancement in technology threatens to hurt the company's revenues.

CPM Matrix

Through the Walt Disney studios, the company has been able to make a name for itself over the years. Disney owns an array of channels such as ESPN and Disney Channel. The company also operates the ABC TV Network. When compared with other competitors such as Comcast and Time Warner, the three competitors have a considerable war chest in terms of advertising. In the financial year of 2018, both Disney, Comcast, and Time Warner earned a respective revenue of $59.4, $94.5, and $31.3 billion respectively ("Compare companies - Craft", 2019). The amount of revenue allows for the three companies to invest in brand image and advertisement. The three companies have a brand image developed over the years. Disney, however, has dedicated most of its efforts on innovation which has resulted in the development of good quality product portfolio which is significant compared to those of Comcast and Time Warner. The strategy has seen Disney attain customer loyalty and a significant market share compared to the other two as evidenced by the overall score of 3.45 compared to Time Warner's 3.32 and Comcast's 2.98.

MPM Matrix

Disney Studios has competitors ranging from Comcast to Time Warner. Disney as a franchise excels more in children industry compared to its competitors. From the illustration on the Market Positioning Map, it is evident that Disney has more market share in the children's department, and most of its content is tailored to suit a young audience (Winsor, 2015). To keep up with the competition; however, Disney can diversify its portfolio to match with that of its competitors by providing more adult content. One of the desirable characteristics that consumers perceive of Disney is that they air age-appropriate content for the children. Most of their content is considered educational and entertaining to the niche it is designated (Winsor, 2015). The company, therefore, has focussed more of its attention to creating content for children.

Conclusion

Disney is a critical player in the entertainment industry. Having been in the industry for decades, the company has enjoyed success. The company attributes its success to the stiff competitive strategies and the market opportunities presented to the company. Despite the success, the company still faces challenges coming from competitors such as Time Warner and Comcast, who are other significant players in the industry. Other threats come from shifting consumer preferences and the increased cases of pirated content. Despite all these challenges, Disney is in a position with significant opportunities to advance its market share by capitalizing on new opportunities.

References

Brown, L. (2019). Walt Disney Company PESTEL/PESTLE Analysis & Recommendations - Panmure Institute. Retrieved from http://panmore.com/walt-disney-company-pestel-pestle-analysis-recommendations

Compare companies - Craft. (2019). Retrieved from https://craft.co/compare?companies=the-walt-disney-company%2Cviacom%2Ccbs%2Ctwenty-first-century-fox%2Ctime-warner%2Ccomcast

Mary Winsor Ms, R. (2015). The Magic of the Mouse: An Exploration of Brand Personality in The Walt Disney Company. University of New Hampshire Scholars' Repository.

Yiu, K. (2019). Chinese media turning up the heat as US-China trade war drags on. Retrieved from https://abcnews.go.com/International/chinese-media-turning-heat-us-china-trade-war/story?id=63315423