1. Rivalry among existing firms(competitors)
Competitiveness of enterprises and the current does not play a very important role in Disney’s external business environment. That is true, the company’s very high exit barriers. In addition, the ability to increase in a very large investment. Therefore, there is no strong direct competitors Disney’s business. Competitors, such as “Lonely Tunes” retail stores bear the expensive advertising to gain market share.
2. Bargaining powers of customers
The bargaining power of customers is high in the service and entertainment industry. Disney’s business running smoothly requires a lot of customers; the customer has a certain power. For example, if a specific home video price is too high, customers may not be willing to spend the money needed to buy the product. Another example is in the Disney theme parks charge entrance fees. The customer is willing to pay the maximum amount is $ 33. In addition, the entertainment industry does not save the buyer money. Instead, it is to design a way, it will enable the buyer to spend more money. The majority of Disney’s product portfolio, focusing on the invisible return on the buyer’s money. Some customers may not realize that they are getting such returns may increase the bargaining power of customers.
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3. Bargaining powers of suppliers
The bargaining power of suppliers is moderate. Walt Disney Company in a highly differentiated and unique industrial operation and high switching costs associated with the business, suppliers mainly by a handful of companies, is most likely very concentrated. However, Disney is unique and important customer for many suppliers. In addition, the size of the company certainly is a big advantage. Can be ordered from the sole supplier of a large number of unique products, will create a dependency in the same industry.
4. Threats of the substitutes
The threat of substitute products or services is moderate to low. Obviously, the other cartoon characters, theme parks and movie to the Disney business market, but I do not think this is a more obvious threat. The Walt Disney Company has been placed in the ceiling prices of many of its product line, and should be able to compete with new competitors. However, the threat of new entrants in the market alone, requiring Disney to hedge this risk, while improving the products and services.
5. Threats of the new entrants
Walt Disney Company has been able to find a very unique niche in the industry; the barriers to entry are relatively high. The company has been able to grow in a very long time and has been in research and development, marketing, and financial sector department. Relying on past experience, company officials also known as target customers want. Disney spent a considerable number of home entertainment market, it will be very difficult for such a new organization, the development of brand recognition or identification, product differentiation.
Disney has focused on market diversification, covering a wide range of products and services. As the market leader, the company may be economies of scale in production practice. For example, only two months to sell over 500,000 copies of “Pinocchio” videos, there are 20-30 million people, its theme parks each year. In addition, extremely large amounts of money into the industry’s new entrants. Only very large companies able to meet such a huge capital requirements. Finally, the policy of the Government on the industry seems to be very beneficial.
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SWOT Analysis
* Strengths
Disney’s main strengths are its resources, experience in the business, its low-cost strategy. In addition, the company has apparently developed a very powerful and well-known brand name for many years. Theme parks around the world and publish generations of children to the film, the Disney brand is one of the best-known brands in the world. In addition to the name of Disney, Walt Disney World is able to use many of its cartoon characters such as Mickey and Minnie Mouse, Cinderella, Winnie the Pooh, in order to attract customers to the brand influence. Disney has expanded its holdings include Mirimax movie studios and Pixar Animation company to make it a bigger brand and the number of characters. The company also has been able to diversify its business and products, to reduce the sales of the product line.
In recent years, it has been transferred to a theme park entertainment, movies, merchandise, radio, television and network. It is also effective in the world to diversify its business from the U.S. to Japan and Europe. The main advantages of internal resources to human resources and financial stability. Research in Disney employees are very innovative in recent years, they have produced a production of some box office. A Company without a new idea is a failure in today’s competitive business environment. Low-cost business strategy is for the interests of the company. The company can control costs, but also to produce high quality products and services. Financial risk has been reduced to the maximum number of initial investment cost sharing and external participants.
* Weaknesses
Companies always have internal weaknesses. Disney’s main weakness is a very large work force, and the frequent changes in senior management and higher management costs. In 1991, the company has 58,000 employees. In fact, this represents a possible communication issues, high level of bureaucracy within the company. Through diversification into more businesses and niches, the company’s work force will be increasing, organizational structure, to support the expansion of the work force. In fact, the company frequently change their personnel, so that more complex corporate structure. There are many positive things, to accompany the change, but change with the huge expenditure.
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... the Walt Disney Company has strong brand reputation. Brand Value Listed 27th in the world’s 500 most valuable brands ($ 20,548 million brand value in 2013 • $ 23,580 million brand value ... n.d). (Table 1, Appendix 1: There are five business segments of the Walt Disney Company) 3. External analysis: Basically, there are three terms for ...
The Disney brand has its own problems. Disney faced one of the biggest problem is its high price. While many parents want to give their children a pleasant experience, many people may not do so because they often want to contract with Disney’s high prices due to financial problems. This is one of Disney’s negative impacts, because they have lost potential profits. Another problem is the most important, their ads on their main customers, who is the target of 4-12 years. It seems like not a bad idea, however, it is necessary to remember that the parents of these children have purchasing power; therefore, more advertising for them is to show them they can get the interest of the children.
Walt Disney World, including several different holiday theme parks, including the future of the world, Animal Kingdom, Magic Kingdom. In addition, they also opened up two water parks, Typhoon Lagoon and Beach Blizzard. They are also attracted to the ESPN sports around the world to expand beyond their traditional brand. In the top of all this, Walt Disney World operates several hotels and campsites. This diverse product portfolio may represent a weakness, because the management and other different products can reduce efficiency, resulting in a lack of strategic focus.
* Opportunities
Opportunities include the following; the positive attitude of the Government, the business access threshold is significant, while the entertainment industry itself. On the other hand, has been very successful brand, Disney has a lot of opportunity to promote their profits. “Disney Imagineering” program is a way to work with the Disney people to stay on the latest technology updates, and can always find new and innovative ways. It helps ensure that Disney is always ahead of its competitors. Walt Disney World provides an opportunity to create exciting new attractions will attract new visitors.
It has an opportunity to get involved in the innovation and the actual consumers, and even further expand. They can create a way for consumers to tell them something new, they want to see Disney’s return, which will help their ideas straight from the consumer’s mouth. Another good opportunity is consumers trust the brand. Easy transition to the new ideas and success and trust of consumers. Help with activities of the IMC, Disney can give them an opportunity to promote their second target market; this is the parents to bring them the benefits of their children to Disneyland. In addition, exercise can become positive high prices, the price of many grants to negative.
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* Threats
The combination of Disney’s biggest threat to the future of the company’s revenue and cable broadcasting. The main threat to the Walt Disney Company, including the following; of the oversaturated market, political and economic aspects of a global scale, and foreign competition. As the supply of services and products in the entertainment industry has saturated the market, competition will become more intense, and only the strongest companies will be able to survive. I believe that Disney has used this risk, because it has a certain extent, its business diversification and globalization, but at the same time, the company services or entertainment business. Its business, such as network television department, and some may not be able to handle the pressure of the cable giants such as Turner Broadcasting System.
World politics and global economic conditions related to the market capacity. The economic recession may make people use the services and products provided, it was too expensive. I should point out that the company’s own macroeconomic forces, because it has diversified its business around the world. It is reported that the economic downturn, and rarely strike in the entire world economy.
The game is always the threat of a company. Barriers to entry are relatively high; out in the business of the company, the new competitive threats cannot be excluded. According to the Danjel Lessard and Lauren Northcutt, Walt Disney World, the main threat to other resorts, theme parks such as Universal Studios, this is in competition in Orlando. In addition, competitors in their geographic area, Walt Disney World may have lost a large number of theme park, is open throughout the United States and around the world customers.
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Table of Contents Purpose Statement 1 Executive Summary 2 Business Information 3 Personal Financial Statement 3 Business Description 3 Business History 4 Personnel and Organization 5 Marketing Information 6 Market Analysis 6 Market Research 6 Competitors 7 Market Segments 8 Target Market 8 Marketing Mix Strategy 9 Products/Services 9 Promotions 9 Distribution 9 Pricing 10 Suppliers 10 Marketing ...
These theme parks may be stolen or may Disney World Tour of tourists. Movies and IPTV sector is also very dangerous. In these two areas of operation, Disney is the intruder; there are several very strong competitors. A less obvious threat from the new cartoon characters. Per day of television programs, and overseas cinema a new cartoon character. It may be able to beat the international and domestic limited market share war? Only the next generation of cartoon lovers can answer this question.
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