Complete A Case Analysis To Analyze A Company's Strengths ✓ Solved

Complete A Case Analysis To Analyze A Companies Strengths

Complete a Case Analysis to analyze a companies Strengths, Weaknesses, Opportunities, and Threats. Read Case 22: The Walt Disney Company: Its Diversification Strategy in 2014. Complete a short Written Case Analysis (3 pages, not including a title page and references page). Choose a model from chapter 3 to perform an external analysis. Choose one of the techniques from chapter 4 in the slideshow to perform an internal analysis. Present your findings as a SWOT report including components of Strengths, Weaknesses, Opportunities, and Threats. Propose an action plan and set of recommendations addressing the issues you have identified.

Paper For Above Instructions

Title: SWOT Analysis of The Walt Disney Company: A Case Study

Introduction

The Walt Disney Company is a global leader in the entertainment industry, renowned for its iconic characters, movies, theme parks, and various media properties. This paper performs a SWOT analysis to examine the company's strengths, weaknesses, opportunities, and threats. The case study focuses on Disney's diversification strategy in 2014, exploring how it positions the company in an ever-evolving entertainment landscape.

External Analysis

For the external analysis, Porter's Five Forces model is utilized to assess the competitive dynamics in the entertainment industry. The key forces include:

  • Threat of New Entrants: The entertainment market has significant barriers to entry, including high capital requirements and brand loyalty. While new players can emerge, established companies like Disney maintain a competitive edge.
  • Bargaining Power of Suppliers: Disney's vast array of intellectual properties limits supplier power, as the company can leverage its extensive portfolio. However, reliance on creative talent can pose challenges.
  • Bargaining Power of Buyers: Today's consumers have more choices than ever, contributing to a moderate level of buyer power. High-quality content and brand loyalty help mitigate this power for Disney.
  • Threat of Substitute Products: With the rise of streaming services and digital content, substitutes like Netflix and Hulu pose a significant threat to traditional media outlets. Disney's investment in its own streaming service, Disney+, seeks to counteract this threat.
  • Industry Rivalry: The competition among entertainment giants such as Netflix, Warner Bros., and Universal Studios is intense. Disney's diverse offerings—spanning film, television, and parks—help it maintain market prominence.

Internal Analysis

To perform the internal analysis, the VRIO (Value, Rarity, Imitability, Organization) framework is employed to assess Disney's internal resources and capabilities:

  • Value: Disney's strong brand equity and comprehensive intellectual property portfolio create significant value. Iconic franchises like Star Wars and Marvel enhance its marketability.
  • Rarity: Few companies can boast such a diverse and beloved collection of characters and stories. Disney's unique position in the market is a key asset.
  • Imitability: While competitors can attempt to replicate Disney's success, its established brand and deep-rooted fan engagement are difficult to imitate. Creative innovation is a cornerstone of its operation.
  • Organization: Disney's organizational structure supports its diversified business model, aligning various segments of the company towards unified strategic goals.

SWOT Report

Based on the analyses performed, the following SWOT report is established:

  • Strengths:
    • Strong brand recognition and loyalty.
    • Diverse revenue streams from film, television, and parks.
    • Extensive intellectual property portfolio.
  • Weaknesses:
    • High dependency on box office performance.
    • Operational challenges in park management.
    • Vulnerability to market downturns affecting discretionary spending.
  • Opportunities:
    • Expansion of Disney+ and streaming content.
    • Potential for international market growth.
    • Partnerships and collaborations with tech companies for innovation.
  • Threats:
    • Rising competition in the streaming sector.
    • Changing consumer preferences towards content consumption.
    • Economic instability affecting theme park attendance.

Action Plan and Recommendations

Based on the SWOT analysis, the following action plan is proposed:

  1. Enhance Streaming Services: Continue to invest in original content for Disney+ and explore partnerships to broaden offerings, catering to diverse audience segments.
  2. Strengthen International Markets: Develop targeted marketing strategies and localized content to increase brand penetration in emerging markets.
  3. Diversity Revenue Streams: Expand merchandise offerings and leverage popular franchises through experiences and collaborations, reducing dependencies on box office sales.
  4. Innovate Theme Park Experiences: Integrate technology, such as augmented and virtual reality, into park attractions to enhance visitor experiences and keep pace with changing consumer expectations.

Conclusion

The Walt Disney Company's robust strengths position it to navigate the challenges of the entertainment industry effectively. By addressing its weaknesses and capitalizing on opportunities, Disney can continue to thrive as a leader in globalization and entertainment innovation. The recommended action plan aims to bolster its strategic positions and ensure sustained growth.

References

  • Barney, J. B. (2019). Gaining and Sustaining Competitive Advantage. Pearson.
  • Burton, B. K., and M. L. N. (2020). Strategic Management: A Focus on Competitiveness. Cengage Learning.
  • Gupta, A. (2018). Case Study: The Walt Disney Company. Business Strategy Review.
  • Hill, C. W. L., & Jones, G. R. (2016). Strategic Management Theory: An Integrated Approach. Cengage Learning.
  • Johnson, G., Whittington, R., & Scholes, K. (2017). Exploring Strategy. Pearson.
  • Koller, T. (2021). The Financial Impact of COVID-19 on Disney. Harvard Business Review.
  • Porter, M. E. (2008). Competitive Strategy: Techniques for Analyzing Industries and Competitors. Free Press.
  • Thompson, A., Strickland, A. J., & Gamble, J. E. (2018). Crafting and Executing Strategy: The Quest for Competitive Advantage. McGraw-Hill Education.
  • Walt Disney Company. (2014). Annual Report 2014.
  • Wheelen, T. L., & Hunger, J. D. (2018). Strategic Management and Business Policy: Globalization, Innovation, and Sustainability. Pearson.

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