disney case analysis

7/31/2019 Disney Case Analysis

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C l i c k

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D I S N E Y C

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N A L Y S I S


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Group members Imran Khan Sajid Mahsud Sharoze Malik


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Propose Vision

To be the best company in the world in the eyes of our

customers, communities and people. We expect anddemand the best we have to offer by always keepingDisneys values top of mind.


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Mission

The mission of The Walt Disney Company is to be one of

the world's leading producers and providers of entertainment and information. Using our portfolio of brands to differentiate our content, services andconsumer products, we seek to develop the mostcreative, innovative and profitable entertainmentexperiences and related products in the world.


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The mission statement seems almost as if it is outdated. Forexample, Walt Disney is already one of the worlds leadingproducers of the goods and services it markets. Therefore,there is no direction or purpose inherent in this statementother than the maintenance of its current position.Furthermore, Disneys Media Networks accounts for the largestrevenue generator (57%) among different SBUs. However, it

almost seems as if the role of information provider issomewhat downplayed by the restating of their dedication toentertainment in the second part of the mission statement.With these criticisms in mind, an updated version of themission statement will be proposed.


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Propose Mission

The mission of The Walt Disney Company is to be the

largest and most trusted producer and provider of entertainment and information. Using our portfolio of brands to differentiate our content, services andconsumer products, we will become the most responsiveand adaptable to serve the needs of the consumers inour target markets. We will maintain our integrity andadhere to the core values upon which our company wasfounded as we create the most innovative and profitableentertainment experiences, most reliable and relevantinformational services, and related products in the world.


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Competitive Profile Matrix


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External Evaluation Matrix


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Disneys External Factor Evaluation reveals that theorganization operates within an incredibly complex

environment, yet, it has a plethora of opportunities. Theseopportunities can be generally reduced into one of twoactivities; they vertically expand into new market segments orhorizontally expand into new markets all together. Theopportunities also generally require an innovative approach tomanifest their success, in which Disney has rich supply of historical examples.

The major threats that Disney faces include protecting theirintellectual properties, especially in the Studio Entertainmentdivision, as well as threats generated by an economicdownturn. Most of Disneys products and services are priced ata premium and therefore subject to risk in a recessionaryperiod. Another major threat is the fierce level of competitionthat each SBU faces independently. There are several

competitors in the Theme Park industry but when it comes tomovies and television, the number of rivals are too numerous


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Disneys internal strengths are composed mainly of thecompanys innovative leveraging of its financial prowess andtremendous brand recognition to move vertically andhorizontally into new markets. Innovation has been at the coreof Disneys organizational culture virtually from day one. Thefact that their portfolio is so diversified also offers thecompany substantial advantages in terms of risk mitigation.Consequently, this offers a layer of protection against anymacroeconomic turbulence.

One major weakness that Disney is currently facing is thereturn on investments allocated to the Studio Productions. Thisis undoubtedly a consequence of piracy in the movie industry.

The case mentions the loss of income generated in terms of the required investment as a major concern for the company.Disneys diversity offers a competitive advantage in the movieindustry when compared to other production firms that onlyoperate in that one particular industry. However, the loss of

the profit margins that movies once generated is a troublingpredicament for management.


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SWOT Analysis

Strengths Stable Revenue and Profit Growth Diversified Portfolio Tremendous Brand Recognition

Responsiveness to Markets Substantial Asset Holdings

Weaknesses Top Tier Management Turnover Redundancy in Business Functions Due to SBU

Structure Inclusion of High-Risk Investments in Holdings

Lack of Corporate Control over Divisions


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Cont..

Opportunities Continued Growth

through FurtherDiversification

New MarketsAvailable forExpansion (Foreign

disney case analysis

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