Walt Disney Company Notas

7/27/2019 Walt Disney Company Notas

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Strategic Business Unit

WDC operates under a strategic business unit

model. Their four SBUs consist of:

Disney Consumer Products,

Studio Entertainment,

Parks and Resorts, and Media Networks and Broadcasting.

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Creativity and innovation are synonymous with

the Walt Disney brand, largely because of the

company's strong mission. One of the reasons

why Disney has a reputation of delivering a

seamless "magical" experience to its guests in all

of its operations - theme parks, hotels,

restaurants, retail stores, etc. - is because it hasone overriding vision and mission for all of its

business operations.

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entertainment

Disney motion pictures are distributed under

the names Walt Disney Pictures and

Television, Touchstone Pictures, Hollywood

Pictures, Miramax Films, and Buena Vista

Home Entertainment International, which

includes Walt Disney Records, Buena Vista

Records, Hollywood Records, Lyric StreetRecords, and Disney Music Publishing.

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. As of September 2008, Disney had released:

928 full-length movies

80 full-length animated features 546 cartoon shorts.

Product offerings include Pay-Per-View

Pay Television

Free Television

Pay Television 2

International Television.

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Because Disney, and the industry in general is brokenout into segments,

a market positioning map must take the differentsegments into account.

Overall Disneys primary competitors are Time Warnerand CBS Corporation. While these competitorsdirectly compete with WDC in Media Networksegments, they are not rivals in Consumer Productsand Parks and Resorts and Consumer Products so we -will look at those segments separately.

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After creating the SWOT analysis and reviewing the internal factors anumber of strategies emerged. The top strategies are listed here. Theones in bold were the strategies selected for the QSPM analysis which wewill discuss later.

R&D (RESEARCH AND DEVELOP) into storytelling to kids throughtechnology highlights WDC strength of the creative process. Additionally,WDC was based in storytelling and has expanded. WDCs competitorshave less of a history in the area of childrens stories which gives WDC theedge.

One of WDCs weaknesses is high sunk costs, but an opportunity is toexpand more internationally. The strategy of targeting three new marketsand developing expansion plans touches the high sunk costs as theycould expand a segment that doesnt have the as high sunk costs whichgives it the potential to more quickly be a revenue producer.

Lastly, digitizing content. This strategy touches the high sunk costweakness, high risk factor, as well as the opportunities and threats thattechnology brings. By digitizing content including advertising, media etcWDC can save money on print, get things out quicker and utalize othersegments to do it. This again is an advantage WDC has over itscompetitors because its primary competitors the vast diversification that

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Disney and Time Warner are most closely related.Disneys market captialization is at 39B, followed by TWat 26.28B and CBS a distant third at 4.31B. The rest of theindustry totals 499.59M In terms of revenues Disney and

TW are close, but Time Warner sneaks ahead49.98B toWDC 36.99B.

capitalizacin del mercado, es una medida de unaempresa o su dimensin econmica, y es igual al precio

por accin en un momento dado multiplicado por elnmero de acciones en circulacin de una empresapblica, e indica el patrimonio disponible para la compray venta activa en la bolsa.

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As we mentioned earlier, the WDC has a varietyof competitors because of their many segments.The primary competitors that most closely matchWDC are Time Warner and CBS. The chart here

shows the comparative data for the industry.Disney is most closely matched by Time Warnerand as you can see in the Industry column, thereare many other players in the industry that make

up the rest of the market share. Also one shouldnote that Disney if more diversified in itssegments than Time Warner.

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The competitive profile matrix also shows thatTime Warner and Disney are closely related onvarious issues with Disney showing the slight

edge. Again, because Disney is much morediversified than most organizations within thevarious industries we must look at largerfactors that would cover all segments. Disney

edge comes from product quality and globalexpansion. In the other areas Disney is quitesimilar/close to Time Warner.

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Disneys primary competitors in the consumer

products segment are Warner Brothers and

Fox followed by Sony, Marvel and

Nickelodeon. Disney is likely the largest worldwide licensure of character-based

merchandise and producer/distributor of

childrens film-related products based on retailsales.

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There are more than 400 amusement parks in theUnited States. The magic kingdom at Walt DisneyWorld in Florida is the most visited amusement park inthe world. Disney doesnt have much strong

competition in this area. The second largest companyafter Disney is Six Flags with 20 parks around theworld. Ocean Park is the other competitor and islocated in Hong Kong. The park receives more than 5million tourists each year and are planning new parks.

It also seems that Hong Kong residents are thatimpressed with the small version of Disney built thereand in 2009 Disney reached an agreement to enlargeHong Kong Disney.

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Based on their market position in their different unitswe have identified four strengths and weaknesses ofthe organization as a whole. We will use thesestrengths and weaknesses throughout this analysis,

and ultimately combine them with the opportunitiesand threats to begin to develop strategies.

Based on the competitors, state of the industry andindustry trends we have developed four opportunities

and threats for the WDC. Because WDC is so diversifiedwe tried to look at opportunities and threats (as well asstrengths and weaknesses) that apply to as manysegments as possible.

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In the SWOT analysis we now put together the various parts wehave discussed previously in this presentation. The SWOT analysishelps us to see everything together in context so that we candevelop the best strategies to best capitalize on strengths,strengthen/mitigate weaknesses, utilize opportunities and mitigatethreats. The SWOT analysis brought out a number of potentialstrategies. The letter and number in parentheses reference thestrength or weakness the strategy addresses while its line itemaddresses the opportunity or threat. Any number of additionalstrategies could be added, but we want to look at the strongest andmost attractive strategies for implementation. Any strategies eithernot listed here, or not selected for further evaluation in the QSPMmatrix should be noted and banked for the future when they mightbe more attractive given the right circumstances.

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Implementation and financing

After developing strategies and

recommendations, is now time to see how

they can be implemented and financed. If a

strategy cant be financed or implemented

successfully it could ultimately cost the

organization more money and during a

recession that is not something anyone wantsto happen.

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Strategy

Now that we have looked internally and

externally we will take all this information and

formulate strategies for the WDC to use. To

do this we will create a full SWOT analysis thattakes our strengths, weaknesses,

opportunities and threats and will use them to

develop strategies.

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As the first competitors slide on market share

shows there is a lot of money to be had in these

industries. Over the last few years new trends

are emerging that affect WDC and itscompetitors. These trendsincluding HD, 3-D,

mobile content and consumer-centricityaffect

many aspects of the organizations from R&D tocustomer service. And they all affect the bottom

line and competitive advantage.

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