The Walt Disney Company Strategic Analysis

The Walt Disney Company Strategic Analysis

How Walt Disney Company Strengthens Competitive Position

The Walt Disney Company is a multinational U.S. firm that deals with mass media and entertainment products and services, and headquartered in California. The company has advanced its competitive moves in the mass media and entertainment industry to achieve long term competitiveness that overrides those of the competitors. The company is known for the creation of contents that are relevant and appealing to the target audience. The company also dominates the market effectively and is involved in a series of interventions to achieve the competitiveness and to lead the mass communication and entertainment industry in the U.S. market and in the world (Thomas, 2017). The company has wide knowledge of brand and commands large loyalty from its consumers. This brand recognition enables for the competitiveness and also in acquisition strategies that make Walt Disney to be a brand company. Since 1928, Disney has been a childhood entertainer for the viewers and also involved in a series of activities that promote the welfare of the communities around the world. Furthermore, the company has the resource base and revenues that enable it to acquire competitors, which has increased its brand loyalty and control of the entertainment and mass media industry for years and counting. 

Diversity of the products

Disney operates the largest media networks across the United States, including cable networks, radio networks, digital operations, and broadcast operation networks, which give lots of revenues. The majority of the company’s revenues come from broadcasting and cable networks such as ESP, worldwide channels, and the ABC networks. The company has also improved its income through advertisement platforms and the rates through such contracts as NFL, NASCAR, and college football. The revenues from this organization has improved effectively and has achieved all time revenue increment through the procedures and processes that make Disney better than the competitors (Madera, 2013). The company’s goals are to maximize the revenues and improve the brand loyalty that makes it competitive to get its goals better. Through the advancements in technology, the company has advanced its content creation and production to enhance the activities in the long run. Disney Company has a series of platforms that provide digital contents to the audiences across the diverse population in the United States and globally.

Application of technology 

One of the leading strategies that Disney has perfected includes the application of advanced technology in exploring the global market to advance the pressure on the competitors. The company is on offensive charm to improve its international franchises and to monetize their operations to achieve its competitive edge. The increased international presence of Walt Disney Company has been a result of increased operations and use of technology to influence the outcome of its engagements in industry. Furthermore, through acquisition, Disney has increased its operation to emerging markets worldwide and facilitates knowledge and content transfer to cover the remote location, thereby connecting the communities and their activities. The company has increasingly adapted to the changes in a technological environment and the digitalization of contents in the domestic and overseas markets, which is improved through research and development activities (Wasko, 2013). For instance, before venturing in different markets, the company has to conduct the intensive R&D activities that promote the use of technology and its brand awareness to create the required impression in the market. 

Research and development subsidiaries

Therefore, research and development are ideal sources of strategic management for Walt Disney Company and its bid to remain competitive and responsive to the global and domestic challenges in the industry brought about by technology. Disney has often dreamt big and has never stopped focusing on impacting the lives of its esteemed clients all over the world through its different segment of the media industry. The company has placed strategic business management efforts, which are generic in nature, has effectively focused on improving and developing innovative and customer-oriented products that are relevant across different segments. Therefore, the company’s innovative strategies through technology and research and development have seen increased launching of new products that respond to the customer demands (Hou & Reber, 2011). Therefore, the company is concerned with maximization of benefits to achieve the ultimate outcome as aligned to the objectives embedded in values and mission and vision statements of the company. By introducing technologically-enhanced products in the market, the Disney Company has been able to achieve the resultant responses geared towards improvement of revenues and income base and brand loyalty and awareness. 

Product-related strategies 

Production of movies and documentaries for both domestic and international markets has improved the products that consumers are exposed to, and this includes the activities that focus on the achievement of consumer feedback. Through innovation and alignment to product-oriented development strategies, the company has achieved long-term goals and objectives to promote its values to the consumers and generate revenues and benefits that make it a generically productive market. Walt Disney’s assessment of Porter’s model underscores the importance of differentiation in promoting the company’s competitive strategies and to venture into new markets with ease and efficiency (Ingelsson et al., 2012). Each market segment is offered an ideal product, which solves the challenges that could arise in terms of price, tastes, and preferences that promote allegiance to the company’s goals and objectives. Differentiation is one of Disney’s generic strategies to access different markets by offering the products that solve distinct problems of the consumers. For instance, the family oriented perspectives include the offering products that are important to the institution values and principles of different families in the world.

Differentiation strategy

Furthermore, entertainment is also branded with the most updated version, high quality products, and the essence of research on the possible outcomes in the long run. Through the Walt Disney Imagineering Research & Development subsidiary, the company has focused on the uniqueness of products and assessing the needs o consumers. Therefore, the products produced directly have a role to play in the consumers’ minds, such as education, entertainment, and information about issues such as socio-cultural, political, and economic perspectives of society. The differentiated competitive advantage strategy has catalyzed the ability of Disney to achieve a competitive advantage over its rivals in the industry and focus on possible outcomes that make it the most valuable company in the industry. Gallagher (2012) concluded that differentiation is ideal for achieving business growth strategies in Disney Company based on the goals and research conducted across different subsidiaries. Therefore, the insistence and focus on product as the core competitive advantage through the uniqueness and quality makes the company to be beneficial and easily liked by most consumers across the world. The research has often focused on the people and how their needs can be addressed in the most ideal ways that make them feel that the company is working for their interests. 

Disney’s Strategies on Global Marketplace

Being one of the multinational companies in the media and entertainment industry, Disney has perfected the art of marketing research and improved its entering behavior to emerging markets. For instance, to gain access into markets, the company employs the 4Ps of marketing to achieve the ultimate results and to possibly improve its success rate in these locations that other competitors have ventures. Again, the company’s corporate mission and vision statements highlight the importance of differentiation in marketing success and create brand loyalty instead of the competitors’ strategies such as price leadership. Differentiation is an important marketing strategy that has kept Disney in the leading role in the industry and elevated the chances of retaining the market leadership roles for longer duration of time (David, 2011). Differentiation strategies include the use of distinct logos, colors, themes, and values that are synonymous with the goals and objectives of the company. The achievement of growth at Walt Disney is partly related to market penetration strategies, increasing the company’s sales outcome and revenue base. 

One of the strategies of exploiting the marketing opportunities in the global scene include intense advertisement and promotional activities that makes the company very productive and able and appealing to the consumers and other stakeholders. Advertisement communicates the values of the company’s products and services, even where the competitors are doing pretty well in sales and marketing. For instance, the increased and aggressive advertisement and promotional activities for newly released products into the market makes it possible to enhance the revenues from the market. This is mostly evident in the entertainment products which are newly released, such as documentaries and movies, whose values are highly advertised in readiness for impulsive sales. Ingelsson et al. (2012) understood that advertisement is therefore an ideal tool for making the product’s attributes to be known and to achieve the ultimate strategies that enable penetration of the global market. Advertisement and promotional activities are therefore important for Disney organization’s long-term marketing penetration goals based on the packaging of the products and the emotions it elicits to make the consumers want to buy it. 

Through advertisements, the consumers’ expectations are raised and the main task is therefore managing the expectations to the level that it is able to achieve the long-term sales and marketing goals in global markets. According to the SWOT analysis results of Disney, it is evident that the company uses advertisement and technology as core drivers to accessing foreign markets and to make the consumers’ expectations to be raised in readiness for bumper sales. This is evident in the entertainment segment of the products which are advanced to the consumers for family, clubs, students, and children in very efficient packages and quality production that appeal to the emotions and desires (Hou & Reber, 2011). Management of the customer expectations depends on the effective advertisement about the strength of the brands, which is a core value as it builds the brands to achieve the ultimate results in the long run. This is important in the penetration of markets and to instill presence in these markets to the extent that most of the players would fear venturing due to the high capital required and the already raised expectations that Disney’s advertisements and promotional activities have created. 

Recommendations

Disney should improve its penetration strategies through the improvised techniques that warrant brand loyalty and knowledge by accessing the new markets, raising their expectations, and managing the expectations. Through diversification of the product base, the company can appeal to different categories of the consumer needs, which is an important competitive advantage necessary for marketing penetration. Therefore, diversification at Disney is one of the business growth strategies, which entails developing or acquiring new products that would compete not just domestically but also globally due to their values in the market. One of the typical examples includes the establishing of Disney Cruise Line, which made the company venture into tourism and hospitality industry, based on David’s (2011) assertions. This improves the brand base and portfolio, which is important for the market penetration in the global perspective. Therefore, it is easier to adopt the differentiation and diversification generic strategies since the new products or the existing ones can ride on the company’s brand positioning and existing credibility. Therefore, it becomes easier for the diversification and launching of new products in the foreign market using the existing brand name of Walt Disney, whose credibility and trustworthiness in the market creates a level of acceptance that would improve its own performance in the global marketplace. 

Development of new business in the industry and other sectors is important to Disney is makes it easier to manage the competitive challenges that come such as price leadership and gaining of competitive advantage. Therefore, the company should target several other sectors to become the most diverse and global company in different industries through its brand name. Furthermore, more research and development strategies should be used to make the company viable across the different markets it seeks to expand its influence in the global perspective. For instance, focus on customer care services would improve the performance of the products in different markets which it ventures its influence. Gallagher (2012) underscored the importance of investment in subsidiaries that improve research and development on the new products, promotion of existing products, and in strategic management strategies such as acquisition or amalgamation should be the main focus for the company. 

Walt Disney should also invest in products that improve communities’ basic educative and informative desires, such as documentaries on health, education, and geography. These products are ideal for the whole family viewing hence should be the main target, since other products are already exhausted by other competitors in the global market, such as movies and other entertainment industries. Lastly, stronger focus on technology as a core tool for differentiation and diversification should be the main focus of Disney. Technology is everything, from production, distribution, marketing, and sales, hence should be the core marketing tool that seeks to enhance the uniqueness of the products in the long run to make them responsive to the changes in the industry and customer care practices. The presence of Disney’s brand popularity is an important factor that the company should use in penetrating the existing market and to improve the abilities of the company to become more competitive in the domestic and foreign markets. 

 

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