SWOT Analysis: The Walt Disney Company

The Walt Disney Company is among the leading firms in the mass media, entertainment, and amusement parks industry. The Walt Disney Company has strong cash flows realized from its operations. The company can use strong financial cash flows for investments in the online streaming venture. Online streaming service is an opportunity that Disney need to invest in for it to have a direct to customer service (Sturgill, 2019). The company has strong competencies from its creative, experienced, and competent employees, including graphic designers, story scriptwriters, and artists, among others. It would, therefore, be more comfortable for the company to adopt the new technology of online streaming as it has a capital base and content to offer.

            The company has created a strong brand name across the globe. This gives it an opportunity of venturing into marketing activities with other companies that are seeking market exposure through promotions and marketing of businesses. Disney has a strong and popular brand, which is amongst the most recognizable brands in the entertainment and mass media industry in the world (Yang, 2019). This strength makes it a recognizable and suitable business for entire family settings, including children, youths as well as adults. The strength also considers its growing portfolio of popular products, which are inclined to be positive in relation to its reputation. The strong brand name of the company, therefore, offers the company an opportunity to venture into marketing deals with other companies to realize additional streams of revenues from marketing services.

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            For Disney to convert its weaknesses into strengths, the company should take into consideration the innovations and product diversification. Disney’s business strategies are associated with the weakness of limited innovations. Continuous product improvement is the core area where the company continues to be innovative. However, company operations lack rapid innovations that involve advanced technologies (Sturgill, 2019). For instance, in adopting new technologies, Disneyland theme parks opt for reactive instead of aggressive approaches. The company focuses on the uniqueness and quality of product features as the basic strategy for securing a competitive edge and an intensive strategy for growth rather than focusing on rapid technological innovation. The internal factor becomes a weakness as the international market necessitates technological innovations to differentiate its products and securing a competitive advantage (Chiman, 2019). The company should, therefore, take advantage of its experienced and competent employees to improve the quality and uniqueness of its products through technological innovations.

            The other weakness observed from the SWOT analysis is the company’s limited diversification. The company’s internal strategic factor aims at having a synergy via its business segments. However, to attain an amazing synergy requires investing in closely related businesses rather than diversified dealings in unrelated industries (Yang, 2019). The company, therefore, requires some changes in the company’s management tactics and its core strategies to address the weakness. These changes, coupled with the company’s strong cash flows, can influence it in investing in diversifying operations in related businesses across various regions of the world.

            Disney can mitigate the impacts of its threats by taking a keen analysis of its major competitors. The company faces stiff competition from other companies in the industry as they are adopting new ways of offering their services to customers (Chiman, 2019). For instance, Netflix offers online streaming of its products to customers through online subscriptions by customers. This offers a challenge to Disney as they are both in the same business, and Disney should, therefore, invest in implementing an online platform where viewers can stream their product with authentication of subscriptions.

            Ultimately, the company needs to take action in taking innovative technologies in delivering its products as a measure to counteract the competitions and ensure fulfilled goals and objectives. This measure, especially online stream subscriptions, will enable the company to remain competitive as well as earning extra revenues. The action is necessary for the company to remain competitive and at par with the evolving technology.

References

Chiman, A. (2019, November 28). Disney SWOT analysis 2019: SWOT Analysis of Disney. Retrieved from https://bstrategyhub.com/swot-analysis-of-disney-2019-disney-swot-analysis/

Sturgill, J. (2019). Beyond the Castle: An Analysis of the Strategic Implications of Disney+.

Yang, J. (2019, August). Analysis of Business Operation Management under the Harvard Analytical Framework: A Case Study of the Walt Disney Company. In 1st International Symposium on Economic Development and Management Innovation (EDMI 2019). Atlantis Press.