Strategic Management of The Walt Disney Company

Running head: MANAGEMENT
Strategic Management (BMO2002)
Name of the Student:
Name of the University:
Author Note:

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Executive Summary:
The aim of the report is to provide insight into the strategic management of one of the most
renowned international company known as The Walt Disney Company. The report commences
with the brief introduction of the company along with a mention of the mission and the vision.
The report then undertakes an external and internal analysis with a mention of the SWOT,
Porter’s and PESEL analysis. The report also mentions the particular strategies related to the
business, functional, international and corporate levels that enables the company in gaining
competitive advantage in present environment. The report also put across recommendations and
future strategies adopted by the company.

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Table of Contents
a. Introduction:.................................................................................................................................3
Company Overview:....................................................................................................................3
Mission:........................................................................................................................................3
Vision:..........................................................................................................................................4
b. An Analysis of the Internal and External Audit of the Organization..........................................4
Porter’s Five Forces Analysis:.....................................................................................................4
SWOT Analysis:..........................................................................................................................7
PESTEL Analysis:.......................................................................................................................8
c. Strategies that Enable the Company in Gaining Competitive Advantage.................................11
d. Recommendations/ Future Analysis the Organization would adopt.........................................13
Recommendations:.....................................................................................................................13
Future Strategies:.......................................................................................................................14
e. Conclusion:................................................................................................................................15
References:....................................................................................................................................16

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a. Introduction:
Company Overview:
The report aims at providing an insight into strategic management of The Walt Disney
Company. It was a multinational company headquartered in America and having multiple
entities. The company was found by Roy O. Disney and the Walt Brothers in the year October
16, 1923. As per the records of 2018, the total revenue of the company stood at 59, 434 million
USD (thewaltdisneycompany.com 2019). Together with the substitutes and the affiliates, Walt
Disney represented one of the diversified family entertainment and media enterprise at the global
level and operated across business segments like Parks, Products and Experiences; Media
Networks; Direct-to-Consumer and International and Studio Entertainment. However, media
network has been the key unit of the company that contained huge array of the company’s cable
channels, television network, associated distribution and production companies, cable channels
and operated and owned television stations across the two divisions ESPN and the Walt Disney
Television.
Mission:
The mission statement of the company referred to “using our portfolio of brands to
differentiate our content, services and consumer products, we seek to develop the most creative,
innovative and profitable entertainment experiences and related products in the
world”( thewaltdisneycompany.com 2019). Thus, the mission statement of Walt Disney lies in
entertaining, inspiring and informing people around globe through unparallel storytelling,
reflection of the iconic brands, innovative technologies and creative minds that make the
company one of the leading entertainment company across the world. The mission statement of

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Walt Disney boils down to content, services and the consumer products, development of most
innovative, creative and profitable content and entertainment experiences and the related
products in work.
Vision:
On the other hand the vision statement of the company refers to “to be one of the world’s
leading producers and providers of entertainment and information” (thewaltdisneycompany.com
2019). Thus, the vision statement of Walt Disney focused primarily on the world, leading
providers and producers and information and entertainment.
b. An Analysis of the Internal and External Audit of the Organization
Porter’s Five Forces Analysis include: (Mathooko & Ogutu, 2015):
Threat of Substitute:
The threat of substitute for Walt Disney is lower:
 Due to popularity of the brand
 Differentiation in production
 Industry experience.
The company can however manage the threat of substitutes by:
 Stressing on becoming service oriented instead of being product oriented.
 Understanding core need of customers instead of what the consumer buys
 Increasing the cost of switching of the customers

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Threat of New Entrant:
The threat of new entrant is lower in case of The Walt Disney Company (E. Dobbs 2014):
 Due to massive investment
 Popularity in the market.
The company can tackle the threat of the new entrants by:
 Through innovation of newer products and services. Newer products not only bring in
newer customer but also provide an opportunity to the older customers in buying
products from the company.
 By establishing economies of scale that is able to lower fixed cost per unit.
 By spending money and building capacities on the research and the development. It is
also to be noted that new entrants finds it less likely in entering dynamic industry where
established players like The Walt Disney Company keeps defining standards at
regularized intervals. It reduces window of the extraordinary profits for newer firms
thereby discouraging the newer players in industry.
Rivalry amongst Existing Firms:
The rivalry amongst the existing firms in case of Walt Disney is higher since it has different
outlets for entertainment that includes Fox Studios, Themed parks and the Entertainment
Platforms (Cubbin, 2013).
The company can tackle intense rivalry amongst existing competitors by:
 Building sustainable differentiation