Issues Faced by Walt Disney in the Entertainment Industry

Running head: MANAGEMENT
Management
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Author Note

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MANAGEMENT
Table of Contents
Introduction......................................................................................................................................2
Internal and external issues..............................................................................................................2
Competition.....................................................................................................................................3
Future outlook..................................................................................................................................4
Implementation of tools for business success..................................................................................4
Bibliography....................................................................................................................................5

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Introduction
The assignment focuses on the issues that are faced by Walt Disney in its business while
trying to maintain its composure in the entertainment industry. Walt Disney is the biggest mass
media conglomerate that provides entertainment to the viewers on a large scale
(Thewaltdisneycompany 2019). After the analysis of the strengths and weakness of the company
the internal issues that Walt Disney can face can be taken into account.
At the same time, based on the opportunities and threats, the external issues of the
company can be analysed. These issues can help in identifying the potential that the company
possess in the entertainment sector. The assignment also tries to identify the competition that is
faced by Walt Disney along with the future outlook of the company. The implementation of tools
required for gaining success in business is also analysed so that Walt Disney can continue with
the reputation it has and look for improvements.
Internal and external issues
According to Shaw and Barry (2015), the analysis of the internal and external issues can
help in understanding the threats that are involved with the company. In order to analyse the
internal issue, it is necessary to identify the weakness that Walt Disney possess. From the SWOT
analysis conducted earlier, it can be seen that one of the biggest internal issue of the company is
that it has lost its subscription with ESPN and as a result have lost multiple domestic television
networks. This can be considered as a huge disadvantage for the profit making purpose of the
company as with the loss of subscription, people started to view other shows which resulted in
the change of taste from the shows usually telecasted in Walt Disney.

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MANAGEMENT
At the same time, the major external issue of the company is the fact that the investment
made may not be effective in attracting and developing the resorts or parks associated with the
company. This can have a negative impact in the revenue of the company as the failure to meet
the demands of the customers can provide Walt Disney with the disadvantage of attracting
audience (Schaltegger & Burritt, 2017). The lack of ability to attract the audience can cause Walt
Disney to lose out against the competitors, particularly to the entertainment networks that have
entered the market in recent times. In this regard, an analysis can be made about the competition
that the company have to face within the entertainment sector.
Competition
In the recent years, Walt Disney has faced competition from various entertainment
industries. Some of the entertainment companies that provide stiff competition to Walt Disney
include Viacom, Time Warner, 21st Century Fox, Sony, CBS and Comcast. The main
competition that is provided by these companies is in the field of TV, cable and other media
markets. As stated by Laudon and Traver (2016) the growth rate of media in the network
distribution channel can be considered as competitive mainly because of the change of taste in
the mind of the people. Apart from the TV channels, Walt Disney also faces competition from
sports market.
The company featured well with the sports channel ESPN which provided about 24% of
the total revenue it earned. However, the offers related to binding packages have depleted the
popularity of the company. In the case of theme park market, Walt Disney faces competition
from Six Flags Entertainment, Cedar Fair and Universal Studios (Schaltegger & Burritt, 2017).
The competition in the theme park market has increased with the development of Harry Potter