Strategic Management of Disney

This article discusses the strategic management of Disney, including their operating landscape, Porter's Five Forces analysis, business level analysis, and strategic intent. It explores how Disney has become a leading multinational corporation in the entertainment industry through their innovative strategies and acquisitions. The article also highlights Disney's generic strategy for competitive advantage and their intensive strategies for growth.

RUNNING HEAD: Strategic Management 0
Disney
Strategic Management
(Student Name)
1/19/2019

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Table of Contents
Introduction................................................................................................................................2
Operating Landscape of Disney.................................................................................................2
Porters Five Forces Analysis......................................................................................................2
Business Level Analysis............................................................................................................4
Generic Strategy for competitive advantage..........................................................................4
Intensive strategies for growth...............................................................................................4
Disney Strategic Intent...............................................................................................................5
Conclusion..................................................................................................................................5
References..................................................................................................................................6

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Introduction
Multinational Corporation is considered as a huge corporation with a huge plant or former
direct investment in numerous overseas countries (Young, C. and Ghoshal, 2016). The
multinational companies have a power that influences the foreign governments (Detomasi,
2015). One of the multinational companies Disneyland attracts plenty of tourists as well as
other individuals from around the globe that divide the traditional character of advertising as
well as creates a kind of new ode for marketing (Mannheim, 2016). It is leading diversifies
international family entertainment as well as media enterprise with five business segments,
media networks, parks and resorts, consumers products, studio entertainment as well as
interactive media (Hanson, Hitt and Robert, 2014) . The Disney pays attention to their
consumers in an effective manner as wee as the consumers of Disney promote their
experience on effective marketing (Sandlin and Garlen, 2016).
In the following part, there will be a detailed discussion on the Disney in which there will
mainly focus on their strategies adopted by them and the overall performance of the company
through analysis of their business strategies that made them unique in the market and made
them as a successful company at the global level.
Operating Landscape of Disney
The company was founded in the year 1923 in which they are first known as The Disney
Brother Studio. The initial cartoon of Mickey Mouse in Disney was introduced in 1928. In
the year of 1955, the company has launched the place which is known as Disney Land that
became one of the best as well as leading places where the audiences can able to see different
cartoon characters. In the year 1983, Disney has opened their first international they park in
Japan that also became one of the destination places for the people (Griffin, Harding and

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Learmonth, 2017). Disney is one of the second leading media as well as Entertainment
Corporation at global level subsequent to Time Warner. But in the recent, it has turn into one
of the largest Hollywood studios as well as introduced 11 theme parks along with numerous
TV systems counting the American Broadcasting Company (ABC) (Wasko, 2016). Around
the world, Disney has extended their business at a global level. Among which apiece of them
is Disneyland in California, Disneyland in Paris, Disneyland in Hong Kong, Disneyland in
Orland, as well as Disneyland in Tokyo. The theme of the Disney is based on colorful
animation as well as figures of a cartoon that appeal huge persons to approach and take
pleasure in their lines in such innovative and new theme parks. While, Disneyland is not the
lead the way of the theme park they acquire achievement in the business globe for the guests
that bring a huge of prosperity as well as extend their ethnicity overseas to each bend such
contemporary world. The theme parks, as well as resorts in California, give them a huge
amount of profits, as well as their venue, is loved by the audience at an international level.
The driven force of the entire company is the motion picture as well as animated cartoons that
are managed by the Touchstones Pixar, Walt Disney, Miramax, as well as Buena Vista
(Mitrasinovic, 2016).
Porters Five Forces Analysis
There are porter five forces analyses of Disney Theme park which are explained in below
points:
New Entrants Threat
While the corporation was proficient to discover a remarkable position within the business,
the doorway barrier is very high. Disney does not face any severe risk from their new entrant
company’s due to the reason of existence of high obstacles in the industry. The company may
face the competition mainly form the media as well as pursuit organizations. However, it do

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not contain such great impact. Disney supplies numerous types of different services that are
handling with the kin amusement as well as theme parks. The huge amount of investment in
the advertisement, as well as high promotional cost, resists the other companies to think about
entering in such competition with such a leading company.
Rivalry among existing companies
The Disney is considered as one of the leading company, therefore there are only a few
competitors in the market who are competing with Disney, or dream works of the other
company that competing with the Disney. The Time Warner, as well as Cumulus Media, is
also considered as leading companies at a global level that has super huge power in the
market. Nevertheless, it is the fact that the exit barriers of the company are extremely
elevated. Disney faces great challenegs in the market such as high rate of rivalry from their
competitors due to the reason of alteration in the tactics of companies related to media for
earning the bigger portion of the pie (Gigliotti, Russell and Gentry, 2016).
Threat of Substitute
The threat of substitute is very low for the industry in which Disney operates, as in the market
there are small numbers of companies that are delivering as well as presenting similar
products. The major efforts that the company put in is to distinguishing their products as well
as services from other companies which helped them in securing the great share in the market
in a more effective manner. The consumer’s of the company are loyal as well as faithful that
made them resist changing their preference to other companies.
Bargaining power of the consumers
The consumers play a vital role in the industry where the Disney operates. The needs, as well
as the preferences of the consumers, affect the price and quality of the product. Therefore, the

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bargaining power of the consumers is high due to the reason of similar products introduced
by the other companies as well. The consumers have a power indeed while huge number
consumers are required to build the operations of the business to dash effortlessly. Such as if
the cost of the scrupulous abode video is high then the consumers might resist sending their
money needed to purchase the products.
Bargaining Power of Suppliers
The bargaining power of the suppliers in such industry is very low due to the reason of
unique nature of products of the company as assessed in focusing on maintaining good
relations with their suppliers that make their bargaining power low in such industry.
Moreover, the dimension of the business have a possibility that they have a huge significance
definitely for which Disney creates a enslavement connection in the business by ordering
bulk amount of innovative products from the different and limited suppliers (Ricart and Rey,
2017).
Business Level Analysis
There are detailed business level analyses of Disney Theme park that are explained in below
points:
Generic Strategy for competitive advantage
The company use differentiation of product as their general tactic for the cut-throat benefit
the Michael Porters models represent that such marketing approach invcludes the innovative
goods that is being offered to numerous segments of market such as the company propose
their entertainments goods to specifically very individuals at the global level in which they
mainly stress on the programming of family-oriented. In such a competitive generic strategy,
the eminence, as well as uniqueness through innovation, would able to differentiate the

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products of Disney from their competitors (Mukerjee, 2016). The Imagineering Research &
Development department of Disney has dedicated team members that certify the
distinctiveness of amusement experience in the theme park & resorts of Disney. The
concentrated development approaches of the company as we; as their connected planned
purposes are functional along with such general approach that mainly focuses on the separate
spirited advantages to sustain as well as handle the expansion of the business. There are
certain objectives used in generic strategies by the company which is explained in below
points:
 The generic competitive strategy of Disney mainly pushes for the objective of the
product-focused strategic objective which is required for supporting the development
of products efforts to differentiate with their competitors.
 The purpose is to fortify the spirited advantages through the process of marketing
approach that strengthen the individuality of the product of Disney (Krishnaswamy,
2017).
Concentrated strategies for Development
Development of Product
The main growth strategy of Disney is the development of the product. Such strategies
majorly involved the offering of new products in the current or existing market by the
company. For example, the company has introduced new entertainment products in the
market to generate more profits from their targeted consumers at a global level. The company
also focused on the importance of the organizational structure of that provide the
organizational design to efficiently manage the development of the products. The corporate
level strategy of Disney is majorly based on horizontal as well as a sprinkled unceremonious
approach of management.

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Market Penetration
The company aggressively advertise their products to increase their revenues from the
products released in the global entertainment industry. The strong brand based on the
differentiation generic strategies generates the competitive advantage to attract the consumers
towards their products as well as manage the expectation of the consumers.
Market Development
The company has achieved their growth by expanding their business in a new market which
includes during Disneyland amusement park the company would able to capture the regional
market. The main strategic objective in the development of the market is to utilize the
discrimination general spirited tactic to effectively bring in the products of the business into
the new-fangled markets (Grant, 2016).
Diversification
Disney adopted the strategy of diversification, as a intensive strategy through supporting
manner for the expansion of the business. The company has extended their business by
entering a new market with new products. Such as, the company has expanded their business
in the market of cruise line of the hospitality and tourism industry that provide new ways as
well as opportunities to the company to increase their existence and revenue from other
sectors (Moore and O'Sullivan, 2017).
Disney Strategic Intent
Disney is one of leading company and has expanded their business in different sectors. The
company has acquired various companies to lead in the global market.

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 One of the companies that acquired by Disney is Pixar. In the year of 2006, Disney
has announced to buy Pixar for approximately USD $ 7.4 billion in an all-stock deal.
The acquisition was completed on May 5, 2006. Steve Jobs has the major shares of
that company with 50.1% considered as the largest shareholder and after which given
him with 7% and a new seat on their boards of directors (Junni et al., 2015).
 In the year of 2017, the company has announced to acquire 21st Century Fox with
including the Twentieth Century Fox Film as well as Television studios along with
cable and international businesses of TV for approximately USD$ 52.4 billion in
stock such acquisition allow the company to create more appealing content as well as
would able to build more direct relationship with the consumers around the world
(Jin, 2017).
Conclusion
From the above analysis, the conclusion can be done that, Disney is one of the leading
multinational companies that has expanded their business in a variety of sectors. The
company has theme parks in different countries that increase their existence at a global level.
Moreover, the company has also entertainment studio and channels through which they
would able to entertain the consumers in a more effective manner. Disney represents them
through different cartoon charters that made them unique from other competitors. The
competition in such industry is high due to some other leading companies; still, the company
would able to make their existence in a unique manner through their innovative strategies.
The company adopted the strategy of product development and differentiation to make them
unique from their competitors. The company has also adopted different strategies for their
intensive growth in the market. Furthermore, the company has acquired different companies

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to make them stronger in the market at a global level. Therefore, Disney leads in the market
in a more effective manner at a global level.

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References
Detomasi, D. (2015) The multinational corporation as a political actor:‘varieties of
capitalism’revisited. Journal of Business Ethics, 128(3), pp.685-700.
Gigliotti, R., Russell, A. and Gentry, R.J. (2016) It's a small world: Worldwide declining
attendance and disney theme parks. New York: Sage.
Grant, R.M. (2016) Contemporary strategy analysis: Text and cases edition. London: John
Wiley & Sons.
Griffin, M., Harding, N. and Learmonth, M. 92017) Whistle while you work? Disney
animation, organizational readiness and gendered subjugation. Organization Studies, 38(7),
pp.869-894.
Jin, D.Y. (2017.) The Deconverging Convergence of the Global Communication Industries in
the Twenty-First Century. Media Convergence and Deconvergence, pp.199-216.
Junni, P., Sarala, R.M., Tarba, S.Y. and Weber, Y. (2015) The role of strategic agility in
acquisitions. British Journal of Management, 26(4), pp.596-616.
Krishnaswamy, S. (2017) Sources of Sustainable competitive Advantage: A Study & Industry
Outlook. St. Theresa Journal of Humanities and Social Sciences, 3(1).
Mannheim, S. (2016) Walt Disney and the quest for community. London: Routledge.
Mitrasinovic, M. (2016) Total landscape, theme parks, public space. London: Routledge.
Moore, E.E. and O'Sullivan (2017) Landscape and the Environment in Hollywood Film. New
Yok: Palgrave Macmillan.

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Mukerjee, K. (2016) Factors That Contribute Towards Competitive Advantage: A Conceptual
Analysis. IUP J. Bus. Strat, 13(1), pp.26-39.
Ricart, J.E. and Rey, C. (2017) Strategising for the Future. The European Business Review,
pp.7-11.
Sandlin, J.A. and Garlen, J.C. eds. (2016) Disney, culture, and curriculum. London:
Routledge.
Wasko, J. (2016) The Walt Disney Company. In Global Media Giants (pp. 25-39). London:
Routledge.
Young, C. and Ghoshal, S. (2016) Organization theory and the multinational corporation.
New York: Springer.
Hanson, D., Hitt, A. M., and Robert E. (2014) Strategic Management: Competitive and
Globalization. Australia: Cengage