Porter’s Five Forces Analysis of Walt Disney

Running Head: WALT DISNEY 1
WALT DISNEY

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Table of Contents
Porter’s five forces........................................................................................................... 3
Bargaining power of the customers....................................................................................... 3
Bargaining power of the suppliers........................................................................................ 3
Threat of the Substitutes.................................................................................................... 4
Threat of New Entrants..................................................................................................... 4
Competitive rivalry.......................................................................................................... 4
Current objectives............................................................................................................ 5
Current strategies............................................................................................................. 5
Positioning analysis.......................................................................................................... 5
Recommendations............................................................................................................ 6
Balance score card........................................................................................................... 7
References..................................................................................................................... 9

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Porter’s five forces
Bargaining power of the customers
The purchasers of the media and the entertainment industry belong to the different groups of the
age and the diverse socio economic status. This diverse class lets the company to develop the
innovative services and the content to cater the needs of the customers. Since the Disney has the
highest brand loyalty the customers are even ready to pay higher than usual as they are aware of
the quality. Walt Disney has benefited a lot from this factor; therefore the prices off the tickets of
the theme park as well as the merchandise are higher. Hence it can be said that the bargaining
power of the customers are low.
Bargaining power of the suppliers
The bargaining power of suppliers of the Walt Disney Company is moderate in nature. Its
suppliers include enormous companies of the technological arena, media partners, the vendors
selling the raw materials to the manufacturers, all the influential suppliers that quote the barging

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power. Those influential names include the IMAX, Nokia, Hulu, Tumblr, Philips and ESPN.
These suppliers have the influence but of the moderate level on the Disney’s and the switching of
the suppliers are not as ice on the case as there is low availability of the same. The story is not
same for the small vendors. The bargaining power of the suppliers is moderate.
Threat of the Substitutes
The ability of the Walt Disney Company to understand the preferences of the customers creates a
platform that is readily available to the users and therefore it becomes hard for the customers to
switch. The market has the availability of the substitutes but at the moderate level and the
influence that s create by the Disney is comparatively higher in terms of its competitors. When it
comes to Disney it is already providing the different types of the services that the customers
became a loyal brand to them. The cartoon and the movie character have been used as a
competitive maneuver and some of the customers may shoe the price sensitivity yet overall the
competition is low (Williams, Weidenfeld & Butler, 2016).
Threat of New Entrants
New companies which are planning to enter the business require the huge amount of the capital
economies of the scale and competition consideration. The threat of the new entrants is low as
the investment cost for any new company will be huge, also due to the surge in the market it
makes difficult for the companies to invest. Apart from the infrastructure the skilled human
resource is also required along with the loyalty which takes time and the years to develop.
Setting up strong position in the media and the industry is not a reasonable choice for the new
company (Gigliotti, Russell & Gentry, 2016).