Strategic Management of Walt Disney World: SWOT, Porter's Five Forces, PESTLE, BCG and Ansoff Matrix Analysis

This presentation provides a detailed analysis of the strategic management of Walt Disney World, including SWOT, Porter's Five Forces, PESTLE, BCG and Ansoff Matrix. It also discusses the innovation of augmented reality in Disney Theme Parks and its promises.

Walt Disney World
Strategic Management

Swot Analysis:
 Strengths:
 The Disney Theme Park has an amazing brand value (Ms & Mary, 2015).
 The presence of the Disney Characters add to the primary attraction in the theme parks
 The recent acquisition of the Pixar and Miramax studios has added to the brand value of Walt Disney
theme parks
 Weaknesses:
 The huge size of the theme park makes it difficult to manage
 Finding the appropriate staff with the proper talent for the diverse works is always a challenge
 The diverse range of products and services makes it difficult for the management to focus on a specific
aspect for development.
 Opportunities:
 The concept of ‘imagineering’ which is the amalgamation of imagination and engineering seems promising
for the future of the theme park.
 New innovations can help to improve the attractions of the theme park.
 Expansion to new locations can draw more people to the theme park and increase the revenues.
 Threats:
 The primary threat consists of the other theme parks such as the Universal Studios Theme Parks, which
are equally attractive as the Disney Theme Parks.
 The increasing cost of operations make it hard for the park management to keep the prices of the services
low for everyone to afford.

Porter’s Five Forces:
 Competitive Rivalry:
 The Walt Disney Theme Park faces strong competitive rivalry from the other theme parks such as Universal
Studios. These theme parks offer similar services and products and are equally attractive in terms of
technology and uniqueness.
 Bargaining Power of the Customers:
 The customers have a strong bargaining power. This is due to the presence of the other theme parks which
have similar products (Petersen, 2017). Moreover, the customers always prefer products and services in an
affordable price. As the parks provide similar services, it is likely that the customers can switch their choices
on the basis of cheaper pricing of the services.
 Bargaining power of the Suppliers:
 In the modern scenario and industrial development, there are a number of suppliers, who can provide the
materials required by the Disney Theme Parks for continuing their services. Hence, the bargaining power of
the Suppliers are very low and does not affect the company as they can easily switch to new buyers in case
of inconvenience.
 Threat of Substitutes:
 Though Walt Disney Theme Parks face stiff competition from rivals they face very low threats from potential
substitutes. Theme parks such as Walt Disney, are unique by nature and the quality of the products and
services maintain a very high standard. Finding substitutes for them is difficult and hence the threat is also
minimum.
 Threat of New Entrants:
 The threat of new entrants in the theme park industry is comparatively low. This is because the investment
required for the new entrants will be huge to make the new parks in the level of the existing ones. Massive
investment and lack of strategic locations make it difficult for the new entrants to start new theme parks and
compete with the existing ones such as Walt Disney Theme Park.

PESTLE Analysis:
 Political Factors:
 The political factors play an important role in the business operations of Walt Disney Theme Parks. They are
located in various countries, which have different government policies. Adhering to those policies and making
amendments accordingly is the key to success in the business operations.
 Economic Factors:
 Economic Factors such as the financial condition of the state and its people play a very important role in the
running of the business. The Disney Theme Parks are primarily luxury lifestyle which demands the visitors to
spend money. If the GDP of the state is high, and the human development index of the area are high then it
becomes favourable for the theme parks as they will draw more customers.
 Technological Factors:
 Technological factors play an important factor for the running of the theme parks. New innovations and new
ideas aided with the technological advancements help the Walt Disney theme parks to introduce new
services which are the primary attractions for the visitors. Moreover, the use of technologies in the
management process helps in the efficient management of the operations.
 Legal Factors:
 The Walt Disney Theme Park should be aware of the legal technicalities in order to stay clear of legal
difficulties which can harm the reputation of the company. Moreover, the company should abide the state
laws and formulate its policies accordingly so as to avoid any kind of attrition.
 Environmental Factors:
 The Walt Disney theme park lies over large land spaces and uses several resources and energy for its
operations. The company should take a sustainable approach so as abide by the environmental laws. It
should reduce the pollution operate in an environmental friendly manner.

4 C’s of Walt Disney Theme Park:
 Competitors offerings
 The Walt Disney Theme Park faces strong competitive rivalry from the other theme parks such as Universal
Studios. These theme parks offer similar services and products and are equally attractive in terms of
technology and uniqueness
 Customer needs
 The customer requirements include different products in the theme park, which consists mainly of the joy
rides, entertainment shows, toys, merchandise, and lodging resorts.
 Company capabilities
 The target customers of Walt Disney have been the middle class people in order to attract large number of
population. However, the products price are based on the kind of products or services being offered. Such as
toys and joy rides are quite affordable, whereas staying at the resorts or attending entertainment shows are
quite expensive. The company has placed all the theme parks at strategic locations which are accessible by
the people easily.
 Context
 Walt Disney Theme Parks are one of the largest theme parks in the world and are he pioneers of several joy
rides and products that are found in the parks. Moreover, the primary strength of the theme park lies In the
strong brand value of Walt Disney which has been built over the decades and promises to provide some of
the best quality services to its visitors.

4 P’s of Walt Disney Theme Park:
 Product:
 The products in the theme park consists mainly of the joy rides, entertainment shows, toys,
merchandise, and lodging resorts.
 Price:
 The target customers of Walt Disney have been the middle class people in order to attract
large number of population. However, the products price are based on the kind of products or
services being offered. Such as toys and joy rides are quite affordable, whereas staying at
the resorts or attending entertainment shows are quite expensive.
 Place:
 Walt Disney theme parks are strategically located at some of the major destinations of the
world. These wide distribution helps to draw a large number of tourists and visitors. The
theme parks are considered to be the largest business sectors of Walt Disney.
 Promotion:
 Walt Disney’s brand value hardly needs any promotion due to its magnaniminity. However,
Walt Disney theme park actively promotes themselves in different medias such as televisions,
films, hoardings and posters.

BCG Matrix:  Stars:
 The star products consists of the joy
rides that the Walt Disney theme parks
provide. They attract a large number of
visitors every year and earns lots of
revenue.
 Cash Cows:
 The Walt Disney theme parks sells
various merchandise which comprise a
large part of the revenue generation for
the company.
 Question Marks:
 The Resorts in the Walt Disney theme
parks are luxurious suites which provide
the visitors rich holiday experience.
However, the price for these services are
very high and hence receive lower
number of visitors.
 Dogs:
 The interactive media in the Walt Disney
theme parks is a complimentary service
and hence doesn’t generate much
revenue.
Stars:
Joy Rides
Question
Marks:
Resorts
Cash Cows:
Merchandis
e
Dogs:
Interactive
Media
Market
growth
rate
Relative Market Share

Ansoff Matrix:
 Market Penetration:
 Walt Disney can venture into new markets by
acquisition of already established theme parks.
 New Products:
 Walt Disney can diversify the market demands
and introduce new products
 This can help them to attract new customers
and increase the market share.
 This can also help in increasing the brand value
of the company.
 Market Development
 The Walt Disney Theme Park can look towards
newer investments in new properties.
 This can help them to grow in new markets and
gain new visitors.
 This can help them to generate more revenue
by the terms of market growth and development.

New Innovation:
 Augmented Reality for Theme Parks
• Augmented Reality is the future of entertainment in the Disney Theme Parks
• The Automated Calibration and Procam Tools have brought a new experience in the
entertainment sector in the theme park
• The augmented reality will enable the audience to enjoy real life animation
experiences. The iconic Disney movies such as the Pirates of the Caribbean can
come to life through animation and provide unique experiences to the visitors at the
Walt Disney theme park.

History of the innovation of
Augmented Reality in Disney
Theme Parks
• The Augmented Reality has been in the developmental stage for a long period of
time.
• The early examples of animations provided the way for the development of the
technologically advanced augmented reality. The animations attempted to bring the
characters to life.
• The complex animation involved the creation of several new animation techniques
with perfection. The Procam Toolbox first attempted to create flawless animation with
new and advanced techniques.
• The primary requirement for the development of the technology required the
imagineers of the Walt Disney to properly utilize the available tools and enhance
them over the years.

Usefulness of Augmented Reality:
• The augmented reality scenario gives an enhanced entertainment
experience which provides better satisfaction to the tourists and visitors
• The augmented reality can make it possible to work in different surfaces
regardless of the quality of the surface.
• The technology guarantees to produce flawless products even after the
failure of the projection system. Instant repairing and seamless production
is the key to its success.
• These technologies can align itself to any technical platforms and works
independently with any software or hardware.
• This easiness helps the artists to easily use the technology for the creation
of better work and more advanced animations.

Efficiency of Augmented Reality:
• The Augmented Reality projection can work upon different projection
services making it suitable to operate in any suitable position.
• The Procam tools are used to work in different types of projection mediums
ranging from flat screens to pirate ships.
• The advanced system can use the geometry of the surface and reconstruct
the images for projection. This can be done by the strategic positioning of
the cameras and the light sources.
• As the technology advances, many impossible images such as projection
on rough surfaces and glass becomes possible through Procam.
• The images are aligned by the creation of smooth projection, technically
known as Parametric Calibration, over rough surfaces.

Specific Uses of Augmented
Reality:
• Modern films and TV shows require the use of magnificent computer
graphics which are sequentially arranged according to the 3D scenes
• This process helped in the reduction of the noisy granules to HD images
and enhanced the quality of the vision.
• The advanced augmented reality system has been able to enhance the
noise free picture quality of Pixar’s animated movie, ‘Cars 3’. The style and
vision used in this movie is revolutionary and one of its kind.
• The new technology is an enhancement of the existing animation methods
which were not able to completely de-noise the animated pictures and left
granular results. However, the filters used in the new technology allows
more light rays and enhances the image quality.

Promises of the new innovation:
• It promises to provide state of the art experience for the visitors.
• It will give the Disney theme parks an edge over its competitors.
• It will help to draw more visitors due to the unique experience that it
promises to provide
• The new augmented reality will make the process of entertainment easier
for the artists

References:
 Petersen, P. (2017). The Business Model of the Walt Disney Company.
 Ms, W., & Mary, R. (2015). The Magic of the Mouse: An Exploration of
Brand Personality in The Walt Disney Company.