Strategic Analysis of Walt Disney: Porter's Five Forces and Objectives

This report offers a comprehensive analysis of the Walt Disney Company, examining its competitive landscape through Porter's Five Forces, including the bargaining power of customers and suppliers, the threat of substitutes and new entrants, and competitive rivalry. It outlines Disney's current objectives, which center on becoming a leading entertainment and information provider, and its strategies, encompassing product differentiation and product development for growth. The report also includes a positioning analysis and provides recommendations for future strategies, such as diversification, reactive technology adoption, and improved financial planning. A balance scorecard with financial, customer, internal business process, and learning and growth perspectives, with specific objectives, targets, and initiatives, is also presented to measure and monitor the company's performance, providing a roadmap for future growth and success in the media and entertainment industry. The report concludes with a list of references used for research and analysis.

Running Head: WALT DISNEY 1
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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).

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Competitive rivalry
Due to many companies prevailing in the external market it creates a sense of strong competition
amongst The Walt Disney Company. For example those companies that are engaging in
producing the high quality animated films are competing aggressively against Disney’s Pixar
Animation Studios. This scenario typically makes the industry environment more competitive.
Further the moderate differentiation is also one of the parts that give a nice punch to the
competition. The leading competitor of the company is 21st century, FOX, CBS and time Warner
Company that continue to rise in terms of the profitability and the market share (Rosenberg,
Caldart & Seager, 2017).
Current objectives
The current objective of the WALT DISNEY is to become the leading provider of the
entertainment and information with the assistance of the Portfolio of its brand though different
content service and services. Moreover the company also focuses on championing the happiness
of the kids and the families. The overall goal of the company is to serve the customers with the
high level and the innovative services (Gamayanto, Sundjaja & Sukamto, 2018).
Current strategies
The current strategies of the company are bifurcated into two major strategies namely the
strategy for the growth and the strategy for the competitive advantage.

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Strategy used by the WALT Disney For the competitive advantage is the product differentiation
as its generic strategy for each of the market segment. The different teams are incorporating for
the uniqueness of the entertainment it the company’s theme parks and the resorts (Team, Traffis,
2015).
The strategy for the growth adopted by the WALT DISNEY company is the product
development which the primary strategy where the company intends to provide more products
and the services, market penetration the secondary where the company using the extensive public
selling and the advertising methods to generate more an more revenue and lastly the
development of the market and the diversification, through establishment of the cruise line, the
company also entered into the business of tourism and hospitality (Jiménez-Zarco, González-
González & González-Rodrigo, 2016).
Positioning analysis
Being the largest media conglomerate the, the Walt Disney Company uses the value based brand
positioning strategy to establish its name in the industry of the entertainment and media. With the
help of this strategy the company is able to grab the market share of 251.32 billion (Hinterhuber,
2018).
Recommendations
From the above analysis it can be concluded that overall company is performing quite impressive
however there are certain areas where the new strategies must be employed to gain the better
qualitative as well as quantitative results.

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The company shall focus on the extensive diversification as the brand name is already settled.
The major example of this would be the Disneyland theme parks to have a reactive rather than
the aggressive approach while adopting the new technologies. More than 30% of the Disney’s
valuation accounts form the hotels and theme parks.
The poor financing planning is again the high alert for the company due to the huge cash flow
and the collection of their accounts and therefore the company must prepare the budgets and
reconcile the balances on the monthly basis to avoid unnecessary losses.
The lack of marketing and promotion could lead to the slow voice towards the customers. Hence
it is advised to the company to engage itself in digital marketing as well as virtual selling. This
would enhance the capacity and the number of the customers both at the same time (Felin &
Zenger, 2018).

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Balance score card
Perspectives Objectives Targets Initiative Measure
Financial
perspective
Focus on the assets of
the company.
Target the operating
efficiency.
Review the annual
revenue.
New investors as well
as the shareholders.
The assets shall be
increased by 40% by
2020.
The target set by the
company is to
increase the number
of the subscribers by
1 million by the end
of 2019.
The annual revenue
must be increased by
10%.
The system was
centralized.
Provisions were
created.
Investments were
made it the
channels and the
theme parks.
Cutting of
unnecessary
expenses.
Increase in the
assets of the
company as
seen from the
annual report.
Improve the
operating
efficiency ratio
by 1.73 times.
Growth of the
annual revenue
More and more
potential
investors.
Customer
Perspective
Increase the
satisfaction of the
shareholders.
Grab the customers
form different age
group.
To create the loyal
customers and the
satisfied ones.
Improving the after
sale services.
Develop the
innovative product.
Use the digital
content and develop
the new application
of its own.
Retain more than
30% of the loyal
customers.
Aftersales services
(Raine & Jones
2017).
Making a
worldwide
suggestion box to
record the
queries.
Provide the
rewards or the
membership fee
discounts by 5%.
Make a Disney
club for the
Customers.
Record the
statistical
response on
monthly basis
Accommodation
of the
stakeholders
needs.
Number of the
new customers
to be recorded
each and every
time.
The review of
the old
customers is
available on the
website of the
company
Internal
business
process
Perspective
Retaining the skill full
employees.
Enhancing the internal
process of the
management.
Make sound
administration systems
Regeneration of the
employees
The men to women
ratio shall be made
equal.
The new internal;
control systems shall
be installed such as
ERP, Oracle, SAP.
The delegation of
the duties to the
functional level of
the management.
The women were
given, 80% shares
in the company.
The auditing of
the company is
done to record the
overall
performance of
the Walt Disney.
Making the
administration
The re
contraction of
the skill and the
employees.
The
accountability
of the
administration
system and the
upgrading of the
worker’s

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Reward the
employees to
increase the
productivity.
report.
Recruiting and up
gradation of the
old workers
position.
Learning and
Growth
Maintain the technical
as well as the
sustainable aspect.
Empower the human
resource management.
Motivating the
employees to increase
the productivity.
Define the healthy
relationships among the
customers as well as
the management.
Attaining the ISO
certificate.
Providing the job
certification to the
employees.
All employees must
be entailed to
participate and
provide the
opinions.
Standardize the
operational
process’
Provide the job
training process
and the practical
experience to
achieve the
targets.
Making Intimate
Meeting and
vacation program
(Nielsen &
Nielsen 2018).
The company is
eligible for the
technical
standard.
Employee’s
skill and
productivity
increased by
20%.
The
relationships are
strengthened.

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References
Felin, T., & Zenger, T. (2018). What Sets Breakthrough Strategies Apart. MIT Sloan
Management Review, 59(2), 86-88.
Gamayanto, I., Sundjaja, A. M., & Sukamto, T. (2018). The Design of Innovative Leadership
Systems Inside University Using Disneyland Concepts to Face Globalization. Journal of
Economics and Management Sciences, 1(1), p156-p156.
Gigliotti, R., Russell, A., & Gentry, R. J. (2016). It's a small world: Worldwide declining
attendance and disney theme parks. SAGE Publications: SAGE Business Cases
Originals.
Hinterhuber, A. (2018). Implementing pricing strategies.
Jiménez-Zarco, A. I., González-González, I., & González-Rodrigo, E. (2016). Old strategies for
positioning in a new market segment: Co-branding and celebrity endorsement in the
development of new mobile apps for tweens. In Encyclopedia of e-commerce
development, implementation, and management (pp. 611-624). IGI Global.
Nielsen, E. H., & Nielsen, S. (2018). System Dynamics Modeling, its concept of causality and
particular relevance for providing the Balanced Scorecard thinking with a dynamic
analytical framework.
Rainey, J., & Jones, D. L. (2017). A Performance Scorecard for Parks and Recreation.
Rosenberg, M., Caldart, A., & Seager, P. H. (2017). Strategy: The Soul of Your Business.
In Managing Media Businesses(pp. 15-35). Palgrave Macmillan, Cham.
Team, Traffis, (2015). Three Things Which Are Key To Disney's Growth In Future. Retrieved
from https://www.forbes.com/sites/greatspeculations/2015/11/27/three-things-which-are-
key-to-disneys-growth-in-future/#490b49c6551d
Williams, A. M., Weidenfeld, A., & Butler, R. (2016). Competition in the visitor attraction
sector. In Visitor Attractions and Events (pp. 124-142). Routledge.

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