Walt Disney Company: A SWOT Analysis and Strategic Recommendations

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Research and Analysis paper – Part II
RESEARCH & ANALYSIS PAPER –
PART II
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Research and Analysis paper – Part II
Summary
Walt Disney was founded in the year 1923 by Walter Disney with headquarters in California.
The company is dealing in the broadcasting, and cable industry with different business segments
includes media networks, parks and resorts, studio entertainment, and consumer products
&interactive media. Disney Corporation is providing ownership of multiple cables, and
broadcast TV network includes Disney Channel, ABC, freeform, or ESPN (The Walt Disney
Company, 2019). Walt Disney is still considered as a major competitive company in the field of
the entertainment industry.
The reason for this success is an innovative idea, a variety of products with strong studio
ownership with consistency. All these are significant reasons which enable a business to lead the
entertainment industry most. They are providing some fun activities as well to their clients to
maximise their experience and maintain the level of competitiveness in the ground.
The other ground of Walt Disney includes some amusement parks and resorts like Disneyland
resorts, The Walt Disney World, Disney Resort, or the Aulani Disney Resort and Spa in Hawaii.
Some other aspects of the Disney include Disney Cruise Line, which has helped Disney
differentiate from its main competitor, Universal Studios.
This study is focused on Walt Disney which covers different background and ideas. The major
motive of the paper will be revolving around SWOT analysis for a business to anticipate growth
and development. Environment constraints will be discussed as well as stakeholder
determination. Organisation structure will be indicated with control and recommendations. All

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Research and Analysis paper – Part II
factors are helpful to make a business successful and remain competitive in context as compared
with others.
S.W.O.T. – Formulating Strategies
A SWOT analysis is a tool to assess the competencies of management with internal and external
assessment. A business is required to focus on SWOT analysis so that they can accomplish
desired goals and targets. Walt Disney is expected to organise a SWOT analysis so that they can
evaluate their perspective of internal and external variability (De Groote, 2011, p.50). With the
assistance of SWOT analysis, a business can structure themselves different from their rivalries.
Below is a SWOT analysis which assists Walt Disney to manage their work effectively and
compete with their major competitors properly:
 Strength: The significant advantage of a company is a broad area network of cable
operations. They have a stable and strong brand portfolio with a distinct entertainment
business attribute for globalised audiences. Their portfolio has the potential to spread and
make their clients satisfied. Walt Disney has a good image and popularity which enable
them to compete with others and ascertain profitable outcome for long term prosperity.
 Weakness: A major area of improvement is the presence in all over the world. Disney
only concentrates operations in the United States and Canada with weak revenue and
profit due to limited presence. They are not focusing on tap into a new international
market world as they only explore in the pre-determined area. Diversification and growth
now become a major concern as Disney need to identify a new area of launch with skills
and ability to facilitate operations in the new market world.

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Research and Analysis paper – Part II
 Opportunities: With the expansion of the entertainment market, Walt Disney can assess
more growth opportunities which make them different from others. The company is still
trying to penetrate a new market world whereas many competitors already become
successful. Thus, an expansion is essential for a business which further boosts and
enhances the sales and revenue as well as enables a company to target more customers.
Social standard steps are essential to frame to bring positive outcome with social
initiatives with significant custom
 Threats: Increase in competition is still a significant problem leading to define for
Disney. One of a significant threat for Disney is Universal Studio as they target audiences
of Disney and cover global network area. Piracy is another considered threat for Disney
on which company senior management need to initiate some effective steps.
Environmental Constraints
Constraints are the general barrier, and obstacles identify in front of a company like Disney.
Disney is required to work on the evaluation of environment constraints so that association
becomes successful. Disney is needed to evaluate major aspects while expanding operations in
some other countries. It includes political attribute, environment factor and determinants like
technology, society, economy and legal consideration.
 Political: Disney is trying to connect with other countries government as well. They have
a good relationship with the US and Canadian authority. Now, they are trying to cover
China, Korea, and India with some other for constant growth and development. They are
drafting business level strategies for a more appropriate political relationship.

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Research and Analysis paper – Part II
 Economical: Disney is currently trying to explore their activities in different countries
with the use of product development and market development strategies. Thus, they are
evaluating the economic conditions of different countries with new parks, themes
amusement’s etc. with clear anticipation of economic background like employment rate,
inflation, depression.
 Social: Social management is essential for Disney for which they need to determine the
VRIO framework. It has helped Disney to make its products and services different from
others with innovative ideas to reach society.
 Technology: Disney is already dealing in the technological ground where they use
varieties of technology. They are using social media, digital background as well as
personal application to promote their channels and other services.
 Environmental: Disney is already taking place in different environment associated
activities. They are contributing a part of income for environment welfare under CSR
plan. They are planting trees and provide a social message which further assists in
improving the social image and enhancing the goodwill of a company.
 Legal: Disney is following all legal aspects and regulations like Data Protection, Health
and Safety for their employee’s welfare.
Stakeholders
Stakeholders are an essential part of a business to encourage and manage sales of a company and
facilitate quality. Disney has a certain group of customers which enable a firm to compete with
others. Following are the stakeholders of Disney with their importance and priority and impact of
each one of them on business:

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Research and Analysis paper – Part II
 Customers: They are on a high priority list of Disney and describe most influence on
business. They are essential for the accomplishment of targets and business goals. The
impact is considered in terms of positive and negative as per the durability of business.
 Employees: Staff and work associates are major groups which enable a firm to become
successful. They are considered under moderate priority list with a positive impact on
business while working.
Organisational Structure and Design
(Figure 1: THE WALT DISNEY COMPANY, 2018)
(Wordpress, 2018)
The provided chart is helpful to indicate the organisation structure and hierarchy of Disney. It
includes different people name and their work. Every division has its pattern of work and not
leads to interpreting in other divisions (THE WALT DISNEY COMPANY, 2019). A
departmentalisation is a significant approach using in Disney with the code of command. CEO

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Research and Analysis paper – Part II
ultimately deals with various aspects of the business so that they can manage a competitive
position. Every department has its specification which enables a firm to become successful and
different from others. Consumer products range, Walt Disney attractions and Disney studio all
are required under modification so that association can easily compete with their rivalries.
Motivating Employees
A significant factor which signifies and define encourage of work is motivation. It is essential for
a company to use motivation aspects for its employees to enhance the sales and productivity of a
company (Elnaga and Imran, 2014, p.40). For motivating employees, Disney is using the
Maslow theory of motivation. It is helpful for a company to become aware of the needs and
wishes of an individual and provide them with relevant aspects of satisfaction. This theory will
be applied in work with appropriate anticipation of every single candidate. Management of
Disney needs to satisfy employees by providing job security, remuneration and fulfil the basic
requirement. It is essential for Disney to anticipate such a framework to encourage the team and
motivate them towards target accomplishment. Maslow theory of motivation is one of the best
ways to accomplish targets.
Recommendations
Disney is facing some issues and problems with the increase in competition. It is essential to
determine some steps and aspects to deal with problems. Certain recommendations have been
defined to deal with issues that align in the context of Disney. The first thing on which Disney is
required to work refers to product development. Disney needs to develop its range of products
and anticipate new market world. Along with this, they are required to use digital background
more properly to reach globalised customers for enhancement of sales and revenue of Disney.

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Research and Analysis paper – Part II
Controls and Recommendations
The checklist is helpful to assess and monitor the progress of business plans and activities. The
list is helpful to determine new modes as well through which Disney can deal with distinct
modifications. Feedback control is also another best way to monitor the activities from the
perspective of employees. Disney leaders are using some best way to facilitate activities
properly. They walk around on the floor for management which further motivates people and
resolve complex problems with good leadership skill and attribute. Disney will get information
about target accomplishment with a checklist which describes a tick mark on every single task.
All these are some modes of control and monitoring of performance at Disney.

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Research and Analysis paper – Part II
References
De Groote, P. (2011). The globalisation of commercial theme parks Case: the Walt Disney
Company. ABSTRACT: Applied Studies in Agribusiness and Commerce, 5(1033-2016-
84139), 21.
Elnaga, A. A., & Imran, A. (2014). The impact of employee empowerment on job satisfaction: a
theoretical study. American Journal of Research Communication, 2(1), 13-26.
The Walt Disney Company. (2019). About the Walt Disney Company. Retrieved from:
https://www.thewaltdisneycompany.com/about/.
THE WALT DISNEY COMPANY. (2019). Wordpress. Retrieved from:
https://ecozipblog.wordpress.com/2016/03/09/the-walt-disney-company-transformation-
from-mouse-to-media-giant/.