Strategic Marketing Management: Analyzing Walt Disney's Strategies

This report provides an in-depth analysis of The Walt Disney Company's strategic marketing management, employing tools such as Porter's Five Forces and PESTEL analysis to assess the external and internal environment. It identifies key competitors like Time Warner Inc. and Comcast, comparing their revenue growth and market capitalization. The report examines Disney's business-level strategies, highlighting its differentiation strategy for competitive advantage in the television sector, and explores its strategic intent to innovate and differentiate its content. The analysis covers market penetration and product development as intensive growth strategies, emphasizing Disney's focus on quality and customer loyalty. This comprehensive evaluation offers insights into Disney's strategic positioning and competitive dynamics within the entertainment industry. Desklib provides a platform for students to access similar solved assignments and study resources.

Running head: STRATEGIC MARKETING MANAGEMENT
Strategic Marketing Management
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Executive Summary
The report has helped in the overall internal and external analysis of Walt Disney Company
with the help of the Porter’s Five Forces Model Analysis along with the PESTEL analysis.
The different kinds of competitors in the market has been identified in which the revenue and
the profitability rate have been introduced which has helped in managing the overall
effectiveness of the organization effectively. Moreover, the different types of the strategic
intents along with the business strategic analysis have been done for Disney in which this has
been noticed that the company applies the differentiation strategy which has assisted in
managing the overall effectiveness of the firm.

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Table of Contents
Introduction................................................................................................................................3
1. A background to the study.....................................................................................................3
2. External Environmental Analysis of Walt Disney.................................................................3
3. Analysis of Key Competitors and Porter’s Five Forces Model Analysis..............................5
3. Business Level Analysis of Walt Disney Film......................................................................8
4. Strategic Intent of Walt Disney..............................................................................................9
5. Conclusion............................................................................................................................10
References................................................................................................................................12

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Introduction
The report helps in the overall analysis of the Disney Company in which the entire
external environmental analysis is required to be performed in an efficient manner.
Furthermore, the different kinds of key competitors along with the five forces analysis is
required to be identified which will help in identifying the different positioning of the other
competitors of Disney in the entire market. The business level strategy analysis of the major
business units of Disney is required to be done which will be essential in analysing the
success of the firm effectively. Lastly, the different merger or acquisitions of Disney is
required to be identified which will be essential for the overall success of the firm in a
positive manner.
1. A background to the study
The Walt Disney Company is the American diversified kind of multinational mass
media and entertainment conglomerate company which is situated at the Walt Disney Studios
in California. The company was founded in the year October 16 in the year 1923 wherein the
areas served by the organization is worldwide. The products which are being sold by the
organization is inclusive of publishing firms, televisions, amusement parks along with the
different web portals. The number of employees working with Walt Disney is 199000 and the
revenue which has been earned by the company is US$55.137 billion which has led to
decrease in the year 2016.
2. External Environmental Analysis of Walt Disney
The external environment analysis is essential to be conducted for Walt Disney which
will be providing the details on the different kinds of political, economic, social,

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technological, legal and environmental factors which is essential to be identified in an
effective manner.
Political factors are the first aspect in which this is inclusive of the different rules and
regulations by the government in which Walt Disney is working and performing. As this is
the entertainment company, there are different governmental policies which affect the
company largely and this plays major role in the success of the firm in a positive manner as
well. With the increase in the globalization, the different kinds of political factors have a
positive role in the industry of the entertainment sphere (Baker and Saren 2016).
Economic factors are the aspect in which this is inclusive of the different exchange
rates of the state wherein the organization is working. The element related to recession is one
of the major elements for the upbringing of Walt Disney Company. The GDP of the state is
the major factor which plays major role in contributing towards the business of the luxury
brands such as Walt Disney (Schuster 2015).
Social Factors are the aspect in which this is encompasses the different kinds of
technical trends in the society. The Walt Disney helps in providing entertainment in a
comfortable along with fascinated way, however there are different kinds of ethical issues
and pressures which is affecting the profitability of company.
Technological Factors are the factor in which technological ramifications is present
in every sphere of life. The companies like Walt Disney, the different kinds of technological
attributes such as innovation is the major key attribute. The technological advancements play
a major role in purchasing the different trendy staffs and the luxury entertainment channels,
the innovation is the major key for the success (Brown 2016).

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Legal Factors are the aspect there are various major competitors of Walt Disney in
order to maintain graph of success. However, there are different kinds of legal issues wherein
the Walt Disney is the brand for the different upper middle-class families and there are
different legal staffs which is essential for the success of the firm in a negative manner
(Buttle and Groeger 2017).
Environmental Factors are the other aspect in which this is inclusive of the different
global environmental safety laws which is required to be abide by the standards in an
effective manner. Walt Disney can play a major role by supporting the different campaigns
and following the different kinds of norms which will be beneficial for the success of the firm
in a positive manner (Fischer 2015).
3. Analysis of Key Competitors and Porter’s Five Forces Model Analysis
There are different kinds of competitors of Walt Disney which are required to be
analysed in an efficient manner which will be beneficial for Walt Disney in managing the
different kinds of activities in an appropriate manner in comparison to the different
competitors.
Time Warner Inc. is one of the major competitors of Walt Disney which engages in
the different kinds of publishing services along with filmed entertainment along with cable
network (Mason, Kjellberg and Hagberg 2015). Time Warner tries to operates through Home
Box Offices and Turner Segments. This is the second-best mass communication
conglomerate company which will be beneficial for the success of the firm. With the
implementation of the market capitalization of $76.2 billion, this has assisted in improving
the sales of the organization in a positive manner.

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Comcast is the other major competitor of Walt Disney in which this has been noticed
that the capitalization of the market is $193.5 billion and this increase in the sales of the
company has been increased in an efficient manner which will be beneficial for the success of
the organization effectively. The overall sales of the organization have helped the company in
becoming the major competitor of Walt Disney (Eckhardt, Belk and Wilson 2015).
In comparison of the two competitors of Walt Disney, this can be analysed that the
Walt Disney has reported a total increase in the second quarter of 2018 by more than 6.95%
in the single year. The growth of the revenue of the different competitors of Walt Disney has
reached growth of more than 25% which has been recorded in the same year.
Figure 1: Revenue Growth of Walt Disney and Competitors
(Source: Baker and Saren 2016)
The Porter’s Five Forces Analysis is beneficial in understanding the different kinds of
competition and the bargaining power of the competitors and the other suppliers and
customers in the market effectively.
Threat of new entrants is low at Walt Disney as there is large amount of investment
which is not possible for other competitors. The building of brand along with loyalty of the

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brand is not easy and this becomes difficult to acquire a market share in the organization
(Marshall 2014).
Bargaining power of the suppliers is moderate in nature for Walt Disney as the
different suppliers are inclusive of technology organizations along with the different other
vendors. Based on the names of the brands such as Nokia, Hulu and Philips, the suppliers
hold moderate influence on the business of Walt Disney. The switching cost of the different
suppliers is difficult as the same kind of options are not easily available from the different
suppliers (McDonagh and Prothero 2014).
Bargaining power of the buyers is weak in nature for Walt Disney as there is
popularity of the brand and the uniqueness is different from the others. Walt Disney tried in
building impressive kind of customer loyalty and this has increased their sales in an
appropriate manner (Foxall 2014). Furthermore, this has been noticed that Disney has
focused on quality on the different customers experience and the customers are willing to
spend extra due to the quality (Nguyen and Simkin 2017).
Threats of the different substitutes is low for Walt Disney as the distinct kind of
identity of the brand along with brand image of Disney has been helpful in becoming better
than the competitors. The high popularity of the brand has helped in maintaining loyalty
among the customers (Tynan, McKechnie and Hartley 2014).
Rivalry among the different existing firms in the entire entertainment industry is
high as there are various other competitors such as Fox Studios and Universal which are
providing huge competition to different services provided by Walt Disney. In this respective
industry, there is a lot which demands on the customer loyalty along with popularity of the
brand (Sekhon et al. 2014).

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3. Business Level Analysis of Walt Disney Film
There are various level business level strategies which is inclusive of corporate Level
Strategy and Business Level Strategy. The corporate level strategy is the analysis of the
different strategic decisions which the business can make and which affects the entire
organization (Dibb 2014). This is inclusive of human resource management, financial
performance and allocation of the resources. On the other hand, business level strategies are
inclusive of position of the firm and gaining competitive advantage.
Disney tries to use the differentiation as the generic business strategy for gaining
competitive advantage in the television sector. The model helps in introducing the different
kinds of unique products which are being offered to the different market segments. The
Disney television corporation tries offering entertainment products to all the individuals in
the world wherein the core emphasis is provided on family-oriented programming (Martín-de
Castro 2015).
The subsidiary Walt Disney Imagineering Research & Development, the team has
included the uniqueness of the different entertainment experiences. Moreover, the intensive
growth strategies along with associated strategic objectives of Walt Disney are being applied
along with the generic strategy and the emphasis is required to be provided on differentiated
kind of competitive advantage in managing the growth of the business effectively (Baker and
Saren 2016).
On the other hand, the intensive strategy of growth which has been adopted by Walt
Disney is product development wherein this offers new products in the current or existing
markets. The intensive strategy is linked with the differentiation strategy which has provided
their focus on uniqueness in the development of the product effectively.

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Moreover, market penetration is the secondary aspect in which the Disney achieves
the growth through the penetration of the market. This is the secondary intensive growth
strategy which has helped the Walt Disney Television in increasing their sales of the different
exiting channels and shows in the current market. In order to attract the different customers,
Walt Disney television tried to include the differentiation strategy which is helpful in
managing the expectations of the customers for different television channels.
4. Strategic Intent of Walt Disney
The strategic intent is the capacity of the organization in improving the different
existing skills and learn the new ones in order to gain competitive advantage. In order to gain
the strategic intent, the company must usually take larger better financed competitors which
will be easy for them in understanding their competition in an efficient manner.
Walt Disney’s strategic intent is the usage of the different portfolio products which
helps them in differentiating their contents and services of the television for the customers.
The Walt Disney television will be developing creative, innovative and profitable
entertainment experiences through television channels and related products in the world.

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Figure 2: Walt Disney Company
(Source: Baker and Saren 2016)
Moreover, the vision of Disney television is becoming world’s largest and leading
producers along with providers of entertainment along with information. In order to boost the
competitive advantage, Walt Disney television sector is the early mover in the service
provider category before the competition creeps in.
From both the mission and vision, this can be analysed that the strategic intent of Walt
Disney has different portfolio of products which has helped them in becoming popular in the
entire competitive market. The differentiation strategy has assisted the company in expanding
their views and the diversification of Walt Disney has assisted them in making this as the
opportunity and this is beneficial for the overall success of the company.
5. Conclusion
Therefore, this can be concluded that after the proper analysis of the external
environmental analysis of the Walt Disney Company along with the Porter’s Five Forces
Analysis, this has been analysed and identified that Walt Disney is in the competitive position
in the market in comparison to the other competitors. With the help of the brand recognition
along with strong diversification, this has assisted the Disney Company in becoming more
popular in different approaches.
Furthermore, the various types of strategic intent of Disney has been clear and there
are different opportunities of the economic and social aspects on the business of Disney
Company. Furthermore, the business level strategies of Walt Disney are inclusive of both
generic and intensive kind of strategies which has assisted them in becoming more
competitive in their approach of becoming successful.

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References
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