Walt Disney Studios SWOT Analysis: Strategic Business Review

This case study presents a SWOT analysis of Walt Disney Studios, examining its internal strengths and weaknesses as well as external opportunities and threats. Strengths include a strong brand image, financial stability, and diversified revenue streams through theme parks, movies, and merchandise. Opportunities lie in expanding into new markets, developing innovative content, and leveraging technological advancements. Weaknesses consist of declining ESPN subscriptions and high programming costs. Threats involve piracy, increased competition, and changing consumer preferences. The analysis emphasizes the importance of maintaining a strong financial position, managing a diversified business, and adapting to technological innovation for continued growth and global expansion. Desklib offers a wealth of similar resources for students.

Name: ____________________________________
Company Name: _____________________________
SWOT Analysis
Strengths Opportunities
Internal External  The positive brand image and good
financial strength has created scopes
and opportunities for the business to
excel in terms of revenue generation
and for attaining competitive
advantage in business
 With character merchandise and
licensing, new scopes are created for
business expansion
 There are more parks and resorts open
in various places of the world, which
extends business value creation and
for gaining competitive advantage in
business as well
 Walt Disney
Studios is
currently one
of the largest
producers of
animated and
motion
pictures that
has been a
major media
and
entertainment
conglomerate
in the entire
 New parks
and resorts are
opened in
various places
including
Disneyland
parks and
resorts in
Paris, Hong
Kong,
Hawaii, etc
(Disney.com,
2019).
 The
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world
 The company
has been
serving
customers
worldwide and
maintains a
diversified
business,
which has
helped in
breaking
several box
office records
(Karadjova-
Stoev &
Mujtaba,
2016)
 The
company’s
signature
movies
generation of
revenue by
selling
admission
tickets along
with
generating
revenue from
vacation club
properties and
sales of cruise
vacations
 The products
offerings are
not limited to
films but also
character
merchandises,
licensing of
publications,
books and
magazines
 The strong brand equity has helped in
becoming one of the best global
brands, which could further assist in
developing more animated movies
through its theatrical releases and
family friendly business projects
associated with it
 With the strong brand presence, it has
become easier for the company to
produce live action and animated
motion pictures, direct to video
content along with musical recordings
and live stage plays to increase client
retention
 The Consumer products segment has
facilitated the licensing structure,
publishers and intellectual properties
too for ensuring best quality lifestyle
content across interactive media
platforms (Kogan & Papanikolaou
2014)
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include
Marvel and
Star Wars
movies that
are popular
among people
 Maintained a
sustainable
position by
managing an
organizational
hierarchy and
extensive
media
networks
along with
studio
entertainment,
consumer
products and
interactive
media.
 This has
increased the
operating
income by 15
percent as
well and has
reached more
than $937
million
 Disney holds
a positive
brand image
and
sustainable
position
within the
industry
 Disney owns
and operates
the ABC
Television
network to
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 The increased
income has
been generated
with the
increased
numbers of
advertisements
and affiliate
fees
contributing to
the
accomplishme
nt of vision
and mission of
the
organization
reach most of
the
households in
United States
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Weaknesses Threats
Internal External
 Loss of many
subscribers at
ESPN, which
has resulted in
losing
multiple
domestic
television
networks
along with
pushing down
subscription
rates
(Karadjova-
Stoev &
Mujtaba,
2016)
 The sports
channel
 The
investments
made by
shareholders
often might
result in
making a
resort or park
attraction an
entire bomb,
which could
affect the
income
statement
negatively
 Failing to
meet the
global
demands and
 The increased level of piracy might
affect the business by reducing the
revenue generated from the sales of
DVDs
 High competition level with the
presence of new entrants into the
market
 The technology disruption could also
affect the business function and hinder
the production of animated movies
and live action series too (Kogan &
Papanikolaou, 2014)
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owned by
Disney, i.e.,
ESPN has
suffered loss
due to the free
live sports
streaming
available on
the internet
free of cost
 The changing
tastes and
preferences of
the clients
resulted in
business
volatility
 The highest
costs incurred
during the
programming
could affect
the business
expectations
could also
affect the
revenue
generation on
a negative
note
 Lack of
ability to
attract global
investors
could also
create a
negative
impact on the
production
facilities
(Disney.com,
2019)
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revenue as
well
How the above information will be used:
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The information and data represented in the SWOT analysis framework demonstrates the fact
that the company has maintained a good position is currently a major entertainment business
that has catered to the needs and preferences of people all over the world. Based on the
information, there are various scopes and opportunities created, which could assist the
business to maintain a strong financial position, further manage proper balance sheet, which
facilitates the flow of cash. With the use of this information, more scopes and opportunities
could be created, which are part of the external strategic factors that have contributed to the
technological innovation and to ensure growth of developing markets within the entertainment
sector as well. According to the information, it could also be understood that the company
manages a diversified business were people work together in coordination and at the same
time, facilitates revenue generation with continuataion of good results in the future as well.
The information also included a string balance sheet and good flow of cash, which could allow
the company to maage acqusitions and provide a good amount of dividend, furthermore
expand its brand presence all throughout the world with much ease and effectiveness. The
positive brand image and brand equity are necessary for producing more innovative cartoons
and live action movies that could be managed through theatrical releases all around the world,
furthermore ensure opening new theme parks and resorts and family friendly business ventures
to ensure successful global business expansion too.
References
Disney.com | The official home for all things Disney. (2019). Retrieved from
https://www.disney.com
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Karadjova-Stoev, G., & Mujtaba, B. G. (2016). Strategic human resource management and
global expansion lessons from the Euro Disney challenges in France. The International
Business & Economics Research Journal (Online), 15(3), 79.
Kogan, L., & Papanikolaou, D. (2014). Growth opportunities, technology shocks, and asset
prices. The journal of finance, 69(2), 675-718.
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