The purpose of this assessment is to have students undertake a strategic analysis that demonstrates an understanding of strategic principles and the application of strategic methods of analysis.
2) An analysis of the international business landscape upon which Disney operates;
3) Identification of Disney’s key competitors and a Five Forces analysis showing the positioning of these competitors against Disney.
4) A Business Level Strategic analysis of at least one of Disney’s major business units;
5) The strategic intent Disney has, inclusive of one significant past, or intended, merger or acquisition.
Disney's Unique Strategies in the International Market
The Walt Disney Company, which is also known as is a multinational company which has been in operation for some years. According to Armando (2015, p. 57), this company deals with a wide variety of products and services especially those related to mass media and entertainment conglomerate.
Being a multinational company, Disney faces competition from various organizations which operate both locally and internationally (Kurian 2013, p. 78). However, the use of better operational and marketing strategies has been enabling this organization to attain a competitive advantage and remain in operation regardless of the challenges which it faces. The purpose of this study is to discuss the Disney’s operating landscape, analyses its five forces, analyze its business level, its strategic intent and finally come up with a conclusion concerning the study.
Disney is a diversified company which has been implementing various unique strategies to operate in the international market. The mission of this company is to be among the leading world’s best entertainment service providers as well as verified information through utilizing a variety of its brands to differentiate the content and services it provides to its consumers (Daniela 2012, p. 204). Its management seeks to come up with the most creative and innovative brands in the industry by undertaking extensive research to identify customer needs and changes that occur in the international market.
According to O’connor (2012, p. 56), the leadership team in this company has been running one of the world’s biggest and most renowned media company and has been working to come up with some of the most consumed entertainment contents around the world. Its strategies mostly focuses on coming up with a content that portrays creativity by encouraging innovation and technological advancements, while expanding into as many markets as possible around the world.
The company views its customer as essential assets for the business because they are the reason why the company has been in operation. For this reason, its management has been striving to ensure what the company does is for the best interest of the consumers through ensures its subsidiaries around the world emphasize on the satisfaction of its client (Douglas 2012, p. 209. Considering this factor in its operations has been making the management to encourage various things such as undertaking market research to understand the changes in consumer perception, encouraging teamwork to ensure staff members share ideas, and using proper operational and marketing strategies to ensure the company attains its goals and objectives.
According to Kurian (2013, p. 76), the executive management in this company delivers entertainment content which is that are invited in many families and other domains around the world. The management team understands that being a multinational company, Disney exposes itself to wider competition and therefore it is essential to commit itself to excellence, creativity, and innovation.
According to Knight (2014, p. 145), Disney’s’ has different subsidiaries and affiliates operating in different countries, and ones which consumers term as the best in delivering family entertainment and other services such as media enterprise. In its operations, the company uses various segments which include cable networks, parks and resorts, broadcasting, studio entertainment among others.
Disney's Focus on Customer Satisfaction
The company trusts that relating to consumers is crucial and therefore focuses on establishing various platforms which can assist it to communicate with the clients more conveniently (Douglas 2012, p. 207). These platforms help the company to enhance its operations by using the information it gets from the customers to identify its strengths, weaknesses and the areas that it needs to improve.
Since its inception in the 1920s, Disney’s management has been using various strategies to establish a diverse empire which has enabled the company to establish an assortment of lucrative products in different markets around the world. Although this company has been striving to establish a strong customer base, it faces competition from various firms which operate both locally and internationally. According to Harrignton (2014, p. 76), some of the Disney’s main competitors include Viacom (VIA), Sony (SNE), CBS, 21st-century fox (FOX), Time Warner (TWC), and Comcast (CMCSA).
Although located in different countries, these organizations have been competing with Disney through various segments, although some of them seems not to have known the best strategies to challenge Disney. According to Reilly (2013, p. 132), the growth of multichannel video programming network distributors and cable networks has increased the competitive pressure for Disney. According to Berman (2014, p. 79), irrespective of competition which exists in the market, Disney has been using unique operational and marketing strategies and has been able to grab more than 50 percent market share in the digital media company fusion and approximately 33 percent stake in the video streaming platform “HULU.” The company has also established an inimitable brand experience that has enabled it to attain strong brand loyalty from its consumers. Here is an analysis of the five forces of this company based on the renowned model developed by Michael Porter.
The threat of new entrants in this company is low because for other firms to come up with a brand like Disney, they may require to cope with big investment which may be challenging to some people. Apart from the substantial investment required to come up with the brand, Douglas (2012, p. 204) asserts that skilled human resources are also necessary to manage a brand of this size. Coming up with brand loyalty which Disney has established in the global market is not easy because it needs investment and time, and this may not be easy especially for a small brand. Additionally, although small brands may attempt to penetrate in the market, stiff rivalry from big players can make it difficult for them to attain market shares.
The bargaining power of suppliers in Disney can be termed as moderate. According to Jak (2016, p. 134), its suppliers include firms which deal with technologically related products, media partners, among other vendors. Most of its suppliers such as ESPN, Hulu, Tumblr, and Philips are influential and also have strong brand names and therefore have a moderate impact on this company. Because most of the options provided by these suppliers cannot be provided by other firms, switching suppliers is not easy (Douglas 2012, p. 208). However, the smaller players in this industry do not have influence and therefore can be switched away from easily.
According to Fbci (2011, p. 163), the bargaining power of buyers is relatively weak because primarily because of the popularity of its products and the unique experience which the company provides to its consumers. Over the years, this company has been focusing on customer experience and service and this has enabled it to achieve high customer loyalty and reputation (Douglas 2012, p. 204. This has been making its consumers to be willing to purchase at higher prices as long as they get better experience and satisfaction. These factors have been crucial for Disney because they have assisted in reducing the bargaining power of the customer.
Considering the fact that this company has created a distinct brand identity and image, the threat of substitutes for Disney is low. Additionally, the influence associated with this company is better and most significant as compared with those established by its competitor and therefore smaller substitutes offering similar products or services do not hold big influence or even pose a threat to Disney (Armando 2015, p. 57). When it comes to this company, every customer understands what it deals with and why it is famous.
According to Mattone (2013, p. 47), the rivalry among the players in the media and entertainment industry has been high. Apart from players such as universal and fox studios, there are other firms which provide similar brands such as amusement services and theme parks and therefore makes competition for market share to be stiff. In this industry competitive advantage depends on the customer experience and brand image, and therefore every company strives to ensure it comes up with unique strategies to come up with better brands (Tracey 2013, p. 100). However, the success of these strategies is not always guaranteed because with time they are imitated by competitors, hence making competition in the industry to intensify.
Over the years, this company has been focusing on providing value for its customers by ensuring all needs are met when delivering products and services. For the Disney television, this company focuses on ensuring that it is preferred by most viewers in not only the United States but also in other countries where this company does its business.
To create a strong customer base through this unit, the company ensures that it undertakes extensive research to understand various things such as changes in consumer perceptions, emerging trends, the influence of new technology and so forth (Tracey 2013, p. 99). One of these factors have been identified, the company uses the information obtained to identify the areas that require changes to ensure the product matches the expectations of the consumer.
Disney also wants this brand to remain competitive as other companies which are also trying to attain a competitive advantage by ensuring their brands are unique. For this reason, its management has been ensuring that it introduces as many channels with programs which suites the interest of the consumers (Mattone 2013, p. 47). For example, it ensures that there are programs or channels which are suitable for children, youth, adults, and general family viewing. This strategy has been playing a crucial role in ensuring the company covers consumers with different interest and therefore does not give them an opportunity to seek similar services from its competitors.
Analyzing the Competitive Landscape of the Disney Company
Irrespective of competition, Disney TV has been the most consumed brand in not only the United States but also in other countries because most of the consumers associate with various things such as satisfaction, convenience, and reliability (Richard 2011, 98). To continue making this brand the most preferred by consumers, this company has been focusing on innovating as much as it an and adjusting to technology to ensure the customers get full satisfaction and views Disney as a company which is dedicated to delivering the best to its customers.
While operating in the global market, Disney has various things that it endeavors to achieve. For example, it wants to continue strengthening its brand image by ensuring it makes the customers to view it as the only choice for addressing their needs (Tim 2016, p. 67). In its television unit, Disney wants consumers in different parts of the world to view this product as the unique and worthy to be consumed.
According to Tracey (2013, p. 98), the management in this company has been striving to ensure it continues to come up with strategies which can assist it to attain competitive advantages over its new global rivals. To achieve this, it focuses on using unique strategies to differentiate its products and services from those of its competitors and to target customers in the right manner. In the future, Disney wants to continue innovating new products and services that will match customer expectations and serve their needs to satisfaction.
According to Zbigniew (2012, p. 78), Disney understands that there has been digital revolutions and as time goes on, people are moving from the old ways of doing things to adopting the digitized ways of addressing their needs. For this reason, the company has been doing extensive research to ensure it comes up with products which will not be termed as obsolete even as new technologies continue to emerge.
Being one of the leading companies in this sector, this company knows that its competitors are using it as a benchmark for their operational strategies and therefore has been employing unique strategies to ensure their rivals get challenges when they implement them in their operations (Tim 2016, p. 67). The company also uses unique features in its brands to ensure its competitors cannot imitate.
Destiny is an American company wide variety of products especially those related to mass media and entertainment conglomerate. The company operates in different countries and experience competition from both local and international companies which offer similar products and services. Some of the key competitors for this company include Viacom (VIA), 21st-century fox (FOX), Sony (SNE), Time Warner (TWC) CBS, and Comcast (CMCSA). To attain a competitive advantage, the company has been focusing on ensuring the customer is viewed as an important asset to the company and all services and products are of high quality and unique.
An Analysis of the five forces in this company indicates that the threat of new entrants is low because to come up with a brand like Disney, one needs to cope with huge investment and this may not be possible for everyone. The bargaining power of suppliers of this company is moderate, while the bargaining power of buyers can be said to be weak because the company has a strong brand image and has established customer loyalty. The threat of substitutes for Disney is low has created a unique brand identity and image, and the rivalry among the existing brands is high because there are so many big players which offer similar brands.
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