The Walt Disney Company Marketing Essay Case Study

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The Walt Disney Company Marketing Essay Introduction

SWOT analysis is the basic analysis that is done within the internal environment of the company based on the different products that it serves (Gürel, 2017). And on the contrary, PESTLE analysis can be said as the detailed glimpse of the environment a business is presently placed in.

Company Name

The Walt Disney

Type of Industry

Mass media networks, Studio Entertainment 

Headquarter

Burbank, United States

Sales/ Revenue

$59.43 billion

Area served

Anaheim, Paris, Hong Kong, Shanghai, Tokyo and California

Number of stores

4

Competition

Viacom, 21st Century Fox, CBS, Comcast (CMCSA), Sony, Time Warner (TWC)

USP

Theme parks designed exclusively for children, cruise line and travel-related assets

Target Group

Children and teenagers

Products

Television shows, movies, the company’s cruises, park and tours

Website

https://www.thewaltdisneycompany.com/

The Walt Disney Company Marketing Essay SWOT Analysis

Strengths

  • Flourishing portfolio
  • Strong and popular brands
  • Strong growth of cooperative between business sectors

Weaknesses

  • Limited modernization
  • Less diversity
  • Limited amusement parks extension

Opportunities

  • Digital Technology modification
  • Steady growth among different industries
  • Expansion of evolving mass media market

Threats

  • Rival companies like Sony, Time Warner (TWC), Viacom, 21st Century Fox, CBS, Comcast (CMCSA)
  • Plagiarism of digital content
  • Interruption of technology 

Analysis

The present position of The Walt Disney Company is achieved through analyzing the strength, weakness, opportunities and threats, that is SWOT factors in the worldwide market (Phadermrod et al. 2019). As per the case study of Walt Disney, the internal factors reinforce the management planning in order to grow the industry amongst combative competition in the world mass media and entertainment industries. Walt Disney holds a very strong and popular brand which makes it the most readily recognizable company worldwide. This strength presents the company as very family oriented industry which is suitable for all kinds of customers. From the case study of The Walt Disney, analysis of SWOT helps to manage the expectations of customers, which favors to the positive reputation of Walt Disney. Company’s growing portfolio also contributes to the strength of the business. Also the organizational structure of The Walt Disney further promotes commonly constructive cooperation among different business sectors.

In the idea of Lambini et al. (2016), the rapid innovation that involves advanced technology is very much limited with the operations of the company. Another weakness as analyzed is limited diversification which is dependent on collaboration with business sectors. Collaboration requires those businesses that are very closely related and those have the same competitive market. This analysis of the section shows that The Walt Disney Company requires changing some of the root strategies and approaches of the management. 

As per the case study of The Walt Disney Company, there are scopes and opportunities for this entertainment company to embrace Digital Technology in order to make a better way in the target market. Steady growth of the company among other industries is also an external factor that brings a great opportunity to evolve through different approach of the management and diversification. The growing market is an external factor that creates an opportunity to enlarge the operation through market infiltration in the entertainment industry.

Taking an idea from the case study of The Walt Disney, rivalry is the most vital threat as coined in this SWOT analysis and those existing rival companies are 21st Century Fox, Viacom, Sony, and many more. International market mostly observes aggressive competition, which most of the times makes a way for the different threats that a company can face in the future (Bismark et al. 2018). Plagiarism of the digital content is also a major threat faced by a company often when the market is weak with. Technological disruptions also have great potential to reduce the profit of the company to a large extent.

The Walt Disney Company Marketing Essay PESTLE Analysis

Political

  • Moving of free trade policies
  • Balanced Political situation
  • Intellectual property protection

Economic

  • Fast economic growth of developing market
  • Disposable income’s growing rate
  • GDP of $20.50 trillion

Social

  • Growth in online actions
  • Growth in Cultural diversity
  • Positive attitude on recreation

Technological

  • High research and development rate
  • Increasing demand of developing reality

Legal

  • Expanding intellectual property protection
  • Restructuring consumer’s rights legal protection
  • Environmental protection law

Environmental

  • Availability of renewable energy
  • Cyclical weather change
  • Increase in sustainability

Analysis

PESTLE analysis check out the external factors in the macro environment related to the firm. As per the case study of The Walt Disney, PESTLE analysis affirms many opportunities within the global market that supports a massive growth in the entertainment and mass media industry.

Political support seemed to be reducing the intellectual property offenses opposite to the global industry (Perera, 2017). Considering the moving free trade policy that is labels as an external factor, scares to construct an imbalance in the business environment of Disney. As per the case study of The Walt Disney Company, this analysis looks up to a balanced political condition of dominant markets in order to witness a steady growth.

A rapid economic growth is one of the vital opportunities that a company must grab for its future growth as well as success. In relating to the economic growth, the growing rate of the disposable income helps the company products’ to get sold out at a higher rate. And also worth mentioning is the GDP of the US which is considered to be one of the threats that the company might face in the context of the global market (Thewaltdisneycompany.com, 2019).

The PESTLE analysis shows a strategic growth that have a favorable attitude towards recreation and which also includes a diverse cultural growth in the international market. As per the case study of The Walt Disney, the high rate of research and development fastens growth of technological advancements. Taking ideas from the case study of Walt Disney Company, the cyclical weather which is changing as well as worsening day by day is a threat to the company. And lastly the legal factor that restricts implementation of environmental protection laws is increasing. The analysis also makes a view to strengthen the different strategies that will improve the sustainability of the business, intellectual property application and also the experience of the customers.

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Reference List

Bismark, O., Kofi, O.A., Frank, A.G. and Eric, H., (2018). Utilizing Mckinsey 7s Model, SWOT Analysis, PESTLE and Balance Scorecard to Foster Efficient Implementation of Organizational Strategy. Evidence from The Community Hospital Group-Ghana Limited. International Journal of Research in Business, Economics and Management, pp.94-113.

Bull, J.W., Jobstvogt, N., Böhnke-Henrichs, A., Mascarenhas, A., Sitas, N., Baulcomb, C., Lambini, C.K., Rawlins, M., Baral, H., Zähringer, J. and Carter-Silk, E., (2016). Strengths, Weaknesses, Opportunities and Threats: A SWOT analysis of the ecosystem services framework. Ecosystem services, 17(3), pp.99-111.

Gürel, E. and Tat, M., (2017). SWOT analysis: A theoretical review. Journal of International Social Research, 10(51).

Perera, R., (2017). The PESTLE analysis. Sri Lanka: Nerdynaut.

Phadermrod, B., Crowder, R.M. and Wills, G.B., (2019). Importance-performance analysis based SWOT analysis. International Journal of Information Management, 44(2), pp.194-203.

Thewaltdisneycompany.com (2019). Company Report. Available at: https://www.thewaltdisneycompany.com/the-walt-disney-company-reports-third-quarter-and-nine-months-earnings-for-fiscal-2019/ [Accessed on 15 August 2019]

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