Introduction and Methodology

The overall aim of this paper is to examine the Walt Disney Company by assessing their
expansive history and many media platforms as it correlates with coursework information and
knowledge. This paper contains research and assessments in sub-sections that will utilize a
variety of strategic management concepts and techniques in order to evaluate the organization.
The subsections will include analysis of the Walt Disney Company through PESTE, internal
environment analysis, strategic analysis, and competitive advantage analysis. The information
supplied in this project has been gathered from reliable sources such as The Washington Post,
our strategic management textbook, and the International Chamber of Commerce.

History

Mission

"The mission of The Walt Disney Company is to be one of the world's leading producers and
providers of entertainment and information. Using our portfolio of brands to differentiate our
content, services, and consumer products, we seek to develop the most creative, innovative and
profitable entertainment experiences and related products in the world." Disney’s mission
statement is strong as it briefly describes the purpose of the company and clearly includes why
the organization is in existence. The company concisely explains its intention to utilize its vast
portfolio to differentiate itself on the market and strongly emphasize its purpose of providing
creation and innovation to its clientele.
https://www.thebalancesmb.com/walt-disney-mission-statement-4068544

Vision

Disney’s vision statement is “to be one of the world’s leading producers and providers of
entertainment and information”. This is a particularly strong vision as it clearly describes where
the company wants to head into the future from its current position. The organization uses
specific words like “world’s leading” to emphasize the scope they are aiming to reach. This
statement displays the company’s targets and alludes to what its goals are without being too
specific.

6. PESTE
● http://panmore.com/walt-disney-company-pestel-pestle-analysis-recommendation
s
● https://pestleanalysis.com/pest-analysis-of-walt-disney-company/
● Political
○ Opportunity
■ Stronger intellectual property protection
○ Threat
 ■ Travel ban
● https://www.washingtonpost.com/business/capitalbusi
ness/after-trumps-travel-ban-tourism-outfits-say-that-b
rand-usa-has-taken-a-hit/2017/04/14/d0eebf4e-158e-
11e7-833c-503e1f6394c9_story.html?utm_term=.7e6
5516dc1af
■ Censorship
● https://www.laughingplace.com/w/news/2018/02/28/di
sney-reportedly-now-banned-word-chinese-internet/
● Economic
○ Opportunity
■ Increasing disposable income that will make consumers
more willing to spend on entertainment
■ https://tradingeconomics.com/united-states/disposable-perso
nal-income
■ “the U.S. market provides the bulk of the company’s
amusement parks and resorts revenues” -
http://panmore.com/walt-disney-company-pestel-pestle-anal
ysis-recommendations
○ Threat
■ Slowing growth of chinese economy
■ https://www.washingtonpost.com/business/as-chinas-econo
my-slows-why-the-world-should-care/2019/03/05/93fae57c-3
f0d-11e9-85ad-779ef05fd9d8_story.html?noredirect=on&utm
_term=.b177b32512bd
● Sociocultural
○ Opportunity
■ Favorable attitudes towards leisure spending and travel
●
https://lodgingmagazine.com/survey-shows-record-br
eaking-increase-in-leisure-travel/
● FOMO with rise of social media
○ https://www.smartinsights.com/social-media-m
arketing/social-media-strategy/new-global-soci
al-media-research/
■ Increased online activity and sales
● https://www.statista.com/statistics/251666/number-of-
digital-buyers-worldwide/
○ Threat
 ■ Push for cultural diversity
■ Society’s increasing sense of justice and fairness for others -
increase in social media usage can also result in very public
backlash
● Technological
○ Opportunity
■ Apps
■ Magic bands
■ New VR experiences draw in larger crowds or new markets
(those who are not keen to ride a coaster but may try VR)
○ Threat
■ Technological error
■ Technology resulting in loss of service jobs

● Environmental
○ Opportunity
■ Increase in renewable energy usage
● can bolster company image
● Can save company $, and make the company money
by marketing toward those who are concerned about
the environment
○ Threat
■ Climate change
● threatens Disney’s theme parks and resorts
operations

7.Porter’s
http://panmore.com/walt-disney-company-five-forces-analysis-porters-recommendations
https://www.porteranalysis.com/porters-five-forces-of-walt-disney-company/
1. Competitive rivalry or competition (Strong force)
a. Threat
i. High threat of competition in terms of other media and
entertainment outlets
1. 21st century Fox, CBS, Time Warner, NBC
b. Opportunity
i. Has opportunity to grow with theme park and media as these bring
in majority of revenue for company
 1. The differentiation strategy the company uses by remaining
a strong competitor in multiple segments of the industry is
how they can combat this rivalry
2. Bargaining power of buyers or customers (Strong force)
a. Opportunity
i. Strong sense of loyalty to brand - probably will not negotiate for
pricing and will probably contintue to purchase Disney products
despite price increases (up to a point)
1. This allows ability to increase tickets and merchandise
2. https://www.forbes.com/sites/careypurcell/2018/02/12/shorte
r-lines-at-disney-world-will-cost-you-trying-for-crowd-control-
disney-raises-ticket-prices/#5a5b1cf14e5e
b. Threat
i. Low switching cost
1. Consumers can easily switch to Disney’s competitors with
low cost to them. Companies such as Comcast even has the
Universal Studios theme parks that are in the same location
and provide a similar experience as well as box office movie
hits just like Disney has, giving consumers some kind of
bargaining power with threat of switching to its competition.
3. Bargaining power of suppliers (Weak force)
a. Opportunity
i. Disney is a large company that has multiple suppliers including
technology suppliers, distributors, and manufacturers at both local
and global levels. Becuase of its influence in the industry, supliers
look to maintain a positive relationship with Disney and do not have
much bargaining power. To focus on bolstering this relationship,
suppliers for this company “focus on continuing their supplier
contracts with such a large scale [business], rather than engaging
in intense
negotiation”.https://www.porteranalysis.com/porters-five-forces-of-w
alt-disney-company/
ii. There are such a variety of suppliers in this entertainment field that
Disney could easily choose a different one, making the bargaining
power weak on the suppliers side.
b. Threat - Though there are many suppliers to choose from, Disney does
face the threat of ensuring quality and brand image. Disney must choose
suppliers carefully to maintain their positive brand image as well as their
high-quality services and product. In this sense, suppliers that provide
 exceptional and unique products, etc., do have some bargaining power as
it may be difficult to find a supplier that creates at such quality.
4. Threat of substitutes or substitution (Moderate force)
a. Disney has made its products and services a unique and high quality
experience that is hard to replicate, so the threat of substitution is quite
low. An opportunity would be to market to the competitors’ target markets
in an attempt to gain more business seeing as there are aspects of
Disney’s service that are unique to the industry.
b. A threat would be consumers that are more price sensitive as these
individuals may find Disney’s recent price increases intimidating. These
consumers may opt for lower cost entertainment with some of Disney’s
competitors. The chances of this do seem slim however because of the
loyalty the brand has built with its clientele
5. Threat of new entrants or new entry (Weak force)
a. Opportunity - New entrants into this field of hospitality and
entertainment require high levels of capitalization to succeed
because the market is so saturated and dominated by larger
companies. Because of this high entry barrier, new entries to this
industry may find it near impossible to be considered as
competition. Disney has the opportunity to continue to grow its
brand in this market without much threat from new companies or
products.
b. Threat - lower cost entertainment options will always be a threat
to Disney, though they don't produce the same quality product. As
Disney increases its prices, there will be some part of its
consumers that will seek newer, more unique experiences for a
possible lower cost or something they see as more valuable for
their money.

Disney should continue to create unique and inimitable service through

research and development to attract consumers and reduce threats. It is
important for Disney to have a variety of suppliers and maintain their
importance to their current suppliers to retain their bargaining power. They
need to continue to expand their target market research and maintain brand
loyalty to reduce the buyer’s bargaining power. The Walt Disney Company
should continue its focus on service by implementing new innovation to
discourage consumers from straying to reduce the threat of substitutes. They
also need to increase its market size and differentiation to reduce competition.

10.
https://www.thewaltdisneycompany.com/walt-disney-company-announces-strategic-reorganizati
on/
The company’s overall strategy, its strategic direction, leadership, main problems,
and challenges: In this section, you should explain what the company’s overall
generic corporate, business, and functional strategies (where appropriate) are and
explain the company’s overall strategic direction and leadership.Here you should
also discuss and evaluate strategic problems and challenges that the company
currently faces or may face in the future.

Main challenges:
Box office missteps:
https://www.forbes.com/sites/laurengensler/2016/05/11/disney-wall-street-espn-star-
wars-zootopia/#47581fc196ea

Challenges when making streaming content Disney+:

https://www.nbcnews.com/tech/tech-news/take-netflix-disney-faces-challenge-embra
cing-technology-n898446

Bringing diversity into its media content in a tactful manner:

Casting jungle cruise gay character with a straight white actor:

https://www.indiewire.com/2018/08/jungle-cruise-jack-whitehall-gay-character-backla
sh-1201993567/

Backlash with making a character gay in Beauty and the Beast

https://www.usatoday.com/story/life/movies/2017/03/04/russia-beauty-and-beast-ban-due-over-g
ay-character-lefoux/98743116/
11. Recommendations
“Given that competition and customer power are the most significant strategic
management concerns determined in this Five Forces analysis, it is recommended that
Disney focus on developing competitive advantages to further strengthen its brand. This
recommendation addresses the leadership objectives contained in Disney’s corporate
vision and mission statements. The company has one of the world’s strongest brands,
ensuring business competitiveness in the global entertainment, mass media and theme
parks industries. However, aggressive competitors can reduce this relative brand value
in the industry environment. Thus, strengthening the brand helps overcome the external
factors linked to high-intensity competitive rivalry. This Porter’s Five Forces analysis of
Disney also warrants strategies for customer retention to address the strong bargaining
power of customers. For example, high quality attractions coupled with the company’s
brand can optimize customer retention in the amusement park industry. Enhancing The
Walt Disney Company’s generic competitive strategy and intensive growth strategies
can effectively address such concerns in this component of the external analysis.”
http://panmore.com/walt-disney-company-five-forces-analysis-porters-recommendations