FACULTY OF ADMINISTRATIVE SCIENCE & POLICY STUDIES

AM225: BACHELOR OF CORPORATE ADMINISTRATION (HONS)

ADM 650: CORPORATE STRATEGIC MANAGEMENT

GROUP ASSIGNMENT
THE WALT DISNEY COMPANY

PREPARED BY: GROUP 4 FROM AM2256C

NAME STUDENT ID

NOR LIYANA BINTI ISMAIL 2020985793

NOR SYAHIRAH BINTI KAMARUL AZMAN 2020993485

NOR SYAWANI BINTI ISHAK 2020974069

NUR SYAZWANI HUSNA BINTI AMRAN 2020964449

NURUL FATHIHAH BINTI RIDZWAN 2020974049

PREPARED FOR:
HAJAH MAY SAPURA BINTI MOHD SHAZILLI

DATE OF SUBMISSION:
21st JANUARY 2022
 Table of Contents
1.0 INTRODUCTION......................................................................................................... 1
1.1 Background and History of Disney ............................................................................. 1
1.2 Vision .......................................................................................................................... 1
1.3 Mission ........................................................................................................................ 2
1.4 Objective of the Case Study Analysis ......................................................................... 2
2.0 SITUATIONAL ANALYSIS ....................................................................................... 3
2.1 General Environment .................................................................................................. 3
2.2 Industry Environment Analysis................................................................................... 4
2.3 Internal Analysis ......................................................................................................... 5
2.3.1 Internal Factors Evaluation (IFE) Matrix ............................................................ 5
2.4 External Analysis ........................................................................................................ 6
2.4.1 External Factors Evaluation (EFE) Matrix .......................................................... 7
2.5 Competitor Analysis (Competitive Profile Matrix) .................................................... 8
3.0 SWOT ANALYSIS ..................................................................................................... 12
4.0 STRATEGY FORMULATION................................................................................. 14
4.1 Alternative Strategies (Matching Stage) ................................................................... 14
4.2 Alternative Choices ................................................................................................... 16
4.3 Decision Making Stage ............................................................................................. 19
5.0 STRATEGY IMPLEMENTATION ......................................................................... 19
5.1 Execution................................................................................................................... 19
5.2 Target Outcome ......................................................................................................... 20
5.3 Actual Outcome......................................................................................................... 21
5.4 Issues ......................................................................................................................... 21
6.0 STRATEGY EVALUATION .................................................................................... 23
6.1 Quantitative Method.................................................................................................. 23
6.2 Qualitative Method.................................................................................................... 24
6.3 Corrective Actions..................................................................................................... 25
6.4 Revised SWOT Analysis ........................................................................................... 26
7.0 CONCLUSION ........................................................................................................... 27
8.0 REFERENCES............................................................................................................ 28
1.0 INTRODUCTION

1.1 Background and History of Disney

Walt Disney and his brother Roy founded the Disney Brothers Cartoon Studio in
Hollywood, California on October 16, 1923. The Walt Disney Company, now known as the
Walt Disney Studios, has had a massive impact on the entertainment industry and is now one
of the world's major media conglomerates. Disney is definitely a leading diversified
international family entertainment and media enterprise with Disney Parks, Experiences, and
Products such as Disney Media & Entertainment Distribution and three content groups which
are Studios, General Entertainment, and Sports. These groups, they mainly focused on
developing and producing content for DTC, theatrical, and linear platforms. The Walt Disney
Company has since released a countless of pioneering and critically acclaimed films. Since
1955, Disney has grown into a holding company for a variety of media and entertainment
holdings, also developing theme parks throughout the world and purchasing dozens of
businesses in the 1990s and 2000s. ABC, ESPN, Pixar, Marvel Studios, and Lucasfilm are
already owned and operated by Disney. Disney began as a small group of animators making
short children's cartoons has grown into one of the world's most recognisable brands. Original
Disney cartoons and feature films are among the most popular and well-known works in the
American film society, especially (History, 2020).

1.2 Vision

The vision statement of the Walt Disney company is “To make people happy”.
According to David (2017), the good vision statement must be based on what the company
wants to become especially in the long-term course and preferably in a one sentence. The
vision, strategic planning, culture, and basic values of a company must all be in sync to ensure
the succeed of one’s organization or a company. Based on the Walt Disney’s vision statement,
it is short and nice and in one sentence which is the good vision’s statement as one can see.
However, the vision statement does not show on what The Walt Disney to become and it is
not quite specific and clear on what they wanted to be in the long run. As can be suggested,
Disney can become the most well-known family entertainment in the world through movies,
radio theme parks and cruises globally.

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 1.3 Mission

The mission statement of 2013 of the Walt Disney is "To be one of the world's leading
producers and providers of entertainment and information, using its portfolio of brands to
differentiate its content, services and consumer products. The company's primary financial
goals are to maximize earnings and cash flow, and to allocate capital toward growth initiatives
that will drive long-term shareholder value". According to Peter Drucker, the father of modern
management, mission is when the company throw out the questions such as “What is our
businesses?”, “What is our mission?” or “Why we exist?”. A company or an organization
needs a clear mission statement prior to the establishment of the objectives and also
formulation of strategies of the entity. Based on the Walt Disney case study, it is product and
service-oriented statement, and they focus on what products to sell and what services to offer.
But there is lack of other components such as the customer satisfaction, the concern of public
image and the philosophy and technology. Peter Drucker mentioned that all of these
components are essential for the effective mission statements of an organization or a company.

1.4 Objective of the Case Study Analysis

The objective or the purpose of The Walt Disney case study analysis is to study the
factors namely as internal, external and environmental and other related factors that makes
Walt Disney one of the world's largest conglomerates in term of revenue, management and
overall performance. Next, the purpose of this analysis is to study the competitive analysis of
the potential competitors of Walt Disney, by which how these competitors relate to each other
and how they compete towards each other to sustain in the market. The other purpose of the
case study analysis is to analyse the marketing and strategic management of Walt Disney and
the competitors based on the companies’ performance. Finally, the objective of this case study
analysis is to study the potential threats and opportunities in the strategic and marketing
management of the Walt Disney Company that they might face and achieve the profitable
goals of the company itself.

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2.0 SITUATIONAL ANALYSIS

2.1 General Environment

The economic success of Walt Disney Company depends on a lot of external factors.
One of the general environment factors that give impact on Walt Disney is economic factor.
This factor indicates that the company is really dependent on their developing markets and
their rapid economic development. They can expect an increase in revenue from US and Asian
market since they are a major contribution to the company’s revenue. For instance, in the
developing Asian countries, where their entertainment and mass media products are at their
peak such as parks and cruise has been a reliable profit driver for Disney (BBC News, 2020).
In another perspective, the global economic downturn also hits their theme park industry
which the recession caused them to cut about 1,900 jobs (India, 2013). This shows that this
element really affects their economic performance either in positive or negative ways.

Besides, sociocultural factor is also one of the general environment factor that give
impact on Walt Disney Company. This factor can be seen from the customers’ behaviour and
activities towards their products. This is because people’s favourable attitude and behaviour
towards their amusement parks and movies will significantly impact Walt Disney. That is why,
it is necessary for Disney to set and develop its strategies based on people’s expectation and
attitudes (MBA Skool, 2020). Thus, customers’ feedback is vital for this industry to work on
a global scale. Furthermore, as many individuals are interested in purchasing their products
online, an increase in customer online activity can also benefit the company. This shows that
this sociocultural factor benefits both the business as well as the customers.

Another general environment factor that gives impact on Walt Disney Company is
technological factor. This element focuses on the technologies used by the company. As we
know, Disney used advance technology to develop its theme parks. For instance, Disney has
been using Internet of Things (IoT) and wearable tech to transform Disney theme park
experience since 2013 (Mitchell, 2020). Moreover, digital technologies also play a major role
in producing films like Disney has increase their usage of advanced computer in order to
provide better and competitive products (MBA Skool, 2020). This shows that this
technological factor is important for Disney to become part of the international industry.

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 2.2 Industry Environment Analysis

Industry environment is defined as factors that have directly affect the organization
and its competitive responses. It was based on the Five Forces Model and one of the factors
that affect Walt Disney Company is threat of substitute products. As we know, technological
innovations and high competition has created many alternative choices for consumers. Some
customer show price sensitivity and opt for low-cost entertainment options (Harwell, 2015).
So, Disney need to have better understanding about the customer’s needs and provide them
with high quality products that is difficult to duplicate by competitors. However, Walt Disney
Company has the potential to attract the customers away from substitutes and able to establish
brand loyalty due to their technological innovations. This enables them to cope with
competitors in the industry.

The next industry environment that affects Walt Disney Company is bargaining power
of buyers. Customers definitely have power as the company’s operations require a huge
number of customers to run smoothly. They have the ability to choose and also demand a lot
as they want to purchase the finest products at the lowest possible cost. That is why, customers
can easily migrate from one provider to another due to the low switching costs. (Brown, 2019).
So, Disney need to increase the switching cost and keep on innovating new products which
can limit the buyer’s bargaining power. However, customers unable to discover other
companies that make the same product since the product differentiation is high within the
industry. This shows that Disney able to cope with this matter since the bargaining power of
buyers is still low.

Another industry environment that affect Walt Disney Company is rivalry among
existing firms. In the media and entertainment industry, Disney competes with a number of
well-known brands which raise the level of competition in the industry. Apart from Universal
and Fox Studios, there are other studios, amusement services and theme parks that compete
with Disney (Pratap, 2017). Universal Animation Studios, for example, competes with Walt
Disney Animation Studios by producing high-quality animated movies. This major threat has
the potential to lower prices and reduce overall profitability. That is why, customer experience
and brand image are crucial. Thus, Disney need to build a sustainable differentiation or even
collaborate with competitors to increase its market size.

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 2.3 Internal Analysis

An internal analysis is the strategy that being used by the companies to measure their
internal components in physical or intangible (Indeed Editorial Team, 2021). Internal analysis
enables business decision-makers to properly identify areas for expansion or adjustment in
order to develop a workable business strategy or business plan. There are many ways on how
company can conduct their internal analysis such as SWOT analysis, gap analysis and strategic
evaluation. Internal analysis are important for business because it help companies to identify
their strength and weaknesses of their business. Through this way, the company can find
solution to improve their business to be more quality. There is one method on how to measure
internal analysis in which companies can use Internal Factors Evaluation (IFE) Matrix.

2.3.1 Internal Factors Evaluation (IFE) Matrix

Internal Factors Evaluation Matrix is a key strategy that is used to examine a

business's organizational conditions and to identify both its strengths and weaknesses
(Mithun Sridharan, 2021). This matrix also makes a company easier to figure out and
judge the connections between their measurement area. There are five steps to develop
internal factors evaluation. The first on is by listing the key internal factors which are
strength and weakness in the sequences. They should list the strength first and followed
by weaknesses. Second step is set each of the factor with a range of weight that started
from 0.0 until 1.0. the weight of 0.0 are considered as not important and 1.0 is the very
important range and the total weight must be 1. Next step is giving each factor a rating
ranges from 4 to 1. 1 consist of major weakness, 2 for minor weakness, 3 for minor
strength and last 4 for major strength. The fourth step is by Multiply each factor’s
weight by its rating to determine a weighted score and the last step is sum the weight
score in order to determine the total weight score. The highest score must be 4 and
lowest score is 1. Below is table of internal factors evaluation matrix by Walt Disney
Company.

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 Weight Rating
Key Internal Factor Weighted score
(0-1) (1-4)

Strength
1. Strong product portfolio 0.15 4 0.60
2. Brand reputation 0.18 4 0.72
3. Proficient team 0.10 4 0.40
4. Diversified business 0.08 4 0.32
5. Localization of products 0.05 3 0.15
Weaknesses
1. High cost of production 0.15 1 0.15
2. Specific target market 0.09 2 0.19
3. Poor financial planning 0.10 1 0.10
4. Vulnerable to competitors 0.05 1 0.05
5. Income dependence from North
0.05 2 0.10
America

1.00 2.77
Total
Table 2.3.1: Internal Factors Evaluation Matrix of the Walt Disney Company

Based on the internal factors evaluation matrix of Walt Disney company, it

shows that a few strength and weaknesses are being measured. From the table it shows
localization of products is a minor strength for Walt Disney company while the other
four strength are the major strength for this company. Besides, weaknesses of Walt
Disney which are high cost of production, poor financial planning and vulnerable to
competitors are the major weakness as their range given is 1. While the other two
weakness which are specific target market and income dependence from North
America is the minor weakness for this company. The total score of IFE is 2.77 which
are more than the average of weighted score which are 2.5. From this IFE matrix, it
shows that Walt Disney company can be considered as a strong company strategic and
management among the other competitors.

2.4 External Analysis

External analysis can be defined as the method to the organization assessing the
changes due to the outside effect that could impact the organization’s operations. The other
definition is to examine the industry environment of the organization which are competitive
structure, competitive position, dynamics and its history (Corporate Finance Institute, 2020).

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The other name of external analysis is external audit. It enables the organization to identify
and evaluate the macro scale of changes such as technological changes, environmental
impacts, government policy and foreign competition. All of these will be categorized as the
opportunities and the threats in the organization in order to boost the profitability and the
organization growth. In order to evaluate the external analysis, the method used for the
organization to measure the scales is by External Factors Evaluation (EFE) Matrix.

2.4.1 External Factors Evaluation (EFE) Matrix

The External Factors Evaluation Matrix is a strategic analysis tools in order to

determine the external environment of the organization to illustrates both
opportunities and threats. The Matrix will identify the key externals of both
opportunities and threats that might be impact the organization. According to David
(2017), this method used are to summarize the information gained from company’s
external analyses. There are five steps to be taken which are (1) outline all the key
external factors which are, opportunities first followed by threats in specific
sequences, (2) assign the weight range of each factor from 0.0 (not important) to 1.0
(very important) and must be total in one of all the factors, (3) assign the respond
rating range of each factor from four (superior) to one (poor), (4) multiply the weight
and the rating range of each factor in order to know the weighted score and (5) add
all the weighted score of each variable in order to know the total weighted score
where the lowest is one, 2.5 is average and the highest not more than four.

Weight Rating
Key External Factor Weighted score
(0-1) (1-4)

Opportunities
1. IT advancement 0.18 3 0.54
2. Expansion of Disneyland Park 0.15 3 0.45
3. Job opportunities 0.15 4 0.60
4. New attraction and entertainment 0.10 2 0.20

Threats

1. Economic downturn 0.15 4 0.52

2. Strong competition 0.13 3 0.39

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 3. Content piracy 0.10 2 0.20
4. Changing taste and preferences 0.06 1 0.06
Total 1.00 2.96
Table 2.4.1: External Factors Evaluation Matrix of the Walt Disney Company

Based on table above, it outlines the identified of opportunities and threats of

the Walt Disney company. The new attraction and entertainment is the lowest
weighted score measured as at 0.20 meanwhile job opportunities is the highest
weighted score measured as at 0.60. Otherwise, in threats classification, the economic
downturn’s weighted score is 0.52, which is the highest. The strong competition’s
weighted score is 0.39 and the content piracy recorded at 0.20. The lowest weighted
score of threats is changing taste and preference as at 0.06 only. The total score of the
matrix is 2.96 which are indicates greater amount of average level of weighted score
of 2.5. It shows that the Walt Disney company has room to be more aware of the
external factors which are the opportunities and the threats.

2.5 Competitor Analysis (Competitive Profile Matrix)

A Competitive Profile Matrix (CPM) is an analytical tool that provides competitive

advantage information based on critical success factors and serves as the foundation for an
organization's strategy for comparing a company to the industry's major players.
(Bhattacharjee & Dey, 2015) The matrix identifies and compares a company's key competitors
based on the industry's critical success factors. The analysis also reveals a company's relative
strengths and weaknesses in comparison to its competitors, allowing a company to determine
which areas to improve and which areas to protect. (“Competitive Profile Matrix (CPM):
Guide - SM Insight,” 2021) According to the table, Walt Disney has five competitors: Time
Warner, News Corporation, Paramount Pictures, Carnival Corporation, and CBS Corporation.
Lucasfilm was excluded as a Walt Disney competitor because, on December 21, 2012,
Lucasfilm became a wholly owned subsidiary of Walt Disney Company. (Rai, 2021) The
Critical Success Factors (CFS) are key areas that must be performed at the highest level of
excellence and been organised by weight, which indicates how important that component is to
the company's performance and relevance to this industry. Product quality is the most
important aspect, accounting for 0.20 of the totals, followed by product diversity and
advertising, which account for 0.15, management, financial position, customer loyalty, global
expansion, and finally, customer loyalty, which accounts for 0.10 of the totals. These Critical

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Success Factors provide Walt Disney with a clear picture of their strengths and weaknesses in
comparison to their competitors.

Following the CPM calculations table 2.5 below, it is possible to conclude that Walt
Disney is the most successful and strongest firm in the industry with a total CPM of 3.65, and
that Walt Disney has indirectly become the benchmark company within its industry. Walt
Disney Company is currently ranked first in every CFS, despite only receiving ratings of 3 or
4. Product diversification, financial position, global expansion, and market capitalization are
the highest CFS ratings that only Walt Disney has. As a result, these CFS are just a few of
Walt Disney's strengths and opportunities that allow them to carry out the organization's
mission more prosperous in the future. For example, Walt Disney has the highest score in the
product diversification category, which accounts for 0.60, because they offer a wide range of
product divisions such as television, broadcasting, theme park resorts, cruise ships, consumer
products, publishing, foreign operations, and streaming media. In the meantime, most of
competitor firms do not have as many business and product diversifications as Walt Disney.
For example, Carnival Corporation's core business is solely focused on cruise operators, with
no product or business diversification undertaken or planned. In terms of financial position,
Walt Disney had the highest revenue in 2013 when compared to other competitors, with
$ 45.04 billion, and News Corporation had the lowest revenue with only $ 8.7 million. This
demonstrates Walt Disney's strong financial foundation and profitability, which may entice
many investors to invest in their stock market. Besides, Walt Disney in 2013 was also among
the highest market capitalization. The global expansion that has been made by Walt Disney as
they grew to become a true behemoth in the United States, they began to expand
internationally in the 1980s. For instance, in 1983 they opened their first international Disney
theme park, Tokyo Disneyland. Other than that, they began to broaden their influence in a
variety of areas by purchasing businesses and sports teams. (Robbins, 2014)

Among the competitors including Walt Disney, the weakest company is then given to
CBS Corporation with a total CPM of 2.10. The CBS Corporation has a number of flaws that
must be addressed in order for it to compete with its competitors. CBS Corporation currently
receives ratings of 1 or 2 in all CFS, with the exception of product quality, financial position,
and market capitalization, which receive ratings of 3. CBS Corporation received a rating of 1
for advertising and customer loyalty, which are the lowest aspects that have become their
weaknesses. CBS Corporation describes itself as a multinational media conglomerate

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headquartered in the United States, with primary interests in commercial broadcasting,
publishing, and television production. However, there was no clear disclosure regarding their
multinational business. As a result, we assume that their advertising strategy was insufficient
and did not reach the multinational level that they claimed. Advertising strategy is critical in
the broadcasting, publishing, and television production industries in order to attract and reach
audiences interested in their product line. As a result, there is a decrease in people's
engagement, a decrease in profits, a lack of brand recognition, and a decrease in market share.
Furthermore, as a result of the low advertising strategy, no customers are willing to interact
with or purchase from CBS Corporation on a regular basis. If customer loyalty is not
maintained, there will be no association of positive experiences with a brand and reducing the
likelihood of repeat purchases from that company. As a result, CBS Corporation should devise
a strategy for what they should pursue and diversify their product offerings in order to meet
consumer demand and increase their company's revenue on a global scale.

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 Walt Disney Time Warner News Corp Paramount Carnival Corp CBS Corp

Critical
Success Weight Rating Score Rating Score Rating Score Rating Score Rating Score Rating Score
Factor
Product
0.20 4 0.80 4 0.80 4 0.80 4 0.80 3 0.60 3 0.60
Quality
Product
0.15 4 0.60 3 0.45 2 0.30 2 0.30 1 0.15 2 0.30
Diversification

Advertising 0.15 3 0.45 3 0.45 2 0.30 3 0.45 1 0.15 1 0.15

Management 0.10 3 0.30 2 0.20 2 0.20 1 0.10 2 0.20 2 0.20

Financial
0.10 4 0.40 3 0.30 3 0.30 1 0.10 3 0.30 3 0.30
Position
Global
0.10 4 0.40 3 0.30 2 0.20 2 0.20 3 0.30 2 0.20
Expansion
Market
0.10 4 0.40 3 0.30 2 0.20 2 0.20 3 0.30 3 0.30
Capitalization
Customer
0.10 3 0.30 3 0.30 2 0.20 3 0.30 2 0.20 1 0.10
Loyalty
Total 1.00 3.65 3.10 2.50 2.40 2.20 2.10
Table 2.5: Competitive Profile Matrix of the Walt Disney Company

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3.0 SWOT ANALYSIS

A SWOT analysis is a compilation of Strength, weaknesses, opportunity and threat.

The function of SWOT analysis is to help the companies about the overview of internal
functions (Indeed Editorial Team, 2021). Most of business used SWOT analysis as their tool
for problem solving and identifying potential new business opportunities. The benefit of
SWOT analysis is it can help business to build on their companies’ strengths, address
weaknesses, take advantage of fresh opportunities, and limit business risks. Through this also,
it can help Walt Disney company to identify their company’s advantage and threats.

One of the strengths that are being measured in Walt Disney company is they have a
strong product portfolio. Walt Disney company have a strong product portfolio where they are
being watched by most of cable networks in the world such as broadcast television network
ABC and cable network like Disney Channel or ESPN (Latif, 2014). They have a biggest
audience that reach these cable network which the subscribers for ESPN are nearly of 300
million subscribers and 240 million subscribers for Disney Channel. Second strength of Walt
Disney company is regarding on brand reputation. Walt Disney has a strong brand reputation
such as Disney Channel, Disney Park resort and their movies from Disney studio. In the United
States, the Walt Disney brand has been well-known for more than 90 years, and it is well-
known around the world (Ovidijus Jurevicius, 2021). Moreover, their company logo and brand
name are easy to recognize. Next, proficient team also one of the strengths of Walt Disney
Company. Artists and graphic designers are an example of innovative and professional teams
in Disney’s company. The Disney’s professional team are come from a mix of experience for
a long year in a mass media industry. Furthermore, strength of Walt Disney company is they
diversified business. Media networks, parks and resorts, studio environments, consumer
goods, and interactive media are among the company's five divisions. These components of
the corporation operate online and offline, in a variety of economies, and generate their
revenue via a variety of business methods. Finally, the strength of localization of products.
Disney has started changing its products to fit into local tastes. In addition to the theme parks
and resorts, the company's movies and other products are made for the Chinese market in order
to get more people to visit their place (Ovidijus Jurevicius, 2021).

Besides the strength, Walt Disney company also have their weaknesses. One of the
weaknesses is high cost of production. The process to make a Disney’s movie required a high
cost to produce a quality of movie (Latif, 2014). The diversified business such theme park and

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resort required a higher cost of production to build it. Next, specific target market become the
weakness for Walt Disney company. Walt Disney Company focus are more to children and
family target market. As an example, they are producing Cartoon movie such Mickey Mouse,
Snow white and other cartoon movie that are suitable for children. Furthermore, Walt Disney
company has poor financial planning. Hulu and BAMtech streaming technology investments
cost Walt Disney nearly $1 billion in losses. the company's owner, decided to part ways with
Fox due to the company's inability to keep up with the digital streaming revolution (Business
Strategy Hub, 2022). Because Disney didn't see this, its billions of dollars are now stranded in
Fox. Moreover, the weakness of this company is vulnerable to competitors. Disney's inability
to sell and promote itself may make the company susceptible to competition. The only time
they utilize advertisements is when they are launching a new movie or product. Aside from
that, the majority of marketing is done visually, via cross-promotion and other means. The last
weakness of Walt Disney company is their income are dependence from North America.
Despite the fact that Disney has operations in over 200 countries, the company relies
significantly on the United States and Canada for its revenues. Over 70% of Disney's sales
originate from the United States (Ovidijus Jurevicius, 2021).

The Walt Disney company have their opportunities as well. The first opportunity of
the Walt Disney company is IT advancement. Due to IT advancement, Walt Disney Company
has published a puzzle mobile game named Where’s My water? And it became popular and
gone globally (The Walt Disney Company, 2012). The Walt Disney company should take this
opportunity to work on more mobile games that featuring with Disney Characters. The second
opportunity is the expansion of Disneyland Theme Park. At this point, Walt Disney company
should grow their business by opening their theme parks in Southeast Asia countries such as
Singapore and Malaysia. The third is a job opportunity. With the IT advancement, Walt Disney
company wanted to focus on creating more mobile games, where there are some vacancies for
the local people that were qualified to do the job such as Game Producer and Video Game
Designer. Last but not least, a new attraction and entertainment in Disneyland Theme Park.
As we know, their customer focus is more on family and children. The Walt Disney company
needs to broaden their customer focus to the adults as well by opening an extreme park for
more thrilling. It will increase the theme park profitability as well.

Last, the threat the first threat of the Walt Disney Company is economic downturn, and
it is also known as The Great Recession between 2007 and 2009. This led to the US currency

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 rate declining. It affects the economy as a whole and Walt Disney Company was not excluded
from being affected. The second threat is strong competition where Walt Disney Company
competes with Paramount Pictures and CBS Corp for TV entertainment and sports. The third

threat is content piracy. Content piracy can be defined as the unauthorized duplication of
copyrighted content (Times, 2021). So, due to technological advancement, people can access
pirated movies much more easily. The last threat of the Walt Disney Company is changing
taste and preference. Also, the Internet has brought a change in the way people consume media
and entertainment services where their preferences have changed drastically. People have
moved on from the traditional to the digital. This led to loss of subscriber base in Disney
Channel TV.

4.0 STRATEGY FORMULATION

4.1 Alternative Strategies (Matching Stage)

Opportunities Threats

Diversified Business
Brand Reputation
+ Existing strategies to be
+
Expansion of Disneyland continued
Strong Competition
Strengths Park
= Horizontal Integration
= Product Development

Quadrant II Quadrant I

Quadrant III Quadrant IV

High Cost of Production Specific Target Market

+ + New strategies to be
Weaknesses New Attraction and Changing Taste and started
Entertainment Preferences
= Related Diversification = Unrelated
Diversification
Table 4.1: Matching Stage of the Walt Disney Company

Based on the table 4.1 above, Quadrant I and Quadrant II's alternative strategies are
the existing strategies that will be maintained. Both of these strategies are classified as existing
strategies that can be continued as a result of Walt Disney's successful previous strategic

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activities. For instances, for alternative strategies of Quadrant I, Walt Disney has acquired
their competitor firm, Lucasfilm on 21 December 2012. Meanwhile, for Quadrant II, Walt
Disney built Euro Disneyland Paris and in 1998, Disney launched the first ship in their cruise
line in an effort to expand in the tourism industry (Robbins, 2014). Quadrant I are consisting
of strength and threat which are brand reputation and strong competition that will induce to
become horizontal integration. Horizontal integration is a one of the business strategies in
which a company acquires or merges with another operating company at the same level in the
same industry (“What Is Horizontal Integration?”, 2022). In Quadrant II, there are strength
and opportunity in the form of diversified business and the expansion of Disneyland Park,
which will result in product development. Product development strategy is critical because it
uses market research to develop a growth strategy for their diverse product line. This can help
Walt Disney overcome obstacles and concentrate on the most effective strategies. Making
plans for how to develop new products can also assist Walt Disney in adjusting existing
products and expanding their business (“What Is Product Development Strategy? |
Indeed.com,” 2022).

The new strategies that can be started will be based on the alternative strategies of
Quadrant III and Quadrant IV. Both of these strategies are classified as new strategies that can
be launched as a result of current changes consumer demands and preferences for a new
product from Walt Disney. For instance, Walt Disney currently produces Disney+ Hotstar,
which competes directly with Netflix in terms of online media streaming service. According
to Digital TV Research, Disney+ will be the most successful, surpassing Netflix by 2025.
Disney+ will add 140 million subscribers between 2021 and 2026, bringing its total to 284
million. In 2026, there will be approximately 121 million Disney+ subscribers (43 percent of
total) in the 13 Asian countries under the Hotstar brand (Szalai, 2021). This demonstrates that
Walt Disney has devised new strategies to counter the recent competitive pressure from the
other firm. Quadrant III are consisting of weakness and opportunity which are high cost of
production and new attraction and entertainment that will create to become related
diversification. Related diversification occurs when a company enters a new industry that
shares significant similarities with the company's current industry or industries (Adapted by
Reed Kennedy et al., 2020). According to Prahalad and Hamel (1990), some firms that engage
in related diversification seek to develop and exploit a core competency in order to achieve
greater success. A core competency is a skill set that is difficult for competitors to imitate, that
can be used in multiple businesses, and that contributes to the benefits enjoyed by customers

15
within each business (Prahalad & Hamel, 1990). Lastly, in Quadrant IV, there are weakness
and threat in the form of specific target and changing taste and preferences that will generate
to become unrelated diversification. Unrelated diversification refers to a company's activities
that are not related to its industry. According to Lichtenhaler (2005), an unrelated
diversification strategy entails diversifying into whatever industries and businesses hold the
promise of attractive financial gain, as well as pursuing strategic fit relationships that take a
back seat (Lichtenhaler, 2005).

4.2 Alternative Choices

The first alternative choice is horizontal integration, where a company seeking

ownership or increased control of a firm’s competitors such as mergers and acquisitions. In
other words, it is a takeover or acquisition of a related business in the same industry. When the
Walt Disney seeks to expand horizontally, their primary goal is to acquire a similar company
in the same industry. Other objectives are including growing in size, achieving economies of
scale, gaining market power over distributors and suppliers, improving product or service
differentiation, expanding the company's market or entering a new market (“Horizontal vs.
Vertical Integration: What’s the Difference?” 2022). As a result, the worth of horizontal
integration is it can reduce the number of competitors within the same industry by removing
Walt Disney's main rivals. This strategy will increase the market share and strengthens a Walt
Disney pricing power. Furthermore, the Walt Disney will have a larger customer base after
successfully acquiring a new organization and having direct access to the new organization's
larger customer base. On the other hand, there is also a downside that Walt Disney must bear
in mind, one of which is that it will limit the flexibility. The addition of more organizations,
personnel, and processes necessitates greater transparency and, as a result, greater
accountability and red tape, which can slow the rate of innovation or the process of trying to
introduce new products to the market. (Tutor2u, 2022) Nevertheless, Walt Disney is a
monopolistic entertainment company that has grown into one of the world's largest
entertainment empires (Pretto, 2021). They have a consistent and high revenue each fiscal year,
as well as enough capital and resources to expand their firm. As a result, it stands to reason that
Walt Disney could easily acquire the other competing companies.

The following alternative choice is product development, where the firm is seeks to
increase sales by improving or modifying present products or services or developing new
product by adding more features to the existing or services. The goal of product development

16
strategy is to gain a competitive advantage by positioning product offerings to drive business
goals such as sales growth, revenue, and profits (Carter, 2021). This strategy will assist the
Walt Disney in achieving business objectives such as expanding into new markets, selling more
to existing customers, or gaining business from competitors. A successful product development
strategy can boost revenue and profitability as well. Aside from that, by expanding and
introducing a new product to the customer especially existing customers, they are bound to be
excited and anxious to try out the Walt Disney's new attraction. That is the attitude of customers
have when a brand or a company have a track record of positive product development. Because
of Walt Disney focus on the innovation also becomes the focus of customers, they will be
willing to test new products, be first in line to purchase them, and support the Walt Disney’s
efforts (Gaille, 2016). Furthermore, when there is new product or service introduced, Walt
Disney will create more job opportunities in order to fully operating their product and services
in well process. Then, an increased employee earnings will result in increased consumer
spending, which benefits Walt Disney’s business that rely on consumer sales. However, there
are also few drawbacks of product development strategy that Walt Disney may faces which is
firstly, products can fail unexpectedly. A product can fail unexpectedly even after thousands
of hours of research and development process. If a product fails to perform as expected in the
general market, the anticipated profits can quickly turn into large unanticipated expenses
(Gaille, 2016). Aside from that, another potential disadvantage is that it is easy to have
unrealistic expectations for a product. When there are no quality benchmarks in place, the
product development process can produce unrealistic future expectations for Walt Disney. The
fact that a prototype works as designed does not imply that it can provide the expected value.
Walt Disney must consistently meet consumer value expectations, and reliable benchmarks
must be established to ensure this (Gaille, 2016). In short, very cautious planning is required
to reduce the risk of wrong decisions (“New Product Development and Introduction,” 2013).
The advantages and disadvantages of product development demonstrate that this strategy can
be risky, but it also can provide the Walt Disney with the opportunity to achieve greater success.
When approached methodically, the innovative results are frequently worth taking the risk of
potential error (Gaille, 2016).

The next alternative choice is related diversification, in which there is the adding of the
new related products and service into the business. In this strategy, it consists of the advantages,
disadvantages, limitations, and rationality towards the Walt Disney as the conglomerate
company at global. However, Disney needs this alternative strategy when they compete in both

17
slow and rapid industry. That is why the related diversification is one of the alternative
strategies choices that used and applied by the Disney company. The related diversification is
purposely to increase the customer engagement as Disney might probably adding the new
attractions and entertainment to the business and it will be one of their market strategies
towards enhancing the customer engagement in the entertainment world. Also, by providing
the new related products into the business, Disney would simultaneously provide the new job
employment as they need the workforce to run their entertainment and attractions such as the
parks and the resorts. The Disney needs the strong management team in arranging and
managing the new and related products and services because they will undergo the complex
process when introducing the new attractions and entertainment and they may run out of ideas
and creativity as they might probably adding the attractions and entertainment that have already
existed in the business. The company also could face the limitations towards this strategy in
which it is hard to find the suitable location of the new attractions and entertainment of the
business. Nonetheless, the new and related products can be offered at a highly competitive
prices and this is a point where it will help in boosting the Disney’s revenue.

The last alternative strategy choice is the unrelated diversification when adding the new
unrelated products or services into the business. This strategy helps Disney increase their
revenue and reduce risk of the business of Disney. Also, the unrelated diversification is the
effective marketing strategy and can help to increase the cultural targeting in the business.
When the Disney trying to specify their target market and embark to the new locality and
cultures, it takes a lot of courage and expertise to make it succeed. They may face the limitation
such as the language barriers, the limited target market which is only towards specific locals
only and they might have the difference and unique preference of taste according to the culture.
However, it might help if Disney has enough capital and managerial source to compete in the
industry and it should not be a big deal for Disney to embark to the new business at the new
locality. This strategy helps the Disney to boost their financial economies and Disney can have
the new taste and changes of marketing strategy if they embark to new and unrelated business.
The company might also face the uncertainties such as the uncertain future cashflow if the new
unrelated products or services of theirs are not into the likings of the target market. Thus, the
Disney needs to have the good ideas and strong rationality to use the strategy in the business.

18
 4.3 Decision Making Stage

The alternative strategies which suit the best for the Walt Disney is the horizontal
integration strategy. The horizontal integration strategy is seeking ownership or increased
control of a firm’s rivalry. The Walt Disney is the company that used to take over their
competitors since then. This happened because Disney wants to expand their business empire
throughout the world. The way for Disney to boost their profits and expand their market shares
through the merger and acquisition strategy. In 2006, the Walt Disney Company paid $7.4
billion for Pixar Animation Studios. Disney began as a children's and family-oriented
animation firm. With its existing operations, however, the entertainment behemoth was
experiencing market saturation as well as creative stagnation (Tarver, 2021). All of Disney's
acquisitions have proven to be profitable businesses with a competitive advantage that could
propel the company forward. Whether it's technology, intellectual properties, or delivery
channels, the majority of Disney's acquisitions have been in the Studio entertainment segment.
Disney emphasised the importance of progressing from strength to strength. The fact that these
buys brought in a lot of money just added to the allure. The market's reaction to Disney's
acquisition was overwhelmingly positive (Bamel, 2015).

5.0 STRATEGY IMPLEMENTATION

5.1 Execution

Based on the horizontal integration strategy, the implementation part is the important
part of the strategy. According to Bernard Reimann, the greatest strategy is doomed if it’s
implemented badly. This shows that, the implementation of the strategy needed to be done
accordingly so that the strategy will be implemented effectively. Firstly, the actions must be
taken from the responsible individuals, so in the case of the Disney’s horizontal integration
strategy, the individuals that are responsible to implement this is the board of directors and the
top-level management. Because in this case, it involves the performance of the human capital
which is the strategic leader would be the board of directors and top-level management. The
board of directors and the top-level managers are the individuals that help to develop and
execute the strategy within the company and they also the ones who have the emotional
intelligence and the interpersonal skills to work with others. The board of directors wants to
place a greater emphasis on management abilities and forward-thinking strategies that
maximise shareholder value, while spending less time on compliance issues. Furthermore, the

19
directors state that they have the necessary knowledge, skills, and substantive interaction with
management to contribute to the development of long-term strategy (Ovidiu Bordean, 2011).
Next, the actions to be taken by the board of directors is they responsible for approving a
company's strategic strategy, and potential acquisitions should be evaluated in the context of
that plan. The board of directors appoints the CEO and has sway over senior management
appointments. If the board wants Disney to grow through acquisitions, it must take the
necessary efforts to ensure that the management team includes people who have the abilities
to execute transactions and integrate newly acquired businesses. In term of the resources, the
board of directors has a strategic view of the company's financial and managerial resources,
and it should determine if a proposed transaction is the most efficient use of those resources.
Both financial and managerial resources is important towards the take overs of the firms and
Disney should aware that in the case of acquisitions.

5.2 Target Outcome

Disney aims to strengthen their market positions and increase their competitive
advantage in more business areas by applying the horizontal integration strategy. This is
because they want to be able to compete with other businesses in a variety of fields.
Furthermore, if the organization manage to solidify its market position, they will be able to
significantly boost their sales and profit growth (Bamel, Sushil, & Dhir, 2015). As a result,
they implement this strategy in order to preserve a long-term competitive advantage in the
market and establish a high likelihood of synergy. By acquiring other companies, Disney may
be able to expand its operations and achieve effective integration which will benefit the
company in the long run.

Besides, Disney plans to expand its direct-to-consumer offerings. This goal is to

connect directly with their viewers and entertain them by giving them more options and more
enjoyable experiences in using their services, regardless of where or when they wanted it
(Whitten, 2020). Furthermore, the organization intends to find new ways in producing
attractive content in order to build direct relationships with their customers worldwide. With
this, they wish to enhance Disney's development of movies, television shows and related
products. Therefore, this strategy will undoubtedly assist them in obtaining their desired
outcome and enable them to reach out to more individuals in key locations throughout the
world with their various world-class entertainment distribution channels.

20
 5.3 Actual Outcome

Pixar, Marvel Entertainment and Lucasfilm were among Disney's most successful
business acquisitions in the film industry, with Pixar in 2006, Marvel Entertainment in 2009,
and Lucasfilm in 2012. Walt Disney Company get to develop computer animation power and
distribution strengths by acquiring these companies, allowing them to remain competitive in
the animation market. In fact, they have grown into an international family entertainment and
media conglomerate that produces some of the most well-known characters and stories. As a
result, Disney has achieved their goal of strengthening its market presence in a variety of areas,
including children's films and television shows, interactive media, consumer products and
other segments (Latif, 2014).

The Walt Disney Company's purchase of 21st Century Fox in 2019 was also regarded
as one of the most significant acquisitions in history. The acquisition allows Disney to own
60% of Hulu, which could help them boost their revenue (Nuo Chen, 2021). Another major
transaction was Disney's acquisition of Capital Cities or ABC Inc, which gave them a 80%
stakes in ESPN (Lakritz, 2020). This became the inspiration for the company to enter the ABC
and ESPN broadcast and cable networks. By owning all the companies, Disney is capable in
producing more compelling high-quality content and giving more entertainment choices for
their customers and able to increase their international reach. So, Disney has achieved their
goal in expanding their direct-to-consumer offerings such as ESPN+ for sports fans, Hulu and
Disney+ for streaming and online services.

5.4 Issues

From the strategy chosen which horizontal strategies, we had been identified some
issues arose pertaining to the Disney’s merger and acquisition activities. The first issue is
Disney-Fox merger. The issue occurred when the Walt Disney company in bidding war with
the Comcast Corp in order to buy the 21st Century Fox Inc. It is also called as an acquisition
where it defined as one of the strategies that used to combine more than one companies into a
company in order to benefit its competitive advantage (Nuo Chen, 2021). The acquisition will
prove that the Walt Disney company as the market leader in the industry meanwhile, 21st
Century Fox intends to increase their shareholder value by downsizing the company (Simran
Ajay, 2019). As 21st Century Fox Inc is a global media and entertainment organization, they
currently diversified its business in four segments which are, (1) through cable network

21
programming that consist of the It entails the creation and distribution of programming
disseminated material, (2) by television which consist of the broadcasting network
programming in States, (3) through film entertainment where it consists of the creation of live-
action and animated motion pictures and (4) through corporate where it includes the overhead
costs and intercompany eliminations. The acquisition proposal from the Walt Disney company
to 21st Century Fox Inc when the Murdoch family wanted to sell the company for the good
price in order to find the additional funding of the organization. However, Comcast
interference made the Disney company reluctant to pursue its intention to buy 21st Century
Fox Inc. Comcast announced to use all its resources in order to bid for 21st Century Fox Inc
company and force Disney to raise its offer. So, from there starts the bidding war between
Disney company and Comcast company for the acquisition of 21st Century Fox Inc.

There is another issue arose that had been identified is Netflix-Disney+ Hotstar
competition. Disney is new into the streaming media industry, but they successfully
diversified its business into the industry. Disney+ Hotstar is a video-on-demand streaming that
dedicated to stream movies and shows from Disney, Marvels, Pixar, Star Wars and many
more. Disney+ Hotstar only available on devices can connect to the internet such as Smart
TV, laptop and smartphone. It provides the varieties of national geographics, live action and
animated original movies from the Walt Disney company (Disney Media & Entertainment
Distribution, n.d). However, there is the one streaming media that has been monopolized the
industry which is, Netflix. Netflix also provides a streaming service that also offers variety of
shows, movies, anime and more as Disney+ Hotstar did. Some people believed that the
contents provided by Netflix are more interesting compared to the Netflix Hotstar. Based on
survey respondents conducted, 38% of them chose Netflix as their number one favourite movie
streaming (Sherman, 2021). In their shareholder letter, Netflix has stated that they will
improve the services every day in order to gain the pleasure among the watcher so that Netflix
still number one people’s favourite streaming. Also, the chairman of Netflix stated that Disney
is their biggest rival in the industry. This can be proof that there is strong competition between
Disney+ Hotstar and Netflix in order to monopoly the industry.

22
6.0 STRATEGY EVALUATION

6.1 Quantitative Method

Quantitative methods are being using to evaluate the financial ratio in the company.
Besides, quantitative evaluation methods are being measured in a numerical value such the
earning per share, profit margin and sales growth. There are three strategies that can be used
to make a comparison which are comparing the performance of firm between certain period,
compare the company performance with competitors and lastly company can compare their
performance to industry averages.

Figure 6.1: The Walt Disney Company Quarter and Full Year Earnings for Fiscal 2013

Refer to the Figure 6.1 shows the company’s performance for quarter and year earning
of the Walt Disney company for 2012 and 2013. Based on the figure, it can be concluded that
the revenue for quarter and year earning are increasing which are shows the change of 7%.
Other than that, the quantitative methods also can be measured by earning per share. From the
figure also it shows that Walt Disney company’s earnings per share is increasing from 3.13 on
2012 to 3.38 on 2013. That shows that the earning per share is increase for 8% changes.
Through the measure of revenue and earnings per share, it shows that Walt Disney company
are strong and successful to maintain their financial performance in running their company.
Their products like parks and resort, media network and studio entertainment has increased
their revenue and get attraction for their customers and investors. It shows that their strength
of diversified business is helping them to increase their net income and revenue from 2012 to
2013.

23
 Other than measuring the company performance from year to year, the company also
can measure their performance by comparing with other competitors. One of the competitors
of Walt Disney company is News Corporation company. The figure below is the News
Corporation earning for 2013.

Figure 6.2: News Corporation Full Year Earnings for Fiscal 2013

Based on Figure 6.2, it shows that News corporation revenue for 2013 are 4,346
Dollars. While the Walt Disney revenue for 2013 is 45,041 Dollars. It is very huge range of
revenue between New Corporation and Walt Disney Company. From this, it shows that News
Corporation company are not a strong competitor for the Walt Disney company. While the net
income for News Corporation shows that the company are loss, but Walt Disney net income
is 6,136 Dollars which give the profit for their company. Through the qualitative method that
using a comparison between competitors, it provides the company on how to continues keep
their performance in order to ensure that they are being more than their competitors and to
evaluate the opportunities for their company. Furthermore, with the quantitative evaluation
strategy help company to recognize their performance and gap between their competitors.

6.2 Qualitative Method

The Walt Disney has identified the methods in order to attract their customer to come
again to their place. Walt Disney finds their qualitative performance is through the experience
of their customers. Due to the customer experience, it can help them to know their performance
of their service in their place. Through the feedback of the customer, the Walt Disney company
has successful in created their customer loyalty. Disney treats their customer like a VIP even
the customer is first time or a few times that makes they are different among the others. The

24
successful of company to customer loyalty is good for the company in order to help them
continuing their strategy evaluation. A good quality service makes a company increase their
customer loyalty. With the poor-quality services, it can give a negative impact for the company
towards the experience from their customer and it can affect the profits of the company.
According to Milman, customer is likely to experience a good customer service, the
environment and safety and security of the place. The Walt Disney Company are really care
about their customers feel as to ensure their customer are happy and can give a positive
experience towards the company.

Furthermore, the Walt Disney company are continuing their technology advancement. In
2013, Disney has introduced “MyMagic Plus program”. MagicBand is a new technology that
launched by Walt Disney which is a wristband that have a RFID technology and long-range
radio (Forbes, 2017). The bands functions as a hotel key, tickets and fast passes for customers.
The advancement of this technology will help the company to track where the customers and
what customers need. With the technology advancement, company can boost their
organizational productivity. The advance technology will help the company to smooth their
production as it can give benefit and profit towards the company. Moreover, with the
technology advancement, it can improve the customer satisfaction such like MagicBand
products that launched by the Walt Disney. The use of technology and new ideas in the value
creation system is very important to productivity, economic growth, wealth in the
socioeconomic environment, and the evolution of whole industries. Companies have to plan,
define, and carry out their strategy in a way that will help them build the skills and abilities
they need to meet their customers and other people's needs.

6.3 Corrective Actions

Regarding on the issue of Acquiring 21st Century Fox, the Walt Disney must revise
back their decision to acquire Fox. The company should revise back their strategy whether
21st Century Fox will give a long-term profit for them and their shareholder. The company
have to consider the situation whether they are suitable to merger the Fox during the instability
of economy global. The acquisition of 21st Century Fox will lower the earnings per share for
the Walt Disney Company in short term period. With the acquisition, Disney diluted
shareholders by nearly 20%. Because of the high price paid, there is a significant danger that
this transaction may harm Disney shareholders, at least in the short-term period (Trey

25
Henninger, 2019). Walt Disney company should revise their plan and they must ensure that
with acquiring 21st Century Fox didn’t give a negative impact towards their company.

The corrective action that can be taken by the Walt Disney company regarding on the
issue of Disney+ is the company can revise back their products by updating the price of
products release. Disney+ and Netflix are being a competitor as both of these products are
serving a streaming service such on-demand movie and TV show for their customers (Cord
Cutters News, 2021). The price of Disney+ is a bit pricey than Netflix. For an example in
Malaysia, the price for three-months subscription for Disney+ is RM 54.90 while the price for
Netflix monthly subscription only RM 55.00. Why we mentioned Netflix streaming videos
are more cheaper compared to the Disney+ Hotstar? It is because Netflix has main account
which can be divided into four accounts for each person. To be divided into four, the
subscribers pay only RM 13.75 per month meanwhile, the subscribers of Disney+ Hotstar need
to pay RM 18.30 per month for three-months subscription. Thus, many of the subscribers
prefer the features of Netflix more. The Walt Disney can take a corrective action which also
possible for the corporation to adjust their processes in such a way that they can somewhat
lower their pricing while maintaining quality at the same time. Reduced pricing while
maintaining quality will aid in retaining current customers and regaining those lost to
competitors. During the inflation issue, Disney should have a revised back their strategy
activities that can increase back on their profit.

6.4 Revised SWOT Analysis

We identified that in previous SWOT analysis of the Walt Disney Company has been
revised due to current issues. IT advancement is no longer classified as opportunities and it
will be placed under strength classification. It is called the MagicBand, the waterproof
wristband that can easily assessible to a sensor named as touch point, which proof of the IT
advancement where the Disney company used the technology to enter the theme park and
water parks, to buy the foods and merchandises and to unlock the Disney hotel’s door (Abell,
2020). Secondly, the diversified business is no longer classified as strength and it will be
classified as opportunities otherwise. As previous discussion, Disney+ Hotstar is the
opportunity for the Walt Disney company to diversified its business. The Disney Walt
company is new into the online streaming industry, which it is a good move in to the Disney
lover. Every Disney Channel show, their famous movies, animated shorts, Pixar movies, Star
Wars, all the things we grew up with in a central place (Upland, 2019). Thirdly, the job

26
opportunities are no longer classified as opportunities, instead it will be classified as threats.
Due to Coronavirus outbreak in the worldwide, the Walt Disney company laid off amounted
of 28,000 employees across its parks, experiences and its consumer products segments
(Whitten, 2020). Then, the Disney company announced that they will increase the amount of
laid off employees from 28,000 to 32,000 employees. This can be a proof that the Walt Disney
company also been impacted badly because of the closure of the cinemas and theme parks.

7.0 CONCLUSION

The Walt Disney Company is actually a company with a high potential in their strategic
management and has quite a strong and advanced position based on the CPM, SWOT
statistical and intuitionally. As we know, the Walt Disney Company is one of the world’s
most admired company because of their creative entertainment and high gainer in the term of
profit especially. In the humblest opinion, The Walt Disney can actually go further and beyond
extra in the business if they are maintaining their energy of being creative and improving the
strategic management from all aspects of the businesses as among the largest conglomerate in
the world. The Walt Disney has the bigger potential in the entertainment, film and media
industry and can go beyond ordinary as the conglomerate. The right strategy could help Disney
to achieve their profitable goals and become the biggest empire in the business.

27
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