The below report is a detail strategic analysis of Walt Disney Company. The report includes the Company analysis, business overview, internal strengths and weaknesses, SWOT analysis, industry analysis and different strategies implemented by Walt Disney. In the end there are valuable recommendations for the business to flourish and grow more.
Introduction2
Mission Statement of Disney3
Business Analysis3
Company Profile3
Objectives4
Macroeconomic and Industry Analysis5
Company Analysis and Major Product Prospects6
SWOT Analysis8
Strengths8
Weaknesses9
Opportunities9
Threats9
Recommended Strategies and Objectives10
Strategy Implementation11
Recommendation12
Short-Term Goals12
Long-Term Goals13
Implementation15
Parks and Resorts15
Media Networks Broadcasting16
Studio Entertainment16
Disney Consumer Products17
Work Cited19
Walt Disney: Analysis
Introduction
The Walt Disney Company represents a truly immense organization composed of four strategic business units (SBUs) which, with the consideration of the consolidated revenue, represented roughly a whopping 35.5 billion dollars in 2007. The four SBUs are Disney Consumer Products, Studio Entertainment, Parks and Resorts, and Media Networks Broadcasting , and these can be further subdivided into 28 categories and are composed of a plethora of brands. The only two fundamental commonalities that can be deduced upon inspection of the entirety of the Walt Disney Company's holdings are entertainment and information. Every business activity the organization is engaged in is related in some manner to providing its consumer base entertainment and/or information.
Despite the two commonalities of the Walt Disney Company's activities, there exists a tremendous spectrum of variety in its operations. One of the growth strategies that have helped the conglomeration reach its current level of success is the fact that the organization has expanded, both vertically and horizontally, into new markets by targeted segmentation. In most cases, it reaches these market segments with an acquired brand, such as ESPN, ABC, and Miramax Films. Furthermore, it is only through the diversification in branding that Disney has grown simply because the children's brand is comparatively limited in terms of the target demographic. It is also the same diversity that minimizes the systemic risk involved with operating in too narrow of a portfolio.
Mission Statement of Disney
Walt Disney's does not have a published vision statement. However, their current mission statement can be found on their website (The Walt Disney Company, n.d.). The current mission statement reads as follows:
“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”.
The mission statement is subject to criticism and seems almost as if it is outdated. For example, Walt Disney is already one of the world's leading producers of the goods and services it markets. Therefore, there is no direction or purpose inherent in this statement other than the maintenance of its current position. Furthermore, Disney's Media Networks accounts for the largest revenue generator (43%) among different SBUs. However, it almost seems as if the role of information provider is somewhat downplayed by the restating of their dedication to entertainment in the second part of the mission statement.