INTERNAL AND EXTERNAL FACTORS

Internal and External Factors



Table of contents

Executive Summary3

Background of company4

Task 14

Internal & external factor analysis4

SWOT analysis12

Strengths13

Weaknesses15

Opportunities16

Improvement of customer relations strategy16

Advertising Growth16

Differentiation16

The further introduction of ICT technologies17

Superior market segmentation17

Threats18

Economic conditions18

Task 219

Political factors19

Technological factors21

Environmental factors22

Porter's Five forces model22

Adopted from Porter (1990)22

New entrants22

Buyers23

Substitutes23

Suppliers24

Competitors24

Conclusion25

References28

Internal and External Factors

Executive Summary

Walt Disney is a developer, producer and worldwide distributor of feature films and television programs, cable network programming and character-based merchandise. Besides, its theme parks are the most popular in the world. The current forces in the market create certain challenges for future success of the company's development.

The presents analysis starts with the discussion of current environmental and industry factors. This analysis produces the holistic view of the macro factors that affect the industry players and the company.

The second step comes to the analysis of the business environment competitive environment and the way the company develops and maintains its competitive advantage. This analysis creates a picture of internal capabilities of the companies. Basing on the evaluation of external and internal factors the analysis of strengths and weaknesses is delivered. It creates a framework for devising possible strategic intent of the company and identifies possible vulnerable points that can affect the feasibility of the strategy. Basing on the analysis of the environmental factors and company's capabilities the paper reviews current opportunities and threats.

Background of company

The Walt Disney Company is one of the largest media and entertainment corporations in the world. Disney is able to create sustainable profits due to its heterogeneity, inimitability, co-specialization and immense foresight. It also successfully uses synergy to create value across its many business units. After its founder Walter Disney's death, the company started to lose its ground and performance declined. Michael Eisner became CEO in 1984, and his strategy of expansion and diversification successfully rejuvenated Disney. Over the past 15 years, Disney seemed to be growing for the sake of growth and many problems aroused. It is important for Disney to refocus on its corporate value, and manage its brand, creativity and synergies.

Task 1

Internal & external factor analysis The Disney Corporation is a leading diversified international family entertainment and media enterprise with five business segments: media networks, parks and resorts, studio entertainment, consumer products and interactive media. (Disney Corporate, 2009). This company did not become one of the leading corporations in the world without hard work, an extreme dedication to the mission and core values of the organization, and the successful application of the four functions of management: planning, organizing, leading, and controlling. Many internal and external factors may have a direct impact on the four functions of management like: globalization, ethics, and innovation.

An internal factor has to do with the strengths and weaknesses in an internal organization while an external factor refers to the opportunity or threats presented by the external environment. A multinational corporation like Disney faces many internal weaknesses and strengths. Disney's main strengths consist of its resources, experience in their line of business, and its low cost ...