Walt Disney Company



Walt Disney Company

Introduction

Impact of globalization and technology on Walt Disney

A technique that provides escalating opportunities of enhancing relationship and mobility, not only in the world market, but also in business environment that is moving from national to international market (Ales & Karel, 2012). Moreover, enhancement in the technology has improved the process of communication, travelling and thus has made the concept of globalization more simple and easy to understand. In modern era, every small and large company is striving hard to expand their business into the global context, so that they can sustain their position in the market place, and can effectively compete with their competitors.

Walt Disney is known as the strongest and powerful media and entertainment company, which is operating across the globe, and with broad range of quality products and loyal customers, the company has able to create an unmatchable niche in the market. The company for the expansion of its business chooses countries with large population, stable economy, and strong awareness of company products.

Over the years, Walt Disney has expanded its business operations in numerous countries of the globe such as (in year 2001 company opens Tokyo Disney Sea in Japan, in year 2005 company initiated Disneyland at Hong Kong, year 2009 company launches Disney XD a new and unique cable network, and others)(Bratianu & Balanescu, 2008). Because of globalization, company has witnessed comprehensive increase in its sales, profitability, customer pool, labor, enhancement in technology and others (Walt Disney, 2011).

In addition to this, with globalization, company has able to improve its communication network across all stakeholders, and shareholders that have played a major role in the success of the company. For example, company latest movie, which was produced using 4D technology, has done a record-breaking business within 15 days of its release in USA, and have able to win thousands of accolades from valuable customers. Thus, it could be argued that both globalization and technology have played a comprehensive role in enhancing the position of the company in the industry (Heeks, 2002).

Industrial organization model and Disney's return

Multinational firms and other large organization uses industrial organizational model to enhance and maintain their stake in this competitive market. According to this model, there are few firms with limited competitions, limited production and transaction cost, entre barriers and others. Walt Disney is the largest and strongest company of entertainment industry that has able to sustain its market position since its incorporation. However, by implementing industrial organization model, company can effectively earn above average return. For instance, since the competition level in the market is very low company can effectively launch new products, and can easily market its product and cartoons using unique sources (Sturgeon, 2002). In addition to this, company can increase its return by raising high entry barriers for new firms thus eliminating the competition level.

In addition to this, Walt Disney can increase above average return by implementing resource-based model within the organization. According to this model, company needs to use its available resources ...