Disney Analysis: Strengths
Disney Company is the leading global media enterprise and entertainment company in the United States. It is divided into various segments dealing with specific functions. Disney Company has a well-initiated strategy that propels it over other competitors. The following analysis will examine the strengths that have positively influenced the operations of the company
First, the Disney Company has numerous internal factors that positively influence its operations.
To begin with, the Company has a reputable brand that enjoys global recognition (Abubakar & Bello, 2013). This status promotes efficiency and reliability on its management operations (David & David, 2016). It is internationally known that the Disney parks are the best in the provision of entertainment settings.
Secondly, its popularity is boosted by the existence of many entertainment companies under its umbrella.
It also has many assets such as amusement parks, several channels, and stores in different parts of the world. This huge inventory enables the company to make several acquisitions whenever the management considers such ventures as potential for company growth.
Thirdly, another strength enjoyed by this company is its goodwill (David & David, 2016).
This refers to an intangible asset that generates revenue towards the company in different parts of the world. Its diversity of services also contributes towards its strong position in the world. Other than entertainment, it also provides clothes, toys, and plates among many others.
The strengths of Disney company rely on its strong products like television network Fourthly, ESPN is the leading cable network in the world.
It has approximately 300 million subscribers across the globe. These products portfolio gives the company a competitive advantage over other competitors in the same industry. The brands of Disney Company have been known in the United States and other parts of the world for more than 90 years (Abubakar & Bello, 2013). This has made it popular among people in the U.S[“Write my essay for me?” Get help here.]
Fifthly, Disney Company has remained strong and competitive in the market due to its strong policies against piracy.
The company has formulated strong policies to minimize and, if possible, eliminate piracy (Abubakar & Bello, 2013). There is little evidence pointing to piracy incidences regarding the company’s products and brands. Privacy cases result in recurring lawsuits that are quite costly to any firm. Therefore, it is a positive step that the company has taken to ensure that no incidents of piracy are reported on its products.
Additionally, enforcing laws and regulations touching on intellectual property rights have been a success in some countries, thus elevating costs for the Disney Company and enhancing profitability.
Unauthorized use of intellectual property not only has posed a challenge to many companies but the media industry at large. Intellectual property right holders suffer in the long run. Advancements in technology permitting faster transmission of copyrighted material, therefore the laws help the company to maximize its revenues. Technological advancements take place on the Internet as it serves as a platform where such exchanges occur. It thus becomes difficult for consumers to buy DVDs if they could easily watch their desired content online. To counter this problem, the company has ensured that intellectual property rights are necessary to its success (Gershon, 2013).
The seventh strength entails the company’s marketing strategy.
The Disney Company has ensured that it implements an effective marketing strategy that will enable it to control the North American markets. It depends on, to a large extent, the North American market that provides almost 70 of her revenue (David & David, 2016). In comparison to other media entertainment providers, their share of income from other countries balances with the proportion from the U.S markets. If there were to change in the North American market that disfavor economic gains, the Disney Company would be adversely affected. With this marketing plan, therefore, the company has been able to overcome unhealthy competition from competitors.
Next, to respond to the digital transformation, Disney Company has integrated digital advancement into their marketing strategies in dealing with business challenges.
The company has improved its customers’ experience through the use of digital transformation strategy (Abubakar & Bello, 2013). It is a significant boost to any company because it has enabled Disney Company to overrun its agile competitors.
The ninth strength entails the company’s organizational structure.
Initiating and implementing a digital transformation approach in a company is a complex task that needs resources. Many companies try to start the process but fail to integrate it through all departments because of poor planning and lack of enough resources (David & David, 2016). Therefore, Disney Company has incorporated all the hierarchical structures within the company ensuring that the company’s objectives are achieved. [Need an essay writing service? Find help here.]
The company’s eleventh strength lies in its diversification.
Through diversified businesses and localization of products, the Disney Company’s operations are not affected by both internal and external environmental changes. It has different segments that operate independently in the market (David & David, 2016). The localization of products enables the company to make products that match the demands and preferences of the local people. For instance, some movies are adapted for Asian market to attract more customers.
The company is financially strong. Apart from generating a huge and steady cash flow, Lastly, Disney Company has one of the strongest balance sheets in the corporate world.
As of 2nd April, 2016, it had an approximated $ 5 billion liquid cash and its debt ratio stood at only 30% of its operating capital. In short, the company’s financials are rated at A++ according to the latest Value Line Investment Survey (Dalavagas, 2016). These factors have enabled it to consistently acquire more assets and other smaller companies further enriching its financial base. This has also enabled it to pay an attractive dividend to its stakeholders. Further, this factor has enabled the company to expand globally, especially in Asia, over the years. [Click Essay Writer to order your essay]
Abubakar, N., & Bello, G. B. (2013). Strengths, weaknesses, opportunities and threats (SWOT) analysis on globacom Ltd. Int. J. Inf. Technol. Bus. Manag, 16(1), 83-91.
Dalavagas, S. (2016, July 11). Disney: A Short SWOT Analysis. Value Line.
David, F., & David, F. R. (2016). Strategic Management: A Competitive Advantage Approach, Concepts and Cases. Upper Saddle River, NJ: Pearson Publishers
Gershon, R. A. (2013). Media, telecommunications, and business strategy. London: Routledge.