Professional Documents
Culture Documents
challenges
Walt Disney
Mission Statements Evaluation
Product oriented
statement
Focus on what
products to sell
and what
services to offer
rather than on
how to satisfy
customer needs
Lack of 5
essential
components:
1.
2.
3.
4.
Customers
Technology
Philosophy
Concern for
public
image
5. Employees
Walt Disney
Recommended Vision
Walt Disney
Overview
Segment
Revenues
12
Revenues
13
Media
Networks
Growth
5%
Parks &
Resorts
12,920 mil.
$
14,087 mil.
$
9%
Walt Disney
Studios
5,825 mil. $
5,979 mil. $
3%
Disney
Consumer
Products
3,252 mil. $
3,555 mil. $
9%
Disney
Interactive
845 mil. $
1,064 mil. $
26%
Walt Disney
Corporate Strategies
PRODUCTS
Existing
Market penetration
Existing
MARKET
S
Targeted market
segmentation through
acquisitions
Ne
Newwproducts
Related Diversification
Diversification in
branding
Vertical & Horizontal
integration
New
Market development
Foreign Outsourcing
Direct Investment
Licensing
Conglomerate
diversification
Walt Disney
Grand Strategy
RAPID MARKET GROWTH
WEAK COMPETITIVE
POSITION
Market
development
Related
Diversification
Vertical
Integration
STRONG
COMPETITIVE
Horizontal
POSITION
Integration
Market
penetration
Walt Disney
PEST Analysis
POLITICAL
The animation industry enjoys tax benefits.
Political differences
International Trade.
ECONOMIC
are
an
obstacle
to
Walt Disney
PEST Analysis
SOCIAL
Recent social trend in smartphones, tablets and apps.
Different local cultures, as well as stories and history of
the host place.
Changes in customers preferences for entertainment.
Significant role of kids and familys entertainment.
TECHNOLOGICAL
Technological advancements are having a profound
effect on the worlds media.
Changes in technology affect demand for entertainment
products as well as the cost of production.
Walt Disney
Porters 5 Forces Analysis
THREAT OF NEW ENTRANTS - (MEDIUM)
Even though there are major players, still smaller
players with lower structures can enter the market.
Walt Disney
Porters 5 Forces Analysis
Brand Value
*http://brandirectory.com/league_tables/table/global-
Walt Disney
Financial State
Performance Indicators
Current Stock Price
$ 80.07
Consolidated Revenues
$ 45,041 millions
Net Income
$ 6,136 millions
Return on Equity
14.41
11.24
21.29
$ 0.60 (2012)
Market Share on
Studio Entertainment Industry
Globally
$ 5,03 billion
Overseas
$ 3,14 billion
U.S.
$ 1,89 billion
Globally
$ 4,68 billion
Overseas
$ 3 billion
U.S.
$ 1,68 billion
Globally
$ 3,68 billion
Overseas
$ 2,26 billion
U.S.
$ 1,42 billion
WARNER
BROS
UNIVERSAL
CRITICAL
SUCCESS
FACTORS
WEIGH
T
RATING
Advertising
.12
.48
.48
.36
Market
Share
.10
.30
.40
.20
Financial
Position
.10
.40
.30
.20
Manageme
nt
.08
.24
.24
.24
Global
Expansion
.10
.40
.40
.40
Technology
.15
.45
.60
.45
Customers
Loyalty
.10
.30
.30
.20
Brand
Awareness
.15
.60
.60
.45
Creativity
.10
.40
.40
.40
TOTAL
1.00
1-4
SCORE
3.57
RATING
1-4
SCORE
3.72
RATING
1-4
SCORE
2.90
Walt Disney
SWOT Analysis
Brand
Reputation
Highly Diversified
Portfolio
Strategic & Tactical
Acquisitions
Global Expansion &
Alliances
Economies of Scope
Top Management
Loyal Customers
Strong Financial
Position
Benefits
From IT
Advances & Mobile
Gaming
Build A More EcoFriendly Image
Further expansion in
new emerging
economies
Release of New
High Cost of
Operations
Concentration of
Revenues In North
America
Approaches Antitrust
Law Limits
Financial Rcession
Increasing Piracy
Strong Competition
Continous Need For
Technological Update
Change in Consumers
Preferences & Tastes
Negative Publicity
Due to
Unexpected
Event
WEIGHT
RATING
.20
.60
.05
.15
.15
.30
.05
.20
Financial Recession
.15
.45
Increasing Piracy
.10
.20
Strong Competition
.10
.30
.10
.30
.05
.10
.05
.15
TOTAL
1.00
SCORE
OPPORTUNITIES
THREATS
2.75
RATING
WEIGHTED SCORE
Brand Reputation
.15
.60
Highly Diversified
Portfolio
.15
.60
.08
.24
.05
.15
Economies of Scope
.08
.24
Top Management
.07
.21
Loyal Customers
.10
.40
Strong Financial
Position
.05
.15
STRENGTHS
RATING
WEIGHTED SCORE
High Cost of
Operations
.15
.30
Concentration of
Revenues in Us &
Canada
.08
.16
Approaches Antitrust
Law Limits
.04
.04
WEAKNESSES
TOTAL
1.00
3.0
9
Strengths
Walt Disney
SWOT
Combined Strategies
Opportunities
1.
2.
3.
4.
5.
6.
7.
8.
Weaknesses
Brand Reputation
Highly Diversified Portfolio
Strategic & Tactical Acquisitions 1.
Global Expansion & Alliances
2.
Economies of Scope
Top Management
3.
Loyal Customers
Strong Financial Position
SO - Strategies
WO - Strategies
1.
Threats
1.
2.
3.
4.
5.
6.
Financial Rcession
Increasing Piracy
Strong Competition
Continous Need For
Technological Update
Change in Consumers
Preferences & Tastes
Negative Publicity Due to
Unexpected Event
ST - Strategies
7-1: Offer discounts to all members
of Disney fun club
3,4-3: Expansion in Brazil market
through alliances and synergies
8-4: Invest on R&D for one high
tech department
6-5: Monthly consumer research
via online polls
WT - Strategies
Expansion in
Develop mobile
Brazil market
game applications
through alliances
with Disney
and synergies
characters
QUANTITA
PLANNI MATRI
STRATE
TIVE
NG
X
GIC
Key Factors
Weight
AS
TAS
AS
TAS
0.20
0.05
1
-
0.20
-
4
-
0.80
-
0.15
0.60
0.45
0.05
0.10
0.15
0.15
0.10
2
-
0.30
-
3
-
0.45
-
0.10
0.10
0.05
0.05
1.00
2
1
0.20
0.10
1
4
0.10
0.40
0.15
0.15
0.08
4
4
3
0.60
0.60
0.24
2
3
2
0.30
0.45
0.16
0.05
0.08
0.07
0.10
4
3
4
2
0.20
0.24
0.28
0.20
3
2
2
4
0.15
0.16
0.14
0.40
0.05
0.15
0.05
Opportunities
1. Mobile game sectors could grow at a compound annual growth rate of
23,6 % by 2017
2. Decrease in environmental impact by 50%
3. Emerging markets offer a cost advantage in terms of salaries and cost
of operations.
4. Extension of R&D efforts in order to release new successful stories and
characters.
Threats
1. 12% decline in average total expenditures in entertainment in USA
from 2008 to 2010.
2. Piracy costs in the US economy every year $ 250 billion.
3. Walt Disneys market share in Studio Entertainment segment is
16,62%
4. Continuous need for technological update
5. Change in consumer preferences and tastes
6. Negative publicity due to unexpected event
Subtotal
Strengths
1. 27th position in the rank of the Best Global Brands.
2. Highly diversified portfolio
3. Acquisition of Marvel, ABC, Pixar, Lucas Film, ESPN etc
4. Almost 30% of revenues from operations in Europe, Asia Pacific, Latin
America and other
5. Economies of Scope
6. Top Management follows four core concepts (3Ds+B) from 1922
7. Customers loyalty
8. Strong financial position: $7,370m intangible assets and $27,324m
goodwill for FY 2013
Implementing Strategy
Preparation of the appropriate
budget.
Allocation of personnel.
Communication of the strategic
vision, the strategic themes and their
role to the employees.
Use of presentations, workshops,
meetings, frequent updates.
Evaluation of Strategy
source: www.digi-capital.com
source: www.digi-capital.com
source: www.digi-capital.com
Evaluation of Strategy
Rumelts Criteria
The recommended strategy is:
consistent
It will be developed by the existing Interactive Department so
that interdepartmental disorder is avoided.
consonant
It will be an adaptive response to the recent social trend for
mobile games applications.
feasible
Disneys financial state can support the recommended strategy
which will result in the companys growth in the short-term.