SWOT analysis as a part of business analysis plays significant role to get knowledge about a particular organization. By conducting SWOT analysis, an organization may improve its effectiveness through strengthening its current status, grabbing opportunities and reducing weaknesses and protecting business from threats (Hitt, Ireland & Hoskisson, 2008). In addition to this, SWOT analysis is quite appropriate to make decision to invest in a particular company by an investor. Being a mutual fund manager, this paper will discuss about SWOT analysis of Walt Disney for getting clarity about investmentdecision. In context of SWOT analysis, key strengths, weaknesses, opportunities and threats of Walt Disney would be presented to get clarity about the company's current position. It would be quite effective to mutual fund manager to make investment decision for Walt Disney. SWOT Analysis
Walt Disney is one of the diversified well-knownbrands of Entertainment Company. Itdeals in different segments of entertainment industry in terms ofanimated films, theme parks, resorts and studios etc. (The Walt Disney Company, 2012).In context of Walt- Disney, several strengths, weaknesses, opportunities and threats are associated with the company that are presented as below: Strengths: Walt Disney is a well-known brand of entertainment industry that has unique positioning around the world. It is the key strength of the company as global customers know the company for innovation and creativity (Ungson& Wong, 2008). At the same time, the company has portfolio of diversified products and services as it deals in studios, animated films, theme parks and resorts, media networks and consumer products etc. (Grewal& Levy, 2008).With the help of diversified products and services, the company is able to generate broad and diversified revenue base by dealing in differentportfolio of products and services (Krasniewicz, 2010). The diversified products and services also strengthen to the company as the availability of diverse products and services lead to reduce risks. Along with this, it is quite appropriate to increase customer base and market sharethrough covering diverse customers. The acquisition of Pixer Animation Studios has also strengthened to Walt Disney to make leader in the field of animated film (Grewal& Levy, 2008).Additionally, the optimization of innovative and latent technologies or imagination cum engineering is the key strength of the company that has led to create unique positioning of the company around the globein terms of a joyful entertainment place or product. The acquisition and merger also strengthen to the company as it improves its efficacy in a particular entertainment area (Barney, 2007). Instead of this, it also helps in reducing the adverse impact of competition as by acquiring leading firms, the company may increase market share, customer base and profitability. Weaknesses:Despite having strong brand image, well-known brands, portfolio of diversified products & services, use of innovative, creative and latent technologies, the company also lacks in several areas that affect organizational effectiveness. The interdependency of its products on each otheris the key weaken area of the company.It may be known as domino effect, in which sales of a particular product falls then sale of other product would be fall. In context of the company, the sales of consumer products depend on its animated films and studio product & service. In case of unsuccessful movie, the sales of merchandise products would be decline(Grewal& Levy, 2008). Over reliance on relationships is also the weak area of the company that limits its effectiveness. It is because the expansion of its distribution network is heavily depended on its cable operators. Without them, the company could not sustain the benefits of continued growth. The natural seasonal fluctuation also affects the business operations of Walt Disney as the...
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