Disney Swot Analysis
Walt Disney SWOT Analysis
Strengths
Diversified Product. The number one strength that the Walt Disney Company has to offer is their diversified products, such as: multiple media networks, parks and resorts that are located in four countries, a variety of studio entertainment, consumer products and interactive media.
Brand reputation. Walt Disney brand was founded 90 years ago in United States and has since become recognized worldwide, predominantly due to the Walt Disney Theme Parks and Resorts and the Disney Channel. Since the beginning, the company has been perceived as the top competitor in family entertainment, Mickey Mouse for example has become one of the most recognizable cartoon characters in the world.
Acquisitions. The Walt Disney Company has acquired Pixar Animation Studios, Touchstone Pictures, Lucas Films, Marvel Entertainment, ABC Network, and also owns majority share in numerous other companies such as Hulu and ESPN. The number of companies who have had as much success in purchasing profitable acquisitions as Disney is very limited. Disney’s competency in acquisitions only continues to strengthen the company and allow for an even more diversified portfolio.
Weaknesses
Declining DVD Market. In the United States, purchasing DVDs are becoming more obsolete as inexpensive rental kiosks and alternative media outlets are becoming more common. In fact, Disney’s Home Entertainment revenues declined 9% in 2012 and in April 2013 Disney cut 2% (150 positions) of the studio division’s jobs as a result of the continuing decline.
Country Research. Although Walt Disney is an incredibly diverse company that is located around the world, they make a majority of their profits from the United States, about 70% in fact. This could have a lot to do with not fully understanding the demographics of the countries that they are penetrating, such as the Paris theme park where they didn’t sell wine at their amusement park which resulted in low ticket sales.
Strengths
Diversified Product. The number one strength that the Walt Disney Company has to offer is their diversified products, such as: multiple media networks, parks and resorts that are located in four countries, a variety of studio entertainment, consumer products and interactive media.
Brand reputation. Walt Disney brand was founded 90 years ago in United States and has since become recognized worldwide, predominantly due to the Walt Disney Theme Parks and Resorts and the Disney Channel. Since the beginning, the company has been perceived as the top competitor in family entertainment, Mickey Mouse for example has become one of the most recognizable cartoon characters in the world.
Acquisitions. The Walt Disney Company has acquired Pixar Animation Studios, Touchstone Pictures, Lucas Films, Marvel Entertainment, ABC Network, and also owns majority share in numerous other companies such as Hulu and ESPN. The number of companies who have had as much success in purchasing profitable acquisitions as Disney is very limited. Disney’s competency in acquisitions only continues to strengthen the company and allow for an even more diversified portfolio.
Weaknesses
Declining DVD Market. In the United States, purchasing DVDs are becoming more obsolete as inexpensive rental kiosks and alternative media outlets are becoming more common. In fact, Disney’s Home Entertainment revenues declined 9% in 2012 and in April 2013 Disney cut 2% (150 positions) of the studio division’s jobs as a result of the continuing decline.
Country Research. Although Walt Disney is an incredibly diverse company that is located around the world, they make a majority of their profits from the United States, about 70% in fact. This could have a lot to do with not fully understanding the demographics of the countries that they are penetrating, such as the Paris theme park where they didn’t sell wine at their amusement park which resulted in low ticket sales.