SWOT Analysis of Walt Disney
SWOT Analysis of Walt Disney
Strength
Brand Image
Walt Disney was ranked 8th in the Top 100 Global Brands, it’s among the popular brand names in the world that has a high brand awareness among people. In 1950’s , Disney started building its brand image by brand extension with the creation of Disneyland.
Diversified Business
Disney has five different business segments such as media networks, parks and resorts, studio environment, consumer products and interactive media. Because of these diverse operations, Disney is less affected by changes in external environment than its competitors are.
Disneyland Theme Park
Disneyland theme park is one of the most earning revenue. Thanks to the visitors, as they spend a lot in tickets, food, hotel rooms, and merchandise while they are visiting Disneyland.
The largest worldwide licensor of character based merchandise
Disney is the world’s top licensor, its merchandise includes superheroes from Marvel, Star Wars characters from Lucasfilm, cartoon characters from Disney and Pixar.
Children and Adult
Besides having children as Disney’s targeted audience. Disney also diversify its target and get adults involved as well. An example will be Pirate of the Caribbean and Maleficent.
(Hellman, 2013)
Weakness
Character development is slow
Comparing to the generating revenue of Mickey mouse and Donald duck, there are only a few new characters that are equal revenue to them.
Heavy dependence on income from North America
Disney operates in more than 200 countries, however for Disney major income, it’s heavily depends on US and Canada markets. As more than 70% of the revenues come from US alone.
High Costs
Disney needs to invest a lot for their entertainment production, research and development costs. Example before the making of Finding Nemo, staffs that are involved in the film had to take Fish Biology classes.
High Risk Involvement
In the market, there’re no guarantee of success for a movie to be a blockbuster or a new character to be
Strength
Brand Image
Walt Disney was ranked 8th in the Top 100 Global Brands, it’s among the popular brand names in the world that has a high brand awareness among people. In 1950’s , Disney started building its brand image by brand extension with the creation of Disneyland.
Diversified Business
Disney has five different business segments such as media networks, parks and resorts, studio environment, consumer products and interactive media. Because of these diverse operations, Disney is less affected by changes in external environment than its competitors are.
Disneyland Theme Park
Disneyland theme park is one of the most earning revenue. Thanks to the visitors, as they spend a lot in tickets, food, hotel rooms, and merchandise while they are visiting Disneyland.
The largest worldwide licensor of character based merchandise
Disney is the world’s top licensor, its merchandise includes superheroes from Marvel, Star Wars characters from Lucasfilm, cartoon characters from Disney and Pixar.
Children and Adult
Besides having children as Disney’s targeted audience. Disney also diversify its target and get adults involved as well. An example will be Pirate of the Caribbean and Maleficent.
(Hellman, 2013)
Weakness
Character development is slow
Comparing to the generating revenue of Mickey mouse and Donald duck, there are only a few new characters that are equal revenue to them.
Heavy dependence on income from North America
Disney operates in more than 200 countries, however for Disney major income, it’s heavily depends on US and Canada markets. As more than 70% of the revenues come from US alone.
High Costs
Disney needs to invest a lot for their entertainment production, research and development costs. Example before the making of Finding Nemo, staffs that are involved in the film had to take Fish Biology classes.
High Risk Involvement
In the market, there’re no guarantee of success for a movie to be a blockbuster or a new character to be