Five Force

Topics: Walt Disney, The Walt Disney Company, Walt Disney World Resort Pages: 6 (1742 words) Published: January 20, 2013
5 Competitive Forces Analysis

1. Rivalry among existing firms(competitors)
Competitiveness of enterprises and the current does not play a very important role in Disney's external business environment. That is true, the company's very high exit barriers. In addition, the ability to increase in a very large investment. Therefore, there is no strong direct competitors Disney's business. Competitors, such as "Lonely Tunes" retail stores bear the expensive advertising to gain market share.

2. Bargaining powers of customers
The bargaining power of customers is high in the service and entertainment industry. Disney's business running smoothly requires a lot of customers; the customer has a certain power. For example, if a specific home video price is too high, customers may not be willing to spend the money needed to buy the product. Another example is in the Disney theme parks charge entrance fees. The customer is willing to pay the maximum amount is $ 33. In addition, the entertainment industry does not save the buyer money. Instead, it is to design a way, it will enable the buyer to spend more money. The majority of Disney's product portfolio, focusing on the invisible return on the buyer's money. Some customers may not realize that they are getting such returns may increase the bargaining power of customers.

3. Bargaining powers of suppliers
The bargaining power of suppliers is moderate. Walt Disney Company in a highly differentiated and unique industrial operation and high switching costs associated with the business, suppliers mainly by a handful of companies, is most likely very concentrated. However, Disney is unique and important customer for many suppliers. In addition, the size of the company certainly is a big advantage. Can be ordered from the sole supplier of a large number of unique products, will create a dependency in the same industry.

4. Threats of the substitutes
The threat of substitute products or services is moderate to low. Obviously, the other cartoon characters, theme parks and movie to the Disney business market, but I do not think this is a more obvious threat. The Walt Disney Company has been placed in the ceiling prices of many of its product line, and should be able to compete with new competitors. However, the threat of new entrants in the market alone, requiring Disney to hedge this risk, while improving the products and services.

5. Threats of the new entrants
Walt Disney Company has been able to find a very unique niche in the industry; the barriers to entry are relatively high. The company has been able to grow in a very long time and has been in research and development, marketing, and financial sector department. Relying on past experience, company officials also known as target customers want. Disney spent a considerable number of home entertainment market, it will be very difficult for such a new organization, the development of brand recognition or identification, product differentiation. Disney has focused on market diversification, covering a wide range of products and services. As the market leader, the company may be economies of scale in production practice. For example, only two months to sell over 500,000 copies of "Pinocchio" videos, there are 20-30 million people, its theme parks each year. In addition, extremely large amounts of money into the industry's new entrants. Only very large companies able to meet such a huge capital requirements. Finally, the policy of the Government on the industry seems to be very beneficial.

SWOT Analysis

* Strengths
Disney's main strengths are its resources, experience in the business, its low-cost strategy. In addition, the company has apparently developed a very powerful and well-known brand name for many years. Theme parks around the world and publish generations of children to the film, the Disney brand is one of the best-known brands in the world. In addition to the name of Disney, Walt Disney World...
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