Strategic Analysis of Walt Disney

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The main objectives of WaltDisney are to provide a magical beginning to all consumers, through synergies created from thoughtful diversification. This report identifies the external analysis of the firm through PESTLE Analysis and Porter Five Forces. External analysis pinpoints the threats and opportunities encounter by Disney. E.g. economic downturn limit consumer spending. Porter’s five forces were applied to analyse the competitive environment that Disney has to deal with. E.g. Bargaining power was moderately high as buyers taste changes frequently.

Key factors of success contribute to the overall achievement of Disney whereby the internal strength and weaknesses is positioned. Disney’s core competencies are their early diversification, strong branding, and innovation, low cost and financial stability. BCG Matrix classification highlights the highest profit maker (Media network), with high market growth/share. Quantitative analysis has indicated the financial stability of Disney and the comparison with three other competitors suggest that Disney seems to be doing okay. Overall outlook looks positive. However the weakness is the Current and Quick ratio that shows Disney’s setback of meeting its short term obligation where their asset is more than their liabilities. Qualitative analysis highlights the effectiveness and efficiency of the four SBU where both Media network and Park and Resort achieve its powerful brand image that withstand the market till today.

TOWS/SWOT matrix is built based on the external and internal analysis. Nine Strategic options are propose where six are selected whilst three are being rejected. Reasons are given for those recommendations and rejections. Measures in the areas of system, structure and policies are properly identified. Models chosen for this report have its usefulness and restrictions. The most prominent restrictions are the fact of the fast environmental changes that makes it increasing difficult to forecast the...
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