Posted on September 27, 2012 by mackenzieschepmanblog
As I continue to publish my own options of the Disney Corporation, I felt that conducting a SWOT analysis was the best way to understand Disney. Analyzing Disney’s internal and external business practices will allow me to gain a better insight of possible corporate projections of success and failure. Below I have discussed a few of the company’s strengths, weaknesses, opportunities and threats. The topics I chose to discuss are, in my opinion, the most important. Strengths:
A strength that Disney has is its incredibly strong brand awareness. As a child I had willingly been indoctrinated with the brand and can even recognize the distinct calligraphy associated with the brand. It comes as no surprise that BusinessWeek has ranked Disney as the 8th most recognizable global brand. A recognizable brand such as Disney increases consumer trust and indicates the company’s advanced and successful marketing. Another strength is Disney’s strong net-income. Though Disney’s latest flop, John Carter (receiving a domestic box office deficit of about $177,000,000), they still had an increase in revenue. The company saw an increase of 24% in revenue, receiving a net income of $1.83 billion. This indicates that when faced with financial burden, Disney remains an effective and sustainable company. Weaknesses:
One of Disney’s weaknesses is their limited target audience. Disney primarily targets to families with younger children. This is especially true with regards to their theme parks. The use of animated characters and a family friendly atmosphere in their global theme park franchise does not exactly appeal to a mature audience. However, with their somewhat recent company acquisition of the Marvel brand, Disney broadened their market to an older crowd. This purchase has increased Disney as a threat to the more mature entertainment market currently dominated by Paramount and Warner Brothers. Another...