Porter’s Five forces model5
Improvement of customer relations strategy9
The further introduction of ICT technologies9
Superior market segmentation10
Winnie the Pooh trial10
Appendix i – Portfolio vs core competence perspectives14
Walt Disney is a developer, producer and worldwide distributor of feature films and television programs, cable network programming and character-based merchandise. Besides, its theme parks are the most popular in the world. The current forces in the market create certain challenges for future success of the company’s development. The presents analysis starts with the discussion of current environmental and industry factors. This analysis produces the holistic view of the macro factors that affect the industry players and the company. The second step comes to the analysis of the business environment competitive environment and the way the company develops and maintains its competitive advantage. This analysis creates a picture of internal capabilities of the companies. Basing on the evaluation of external and internal factors the analysis of strengths and weaknesses is delivered. It creates a framework for devising possible strategic intent of the company and identifies possible vulnerable points that can affect the feasibility of the strategy. Basing on the analysis of the environmental factors and company’s capabilities the paper reviews current opportunities and threats.
According to Grant (1998), in order to identify the key success factors and the company’s opportunities and threats it is important to study environmental factors that effect the firm’s strategy on the industrial level. To do this, PESTEL analytical tool is applied.
Political and legal factors influence the development of the industry. These factors shape the rules of competition, operational costs (minimum wage, safety requirements and consumer law) and the presence of various lobby groups. The important political factor is local legislations regarding foreign ownership, cross-ownership and concentration. For example, Chinese government limits foreign ownership to 49%, when the right to control directly a subsidiary requires 51% of ownership. It means that a company shall look for potential partners to form joint ventures or strategic alliances. Hill (2002) points out these market entry options translate into the reduced control of the subsidiary’s activities.
The economic factor has a crucial importance for the industry development. According to Mintel report (2003) the theme parks and consumer goods are the most dependant on the economic factors. For instance, US and European markets were recently strongly affected with recent economical downturns. The reason for such the influence is the relationship between the economic cycle and the growth of PDI. As Hill shows (2002) the PDI positively affects consumer confidence in economic health and their capability to buy entertainment products. Thus, the healthier the state of a country the higher will be the growth of a consumer market and its corresponding value. The company's theme parks and resorts are vulnerable to exchange rate fluctuations, travel industry trends, changes in available leisure time, oil and transportation prices and weather patterns.
The demand trends are shaped by the following major factors: demographic shifts,...