Disney company-pest analysis and strategy

Topics: The Walt Disney Company, Walt Disney, Strategic management Pages: 13 (2809 words) Published: March 11, 2015
Strategy management
The Walt Disney Company

1. Introduction
This assignment will introduce the background and summary of the Walt Disney Company at the beginning. Then its external and internal environments will be analyzed specifically by method PESTEL and SWOT. Thirdly, a brief present strategy of Disney will be explained. Finally, the strategy formulation and some recommendations will be applied to the company.

2. Introduction of The Walt Disney

2.1. Company summary:
Name: The Walt Disney Company
Founders: Walt Disney and Roy O. Disney
Founded: 1923
Headquarter: Burbank, California, United States
Industry: Mass media
Area served:Worldwide
Employees: 180,000
Vision: To make people happy

2.2. Background:
The Walt Disney Company is an American diversified multinational mass media corporation, which is commonly known as Disney (Sammond, 2005). It is the world's second largest broadcasting and Cable Company. However, it was only established in animation industry by Walt Disney and Roy O. Disney in 1986. With the continuous development, the company begins to diversify its industry and products into television, live-action film production and theme parks (Ayres, n.d). (Table 1, Appendix 1: There are five business segments of the Walt Disney Company)

3. External analysis:
Basically, there are three terms for analyzing the external environment: macro-environment, industry and competitive analysis (‘PEST Analysis’, 2004). In this essay, a specific method PESTEL analysis will be mainly applied to elaborate the external environment of the Walt Disney Company.

3.1 PESTEL Analysis:
Table 2: PESTEL Analysis:
Tax benefits for the animation industry
Tourism policy
Facilities are provided in the special economic zone
Tighter regulation of product safety

General economy growth in global
Economic downturn in Western Europe in 1993
Inflation and Devaluation of Currency
Growth of entertainment industry in Emerging markets
Cost advantage in India
Different local cultures and history
Changes in customers preferences
Significant role of television & film
Significant role of kid’s and family’s entertainment
Technological advancements
Recent social trend in smart phones and apps
Development of world’s media
Eco-Friendly Philosophy
Sustainable Development
Antitrust Law Limits Opportunities 

3.2 PESTEL Analysis ‐ Conclusion  
From the analysis of PESTEL, there are a quantity of factors tend to impact the Walt Disney to change. However, the social factor is the most important one (Kara and Ozturk, 2014). The key drivers are identified as following:

Various new media platforms appear due to technologic advancements. As the development of technology facilitates generating of various new media platforms, smart phone and computers are used by people more frequently than watching traditional television (Kara and Ozturk, 2014). Moreover, people may choice to see films in the APP and Internet instead of going cinema. The Walt Disney has to update the technology and create products in new media platforms in order to meet the changes of people’s life style.

The needs of entertainment are multiple and volatile.
Nowadays, the demand of entertainment increases as development of overall economic. However, the people‘s needs of entertainment are volatile and multiple, which means they usually are attracted by fresh and prefer trying new products (Bailey and Harindranath, 2007). Moreover, they may not be satisfied with just seeing films in the cinema but going to theme park to gain live experiences. Last but not the least, people may pay more attention to quality of services rather than product itself (Bailey and Harindranath, 2007). Therefore, the Walt Disney has to improve the ability of innovation and quality of service in the future.

4. Internal analysis:
In terms of internal environment of company, a tool...
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