Disney SWOT analysis
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Disney SWOT analysis
Burbank, California, USA
Number of Employees
Products & Services
Television Programs | Motion pictures | Plays | Musical Recordings | Books | Magazines | Video Games | Toys | Apparel | Accessories | Footwear | Home Décor | Cosmetics | Consumer Electronics | Stationery | Radio Networks | Radio Stations | Resort Vacation Club | Cruise Lines | Theme Parks | ABC | ESPN
CBS | Sony | Comcast | Viacom | Time Warner Cable
Did you know that Walt Disney’s first original character was a rabbit named Oswald?
Strengths – Internal Strategic Factors
Disney has strong ties with its suppliers who provide high-quality raw materials for the company’s production line.
Large Cash Flow
Disney has a very strong cash flow system that allows the company to make additional investments in other regions of the company. As of end of 2018, they had a total operating cash flow of 14.3 billion.
Strong Negotiation Skills
The Company has established strong networks and negotiated deals to set up distributors and dealers throughout the United States.
Disney has some of the most creative teams that consist of artists, story scriptwriters, and graphic designers. The qualified teams are a mix of experienced professionals with extensive years of experience in the mass media industry.
High Brand Value
Disney’s brand name and their logo are easily recognizable. All movies and products that are introduced to the public, usually have the “D” symbol somewhere to show that it’s from Walt Disney Studios, Production, or Company. According to Forbes world’s most valuable brands list, Disney is ranked at number 8 position and its brand value is estimated to be $52.2 Billion.
Weaknesses – Internal Strategic Factors
Sky-High Attrition Rate
Walt Disney Company has spent enormous amounts on training and grooming their employees. It has still not improved its high attrition rate.
Poor Financial Planning
According to company’s 2018 annual report, Walt Disney has reported a loss of over $ 1 billion. Loss of $580 million due to investment in Hulu and loss of $469 million due to its investment in BAMtech streaming technology.
Vulnerable To Competitors
The lack of marketing and promotion could leave Disney vulnerable to competitors. The only time they use ads is when they are introducing another movie or toy. Apart from that, most marketing is done visually, through cross promotion.
Insufficient Product Demand Scaling
Disney product designers have poor judgment for the “next-big-idea,” which leads Disney to lose many opportunities compared to its competitors. Whenever there is a serious demand, companies take advantage by coiling up a campaign in relevance. However, Walt Disney fails to take advantage of such opportunities.
Opportunities – External Strategic Factors
Gear Up for Marketing
If Disney decides to make a change in investing in marketing, it could change the many opportunities that they have missed, and possibly stir up new prospects.
With Disney’s expertise in the mass media industry, their set of skills can help innovate technologies and other relative aspects.
Big Names Are Worth It
Disney is the number one company for a lot of children and adults who grew up during the Walt Disney era. Disney alone is a perfect branding source that can be used as an alternative to promote further and market a business. Partnering up with Walt Disney Company is a beneficial move that any company can make.
Disney’s online streaming service: (Disney+)
Disney is developing a new Direct-to-consumer (DTC) service “Disney+” that will feature all Disney, Marvel, Star Wars, and Pixar movies. Disney+ is expected to launch in the US market in late 2019. The service could potentially give a tough fight to Netflix with its massive collection of movies and shows. Additionally, Disney+’s basic subscription plan starts at $6.99 per month compared to $8.99 for Netflix. Overall, it is good for consumers because we will have more options and competition may bring the prices down.
Threats – External Strategic Factors
High Expense Toll
Disney has always spent large amounts on their workforce, employee development, and training. Currently, the average salary offered for a beginner at Disney is $15 an hour. Salary wages around the globe are continuously increasing. With salary wages rising by the country’s law, Disney could end up with lower profits when it comes to paying off their external workforce in foreign countries.
Isolation in America
Due to the many ongoing issues with other countries, most of the administration is trying to pull out of international contracts. It includes many manufacturers. A portion of Disney’s manufacturers are in foreign countries, if the isolation phase continues, Disney could be under pressure to gain sufficient profits.
Better Products & Technology
Since they are kings in mass media production, the technology could be beneficial for them. Disney isn’t a technology or a software house and therefore cannot make technology to work specifically for them.