Walt Disney Swot and Tows Analysis

STRENGHTS

Brand image

Walt Disney had the first mover advantage at the beginning of their business, and after they become the largest entertainment company in the world. They focus on providing high quality of products, so they built the strong brand loyalty.

Diversification of business

It has many sub-businesses which are include Walt Disney Studio Entertainment, Disney-ABC Television Group, Disney Interactive Media Group, Disney Consumer Products, Walt Disney Parks and Resorts, Disney Interactive Studios.

The different sub-businesses can help the firm to avoid the business cycle of each sector and non-systemic risk for example the studio entertainment sector started loss since 2004 until 2008, but profit of other sectors are upward trend, so the growth of profit in total can offset the loss from studio entertainment sector.

Great customer service

Many the customers after used the Disney products and service they will feel good on the quality of their customer service. It is important feedback from their customers, because it shows in some way the customers will buy the products and service in the future again or not. The customer service is finding the problems of products through customers and after try to solve immediately.

Acquisition of Pixar

Before 2006, Pixar had collaborated with Walt Disney on many famous cartoons movies such as (Toy Story, Finding Nemo and Monsters). But Disney look at those collaborate as negative due to the limited right to use and reuse the characters contained within the films, and then the Walt Disney bought the Pixar.

This should be a significant change for Walt Disney, because Disney’s traditionally produced animated films (with pen and color artists) being left in the shadows in comparison to the progressively produced animated films (with CGI and digital artwork), it seemed like the best approach that could be taken in order to “catch up with the times.”

CSR

The firm has strong interacted with society and focus on social responsibility a lot because of the firm target market consumers are mostly children( consumer product sector and theme park sectors), so the company must built the friendly figure to the society among the children.

Theme parks

Walt Disney built many theme parks around the world. The first Disneyland Park built in California in 1955. The Tokyo Disneyland opened in 1983. Disneyland Paris opened in France in 1992. During 2000 to 2007 Hong Kong Disneyland opened.

Acquisition of ESPN (Entertainment and Sports Programming Network) sports channels

The Walt Disney Company took control of ESPN in 1995 when it took over ABC. ESPN is one of the largest and popular sports channels in the world, and it contribute many profit for Walt Disney company we can see clearly that since 2004, the media networks are the most profitable sector until now.

Franchise, copyrights and license revenues

This the award from innovation by their employees, after the employees create new popular cartoon figures, the manufacturing will buy the copyright or license to put those cartoon figures on their products to attract the children to buy. It is long term revenue.

Strong position of financial position

The firm has many cash surplus, and a lot of asset capitals. The strong financial position can give conference to the investors after Feb, 2009 the market started to recover ( S&P dropped from 1549.38 points in Oct, 2007 to 734.09 points in Feb, 2009, but after February 2009 the market start to recovery). The Walt Disney stock price is recovered 55.28% back from which was 16.77 on Feb, 2009 to 26.04 until Aug, 2009; it was more than the market recovered which was 39.03%.

WEAKNESSES

High standards and brand image are expensive to maintain

The company has created a high standard for its products over the years. The Disney brand has a standard to be upheld and products released under that standard are held to intense scrutiny. In many ways it represents how The Walt Disney Company is a victim of its success. Disney must continuously maintain its good products quality and service standards because the public has been used to those and sales could get hit otherwise. There is a constant need for Disney`s high standards which are expensive to maintain.

Limited target audience 

Disney is limited by its abilities as it has only children as its target audience. Children`s taste changes frequently, they can easily get bored with products and it is difficult to keep them entertained over a long period. But, children are the biggest influencers in an adult’s life. However, they are not the revenue drivers. Although, The Walt Disney Company has had great success within the demographic in the past, but this doesn’t mean that it will continue to have success in the future. With Universal studio also on the rise, Disney needs to diversify its target and get involved with adults as well.