SWOT Analysis of Walt Disney

The Walt Disney Company formerly Walt Disney Productions was founded by two brothers: Roy Disney and Walt Disney. Initially the company established itself as a leader in the American animation industry. With the passage of time, Walt Disney diversified into travel, television, live-action film production etc. The company has been a component of the Dow Jones Industrial Average since May 6, 1991. It is best known for the products of its film studio, the Walt Disney Motion Pictures Group.

 

Strengths

 

  1. The Walt Disney Corporation is the biggest entertainment and media in the globe in terms of revenue.
  2. Walt Disney Productions recognized itself as a leader in the US animation industry and most diversified company in the industry.
  3. The Walt Disney now has expanded its operations into radio, theatre, publishing, and online media.
  4. It is best recognized for the brands of its film studio; “the Walt Disney Motion movies group”, nowadays is one of the best-known studios in Hollywood.
  5. Walt Disney has very experienced and strong brand name in the industry.
  6. Disney has many acquisitions with renowned companies of the world. In December, 2009 it acquired the Marvel Entertainment, Inc and Pixar Animation Studios for $4.24 and 7.4 billion respectively.
  7. The corporation is a part of the Dow Jones Industrial Average. It had sales of $31.9 billion in 2005.
  8. Very flexible culture because Disney’s Employees have autonomy to think ahead of limits and come up with new innovative ideas. Employees have strong motivation and teamwork.
  9. Walt Disney has a very creative process to do any work. It starts from brainstorming session known as “Blue Sky”.

 

 

Weaknesses

 

  1. In May 2010, the Walt Disney sold the Power Ranges product with its 700-episode records.
  2. Walt Disney Interactive media Group and Internet Group are doing poorly and have negative net income in 2008-2009. 
  3. Walt Disney has a poor working condition in factories which is also dangerous for the employees.
  4. Unnecessary Research and development which results in higher sunk cost.
  5. Disney has Steady up gradation process which results in higher investment and causes low overall profits.
  6. Disney’s films store characters and banal plots have directed to criticism that Disney films holds racist elements.

 

 

Opportunities

 

  1. Walt Disney can take advantage of traditional American morals while realizing the varying times of today’s society.
  2. Different cheaper alternative available to produce product with features of regional or national appeal.
  3. Disney has opportunities to act locally according to respective countries.
  4. Disney is targeting children but there are other important segments available as well. For example, it can cater to the segment of music channels.
  5. It should also follow niche market because different customers have different preferences and needs.
  6. Shutdown the divisions which have lower or negative returns.
  7. Introducing Disney school of management and training is an important opportunity. 
  8. Walt Disney can follow the strategy of global expansion and mergers to enter in available markets.
  9. It can also follow the strategy of diversification in related and unrelated businesses such as cell phone industry (one of the fast growing industry in the world).
  10. Cheaper and alternative ways of marketing are available such as internet.

 

 

Threats

 

  1. Disney faces strong criticism from various groups of the society. It is claimed that various Disney’s animated family films have sexual orientations concealed in them.
  2. Working conditions in the factories or theaters are bad and riskier.
  3. Disney’s some films are facing strong opposition from various religious, welfare and some conservative groups. 
  4. Walt Disney has been blamed for violations of human rights regarding the working conditions in factories that produce their merchandise.
  5. Walt Disney is facing very flexible industry in terms of innovation and creativity.
  6. It is facing strong competition from local and global players.
  7. To sustain product differentiation and retain employees in theaters is another important threat.   
  8. In a time of 50 years more than 1,500 lawsuits have been cased against the park.

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