The Walt Disney Company is one of the largest media and entertainment corporations in the world, with operations covering four key businesses: Media Networks, Studio Entertainment, Parks and Resorts, Consumer Products. The company primarily operates in North America, Europe, Asia Pacific and Latin America. It is headquartered in Burbank, California and employs about 144,000 people. (The Walt Disney Company,2012)
This report is going to elaborate the SWOT analysis of the Walt Disney Company and some recommended strategies for it. In the SWOT analysis, a well known brand name, diversification and strong cable and satellite networks are strengths; weaknesses include powerless performance of studio entertainment section and overdependence on the North American markets; in the part of opportunities, it is mainly focus on expanding target group by acquiring companies; the major threats of Disney are its strong competitor, piracy and regulation risk.
SWOT Analysis of the Walt Disney Company
In this SWOP analysis will only focus on two segments: Media Network and Studio Entertainment.
Well known brand name
Disney is the one of the most influential brands in the entertainment business of the company. According to , Disney brand was estimated 9th in the top 100 Global Brands ranking of the BusinessWeek magazine and Interbrand, with the brand value of $28,731 million, in 2010. () Besides, the company owns one of the largest and popular sports channels in the world, which is named ESPN. Other brands such as Touchstone and Pixar are also strong brand equity. () Strong brand image helps the company to build customer loyalty, project an image of a large and established business to your potential customers, and easily to get customers enter into the new products.
The Walt Disney with the help of studio entertainment to design, promote and sell products based on existing and new Disney characters. Therefore, maximum profitability can be achieved. Disney characters are introduced through studio entertainment proportion produces and acquires live-action and animated motion pictures, animated direct-to-video programming, musical recordings and live stage. The interactive media segment of the company creates and delivers Disney-branded entertainment and lifestyle content across interactive media platforms.()
(source: Analysis of the Disney Company)
The company has offered mutual benefit and achieve common progress by their diversity of products. In 2009, Media Network (44.8%) is the main source of the revenue. The derivate production is also benefit for other segments, such as Studio Entertainment (17.0%). A broad and diversified revenue base separates the company from economic cycles in one industry and diversifies the company’s market risks.
Strong cable and satellite networks
The company has strong cable networks. The company’s cable networks and international broadcast operations are mainly included in the distribution of television programming, the licensing of programming to domestic and international markets, and investing in foreign television broadcasting production, and distribution entities. The cable networks has their own programs or secure programs rights from other producers. () The company also has made investment in international broadcast and cable properties. ESPN as one of the largest and popular sports channels in the world manages six television sports networks, including ESPN, ESPN2, ESPN Classic, ESPNEWS, ESPN Deportes and ESPNU. Furthermore, ESPN manages four high-definition television simulcast services as well. The cable networks lends greater stability to the company’s operations in the strong market penetration. The company takes this advantage to cross-sell its other businesses, leading to better revenue growth prospects.
Powerless performance of studio entertainment section
Walt Disney Interactive media Group and