The Walt Disney - Case Study

[pic 1]The Walt Disney

Assessment 1 – Case Study – Executive Summary

Lecture Name: Professor Dr. A B Sim

Tutor Name: Mr. Eng Thuan Bernard Tay

Tutorial Group: A

Date of Presentation: 18 June 2015

Date of Submission : 14 June 2015

Group Members:

1. Aldo Suwanto                                         (5040693)
2. Bayarsaikhan Otgonjargal         (4834604)
3. Wendi Hadi Wijaya                         (5035302)
4. Zeng Yanrou                                        (4834586)

Table of Content

                                                                                        Page

1. Introduction ………………..………  3
2. The Issues of Walt Disney ..……….  3 - 4
3. SWOT Analysis ………….…….….. 4 - 6
4. PESTEL Analysis ………….……… 6 - 8
5. Porter’s 5 Forces Model …………... 8 - 9
6. Financial Table of Walt Disney …… 9 - 10
7. Recommendation ………………….. 10 - 11
8. Conclusion ………………………… 11
9. References ………………………… 12 – 13

1.0. Introduction

Walt Disney was an American motion-picture and television producer and showman, famous as a pioneer of cartoon films and as the creator of Disneyland. The Walt Disney Company has diversified media and entertainment company with business lineup that included theme parks and resorts, motion picture production and distribution, several television networks including ESPN and ABC. The Walt Disney Company was founded in 1923, by brothers Walt and Roy as an animations studio, it has become one of the biggest Hollywood studio. One of the most famous Walt Disney Studios cartoons are Mickey Mouse and followed his girl-friend Minnie (1928) and others friends like Pluto, Donal, Daisy and Goofy created (1929). The founder of Mickey Mouse is Disney and Iwerks 1928. Nowdays the Walt Disney Company still becoming number 1 popular around the world. However, there are 4 issues that Disney company facing which were 1) Disney media networking, 2) the company are likely to make 2 animated film a year Pixar and Marvel, but it takes long time to complete and probably 6 years above to complete it, 3) the consumer products sales are decreasing due to disposable income of consumers for instance books, magazines, stationery and others, 4) Interactive media division suffered and lost money during 2009-2011 fiscal due to the new generation technologies competition. Based on issues Disney Company issues, we will use SWOT analysis, PESTEL analysis and Porter’s 5 forces model to further elaborate it and including recommendation.

2.0. The Issues of Walt Disney

1. Media Networks.

The Walt Disney has provided some media tools like television and radio to promote their films. It has some challenges for the Disney’s company like competitors who provide other entertainment and it effected to the company’s revenue and the number of viewer. Most of the customers would like to watch DVD, or play video games and some of the customers would like to watch the movies from the Internet rather than television.

2. Motion Picture

After the company released new movies, they can’t collect more profits after they spent their money on advertising and production cost to produce the movies. Most of the customers would like to access the movies at their home and the customers would like to watch the movies when it is available on DVD or Blu-ray disks.

3. Consumer Products

The Disney’s company has made merchandise, children’s book and magazine and the company sell their products at physical stores around the world and also the Disney’s company provided e-book to make their customers easier to buy the books from the internet. The company can’t collect more profits because the number of sales decreased. Most of the customers change their shopping trends and more focused on their income.

4. Interactive Media

The company has produced video games, games consoles and smartphone platforms. The company can’t earn profits because it has so many competitors and it caused the company losses their money because most of the customers not interested with the video games.

3.0. SWOT Analysis

SWOT analysis is a study undertaken by an organization to identify its internal strengths and weaknesses, as well as its external opportunities and threats.

1. Strengths

 The company strength is brand reputation because Disney brand has been known for more than 90 years in US and has been widely recognised worldwide, especially Disney channel, Disney park resort and Movies from Walt Disney Studio. The second strength is highly diversified portfolio product also part of the company strength. Walt Disney products include broadcast television ABC and cable networks such as Disney Channel (240 million subscribers) and ESPN (300 million subscribers), which one of them most watched cable networks in the world “Ovidijus Jurevicius, 2013-2015”. The third is about Global expansions also parts of the company strength because there are 5 Disneyland around the world which are Disneyland theme park in Anaheim California, Walt Disney World Resort in Florida, Disneyland theme park in Paris as well as Disney in Hongkong and Tokyo Disney land. There are 4 cruise line that Disney built around the world which to attract children and families and the four ships are about 90 percent booked for the year. There is new Disneyland in Shanghai, but it still under construction. Furthermore, one of the strongest sides the company its competency in acquisition. In 2006 the company has acquired Pixar and acquisition of Marvel in 2009. And the last is Disney had also made much of its content available digitally, including WatchESPN services for the internet, smartphone, and table computer users which to attract audience. The company also has 5 diversified businesses which are media networks, parks and resorts, studio entertainment, consumer products and interactive media.

2. Weakness

The weakness of the company is the operation cost for the movies is too high because the company also should spend the money on the advertising and production cost to produce the new movies. The second weakness is the company sell the products very expensive. For examples, in all Disney theme parks sell the products with high cost such as water bottle, doll, kid toys and any merchandise compared to other stores outside the theme parks.  For the third weakness, the company is heavy dependence on income from the US Company alone because the US provides 70% of the overall income among their 200 countries “Ovidijus Jurevicius, 2013”. This mean, if there is crash in US market, the whole company will suffer.

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