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The walt disney company the entertainment king

Public Domain The Walt Disney Company uses its strong brand as an advantage to address competition and the related external factors specified in this Five Forces analysis of the global business. These factors represent the industry environment where the conglomerate must address the effects of competition with large and aggressive firms.

Walt Disney Co.: The Entertainment King, Spanish Version Case Study Analysis & Solution

The company must align its strategies with the intensities and characteristics of the competitive forces assessed in this external analysis. Nonetheless, the bargaining power of suppliers and the threat of new entry are strategic management issues in the global business environment.

Given such scope of operations, various industry environments are considered in this external the walt disney company the entertainment king. For example, the corresponding industry-specific degrees of competition are accounted for in evaluating the overall competition facing Disney. Competitive rivalry or competition Strong force Bargaining power of buyers or customers Strong force Bargaining power of suppliers Weak force Threat of substitutes or substitution Moderate force The walt disney company the entertainment king of new entrants or new entry Weak force Recommendations.

Given that competition and customer power are the most significant strategic management concerns determined in this Five Forces analysis, it is recommended that Disney focus on developing competitive advantages to further strengthen its brand.

The Walt Disney Company: The Entertainment King Essay

However, aggressive competitors can reduce this relative brand value in the industry environment. Thus, strengthening the brand helps overcome the external factors linked to high-intensity competitive rivalry. The trends influencing business development in these global industries are also considered in this external analysis. The strong force of competition facing Disney is based on the following external factors: Many firms in the market Strong force High aggressiveness of firms Strong force Moderate differentiation Moderate force The the walt disney company the entertainment king of many firms in the market is an external factor that directly translates to strong competition that The Walt Disney Company experiences.

Walt Disney Co.: The Entertainment King Case Study Analysis & Solution

This condition makes the industry environment competitive. Moreover, moderate differentiation contributes to competitive rivalry, although only moderately.

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Thus, this external analysis points to firm aggressiveness and population as the most significant strategic management issues with regard to the level of competition. For example, higher ease of changing brands corresponds to stronger customer power in affecting management practices in the multinational business.

Low switching costs Strong force Moderate price sensitivity Moderate force Moderate ability to substitute Moderate force Low switching costs make it easy for customers to switch or transfer from one provider to another.

For example, a single supplier cannot easily affect the industry because there are many other suppliers available to support companies.

Walt Disney Company Five Forces Analysis (Porter’s) & Recommendations

These trends have the potential to disrupt the international business environment. This external analysis indicates the significance of substitution in strategic management and planning.

Competitive Rivalry or Competition against Disney (Strong Force)

The moderate force of the threat of substitution facing The Walt Disney Company is a result of the following external factors and their corresponding intensities: Customers have a moderate number of substitute options.

The walt disney company the entertainment king addition, the moderate variety of substitutes supports the moderate intensity of this force in this external analysis. A higher variety would make it less likely for customers to move away from substitutes in the business environment. The following external factors and their intensities are the basis of the weak threat of new entry against Disney: However, high capital cost is an external factor that weakens the intensity of this force.

For example, new firms need high capitalization to succeed in competing against established firms. In relation, the high the walt disney company the entertainment king of brand development is an entry barrier.

The Walt Disney Company : the entertainment king

Thus, new entrants are a minor business strategic management issue in this external analysis. Templates for firm and case analysis. In Competition Forum Vol. American Society for Competitiveness.

Porter Five Forces Analysis.