Disney Case Analysis Essay

908 Words Dec 18th, 2011 4 Pages
Case Title: Disney Case Analysis

1. Who are the main players (name and positions)? (5 pts.)
Walt Disney-Founder of Disney
Michael Eisner- became Chairman and CEO of The Walt Disney Company in 1984, known for transforming Disney into industry leader. He stepped down as CEO in 2005.

2. What business(es) and industry or industries is the company in? (5 pts.)
Disney is in the entertainment , media, computer software, consumer products manufacturing, and leisure industries. It is one of the largest media and entertainment corporations in the world. Studio Entertainment, Parks and Resorts, Consumer Products, Media Networks

3. Perform a complete SWOT analysis on the company. (40 pts.)
Strengths:
Global standardization
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Mature industry life cycle.
Threat of potential competition – low. Entry barriers are relatively high, as Disney has a very distinctive niche in the industry. They have grown over a long period of time and have developed in departments of R & D, Marketing, and Finance.
Bargaining power of suppliers – low. A company of Disney’s size and with strong brand recognition seems to be in driver’s seat in supplier negotiations.
Bargaining power of buyers – high. With so many choices in the entertainment sector, buyers have many choices and can dictate, to some degree, what they like and dislike, through movie or theme park attendance.
Threat of substitutes – high. There are other amusement parks, such as Six Flags, Kings Island, etc. Also, options of home entertainment, video gaming, and interactive gaming.

5. What structure and controls can you identify? (10 pts.)
Structure:
Founded in 1923 by Walt Disney
Michael Eisner-consider savior of Disney
Disney possesses: Media Networks, StudioEntertainment, Theme Parks and Resorts, Consumer Products, and Internet and DirectMarketing.
110,000 employees
Good training and opportunities for employees.
Using innovative ideas from employees

Controls:
Pioneer most innovative and one-of-a-kind attractions
Nation’s leader in family entertainment
Competitive advantage in superior product quality and assortment
Self-sufficient production scheme
Reduced licensing

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