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Walt Disney SWOT Analysis | Business Analysis of Disney (SWOT)

 

Walt Disney is a celebrated name in the entertainment industry. They are famous due to their cartoons and other entertainment productions. Moreover, it is one of the most unbeaten companies in the world right now. It has exponentially grown in recent nine decades. This studio was idealized by Walt Disney and Roy O. Disney in 1923. They are known for their contribution such as Alice in Wonderland and The Lion King. In this Walt Disney SWOT Analysis, we will discuss the strengths, weaknesses, opportunities, and threats.

 

Company Name: The Walt Disney Company

Founded: October 16, the year 1923, Los Angeles, California, United States

Founders: Walt DisneyRoy O. Disney

CEO:  Bob Chapek (Feb 25, 2020–)

Head office: Newport Beach, California, United States

Area Served: Worldwide

Industry:  Mass Media Company

Products:  publishing | Television | films | music |amusement parks | video games | streaming | radio | web portals | broadcasting,

Employees (Sep 2020):  223,000

Annual Revenue (2019):  US $ US$ 69.570 billion

Net income | Profit (2019): US$ 11.054 billion

 

Walt Disney SWOT Analysis | Business Analysis of Disney (SWOT)

Strengths of Disney (Internal Factors):

  • Dependability:

The relationship between Disney and its suppliers is quite exceptional. These suppliers provide top quality raw stuff for Disney’s production line.

  • Hefty Cash Flow:

With powerful cash flow, Disney has the ability to spend money on other sectors to improve its streamline and work. Their entire operating cash flow was 14 billion in 2018.

  • Effective Negotiation Abilities:

Disney has powerful and effective negotiation networks. This thing is useful for dealing with distributors and dealers. This strong negotiation skill helps them a lot in many projects.

  • Talented Team:

From graphic designers to scriptwriters, artists, Disney has the world’s best and creative team. They are experienced and effectively deal with everything. They are also experienced in the media industry and mass media.

  • Sky-scraping Brand Worth:

Disney is a famous entertainment production house in the world and even kids can recognize them with their logo and name. They use ‘’D’’ in their movies and cartoons which means it is from Walt Disney production. Its brand value is approximately 52 billion dollars and it is ranked at 8th number in the Forbes list of most valuable brands.

 

 

Walt Disney SWOT Analysis | Business Analysis of Disney (SWOT)

Weaknesses of Disney:

  • Huge Attrition Rate:

After investing a huge amount in the training and grooming of their workers, Disney is still struggling to enhance its sky-high attrition rate.

  • Bad Financial Planning:

Disney released their annual report in 2018 in which they clearly mentioned a loss of over 1 billion dollars. Hulu and BAMtech are the two main reasons for the loss.

  • Susceptible to Rivals:

Due to weak promotion and marketing strategies, Disney is still facing problems from their rivals. This weakness of Disney can be risky for their revenue and market share.

  • Unsatisfactory Product Demand:

Disney is unable to get the advantage of many opportunities due to its insufficient demand for products. It is one of the major weaknesses of Walt Disney that can damage its brand image and worth.

 

Walt Disney SWOT Analysis | Business Analysis of Disney (SWOT)

Opportunities of Disney (External Factors):

  • Prepare for Marketing:

After facing a huge decline, Disney has the ability to invest in several factors that they missed. For this purpose, they need to look at their policies and marketing strategies to gear up for marketing.

  • Core Skills:

As Disney has the world’s most creative and skilled team, they can achieve innovation in many sectors with the help of their expertise.

  • Big Names are Necessary:

As most people are watching Disney’s cartoons and movies from their childhood, they don’t need any big name for promotion and marketing to improve their brand image. But if they focus on this factor and bring some big names to promote their brand, this thing will really useful for Walt Disney.

  • Online Streaming Service:

Disney is working to develop the latest DTC (Direct-to-Consumer) service in the form of ‘’ Disney+’’. It will feature Disney, Star Wars, Pixar, and Marvel movies. This service can give stiff competition to Netflix with an ample of shows and movies. They are planning to start this plan at 6.99 dollars per month. As Netflix provide their subscription at 8.99 dollars per month. However, it will definitely work for consumers.

 

Walt Disney SWOT Analysis | Business Analysis of Disney (SWOT)

Potential and Threats of Disney:

  • High Outflow Toll:

Disney spent a large sum on its employee development and workforce. As the demand for increased wages is rising day by day in every industry, this thing can be the reason for the decrease in the profits of Disney.

  • Isolation in the US:

As the company is facing many problems with different countries, most of its manufacturers are isolated in foreign regions. That’s why Disney is under pressure to get enough profits.

  • Enhanced Technology and Products:

Disney is the king in the mass media industry undoubtedly. They need to focus on technological advancement to increase their profit game.

 

Conclusion:

Despite all the threats and weaknesses, Disney is still going strong. Now everyone likes to watch their cartoons and content. That’s why it is an iconic studio in the world. They are also in demand due to their animated movies. They effectively manage their cash flow and sustainability.

 

TAGS:

Walt Disney SWOT Analysis, SWOT ANALYSIS, CASE STUDY, SWOT Analysis of Disney, Business Analysis of Disney (SWOT)

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