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Walt Disney Culture Case Study: Challenges And Threats Faced

Question

Task: You are required to have engaged and read the case study “Reawakening the Magic: Bob Iger and the Walt Disney Company” and found two (2) issues. One of the issues must be from your Part A submission. You will then analyse both issues and develop a set of recommendations using support from peer-reviewed journal articles.

This assessment takes the form of a report. Students should use appropriate headings, a formal style of writing and an appropriate presentation to the document.

Answer

1.0 Introduction
The Walt Disney Company is known for entertain people and inspired people through the power of their storytelling, creative minds and innovative technology throughout the world. It was founded in 1923, and was known as the Disney brother’s studio. As mentioned by Friedman et al. (2016), the Walt Disney Company started with the main vision to provide classical entertainments in the form of 2D cartoons. The Walt Disney Company is a leading International family entertainment along with five business sections: Studio entertainment, direct to customers, interactive media, park and resorts and, Media networks, etc. in 1955 Disney has launched Disney land and it has become one of the best place where different cartoons character can be seen. The Walt Disney Company has faces many issues, the main issues it's facing is that they will be able to maintain their high level of status which they have gained over last 10 years. In this walt disney culture case study the two challenges all issues which has been faced by the Walt Disney Company the formulation of strategy during the management of the strategy. Company has faces many competitions from their competitors in the market.

Walt Disney Culture Case Study

2.0 1st strategic issue
As mentioned by Roper et al. (2016), the Walt Disney Company has experienced different strategic issues. The strategic management has determined that its competitors are taking advantages of its weakness and can easily pull the Walt Disney Company behind in the market. The successful company like Walt Disney deserve attention and this type of tissue is not a big issue for a successful company. When its competitors found a better way to provide sports program at a very low price to the consumer, then Disney did not pay attention to maintain this technology. This is the main reason Disney lost its youth. The Disney also faces challenges from its competitors who was strong in the market. The Walt Disney has focuses on providing entertainment programs according to the taste and preference of the customers if the companies management does not focuses on the changes in the taste of the customers then it will easily leading to its downfall. It is the duty of the company to determine its customers taste and preferences to make its brand more interesting. Disney has faces many criticism in the market along with that it also faces motivating response. The company started making changes to attract a large number of customers which may be achieved or can never be achieved. Disney realized that the positive thought have turned into critics. The company got clear message from the people that the company started to release irrelevant program. The company also faces challenges regarding price of its products. The competitors of Disney are providing the products and programs to the public at very low price comparing to the cost of product of the company and they can act as threat for the Disney. Disney did not focuses on maintaining the technology and new strategies. The positive changes made by the management of the Disney has been converted from positive to a critics. This time was a very hard time for the Disney to maintain its status how to maintain a good position in the market along with the constant focus on test and preference of the customers.

2.1 Issue statement
In the words of Massetti et al. (2016), Disney is located in America and a well-known company. All characters of the Disney have been a part of every adult's childhood. This is one of the most famous company in the world the reason behind this is it has used effectively its external environment to achieve its goal. External environment are event of outside a company which can easily affect an environment. All the children love to experience to be a princess or queen and King or prince. The people do not feel bored at the Disney. The people of the Disney can wear the costume of the different characters and cartoons. The company has many competitors the competitors of the company enable the company to improve and get better and better. Disney use Mickey mouse as their symbol which is a successful symbol for the company.

The company also wants to promote more characters, cartoons and movies. For this they have to analyses all the external factors to set goals. The management of the Disney also started planning according to the needs of the customers and according to their feedback after watching the cartoons and movies to achieve the goals.

Internal environment of the company include strength and weakness. Disney is a multinational corporation has faces many internal weakness and strength. Internal environment of the Disney totally enclosed its strength and weakness which company has faces many critics. The corporate culture of the Disney circulate at all the level of hierarchy and its workforce is aware of its principles. It has adopted different backgrounds. It is one of the largest multi global company. It has generic hierarchical structure and also have a maintained balance of power and additionally it has a large amount of resources. In the words of DeMicco et al. (2016), the company faces challenges regarding price of its products and also faces a strong competition in the market. Disney has started losing a good number of subscribers in the ESPN. The company faces many criticism in the market along with that it also faces motivating response.

2.2 Analysis
External environment: opportunities and threats
Opportunities: In the words of McCoskey et al. (2018), this opportunities can be determined through the swot analysis. In Disney opportunities are the external strategies factors which leads to increase revenue. The Walt Disney Company needs to focus on the following opportunities:

  • growth in various industrial
  • growth of developing market
  • technological innovation

The Walt Disney Company got an opportunity to adopt all the new technologies for example digital technologies for improvement of the business. The Walt Disney Company also got an opportunity of growth in various industry which leads to grow its business through the managerial approaches. The growth of developing market is an important factor which also create an opportunity for the company to develop their business into the market. Through expansion, innovation and diversification the company can grow its revenue.

Threats : The threats has been identified through the Swot analysis. The Disney company management needs to handle the following threats towards business:

  • Competition digital
  • content piracy
  • technological disruption

The competitors of the Walt Disney Company offering movies which are similar to the one provided by the Disney Marvel studio. Technological disruption place in the Walt Disney Company and can reduce the profit of the company. Digital piracy reduces the revenue of the company. The world Disney Company need to apply SWOT analysis increase its advantages against technological disruption and piracy.

Internal environment: strength and weakness
Strength: Strength of the business protect the company from the problem in future. In SWOT analysis the internal factor strengthen the growth of the business by supporting the strategies of management which leads to grow the business. The following are the strength which give strength to the Walt Disney Company:

  • Grand portfolio of popular products
  • popular and strong brand
  • strong cooperative growth

Disney is a very popular brand all over the world. The portfolio of popular products are growing and this is one of the important strength of the business. The company's movies, programs, amusement park, cartoons characters and services are increasing.in the words of Holcomb et al. (2017), the company has gained high popularity from the public. This is one of the most important strength of the company.

Weakness : The Swot analysis determines givn in this walt disney case study the weakness of the world Disney Company which leads to downfall of the company and can affect the business growth and development. The following are the weakness of the company on which the Disney needs to focus:

  • Limited innovation
  • limited expansion of parks
  • limited diversification

The Walt Disney Company has faces many weaknesses which has been identified by the swot analysis the company have many limited innovations the company needs to innovate continuously for the development of the product. In adopting new technologies the company has faces reactive approaches instead of aggressive approach. The company needs to focuses on expansion of its amusement park and different types of park. Limited expansion of park is a weakness for Disney. As mentioned by Koontz et al. (2019), the company has focuses on quality of product and features instead of focusing on continuous innovations. Limited diversification is also a weakness has been identified in this analysis of Disney.

Corporate culture: Business corporate culture is related to American culture. In the words of Xiaoli et al. (2019), the business successful because it has corporate culture that give power to the employee to improve their performance and profit of the company. The corporate culture give support in managing the growth strategy and opportunities to the corporation. In the words of Li et al. (2018), this culture put emphasis on the innovations which motivates the company to develop its product which matches with the new technologies and trends in the entertainment industry, mass media industry and in the and amusement park.

2.3 Recommendations
It is recommended in this walt disney case study that the company needs to focus on improving the competitiveness and all needs to focus to get success in international market the Walt Disney Company needs to focus on the issues of the organization. It is recommended that the company needs to continue its innovations to increase its brand image in the market and to stay in the competition. In the words of Edwards et al. (2018), the company needs to focus on its mission and vision and also needs to identify threats. The company should release movies and characters according to the taste and preferences of the consumer and after getting their feedback. It is recommended in this walt disney case study that the company needs to buy the cheapest system which has been adopted by the company means to adopt any operation so that the company needs to adopt any operation so that reduces the price with the same quality. Reducing price with the same quality help the company to maintain its customers and will bring back those customers which has been lost to competitors. The company needs to improve its organizational culture by providing support for deviation from family orientation. This support allows the company flexibility for some part of the international market. People are focusing on internet more than TV this is the opportunity for Disney to expand its market. The company could be doing better by considering the share from acquisitions and by considering the slow growth of the divisions which includes ABC.

3.0 2nd Strategic Issue
As opined by Pelletier-Gagnon et al. (2017), the Walt Disney Company faces many challenges in formulation of strategy. The biggest problem the Walt Disney Company has facing in recent year is decreasing at subscribers to its network, ESPN. In 2010 it has 100 million of subscribers, the figure dropped in 2015 to 92 million. This shows the decline of the Walt Disney Company and its revenue in media network parts fell by 2% year over year in 2017. In the words of Brito et al. (2018), its operating income also decreases by 4%. In the cable network ESPN occupy, the poor number assign to less advertisement revenue. Star wars franchise and box office help the studio entertainment section bring Disney. This represents a major problem that networks needs to deal with. The company needs to convert TV to internet services. One of the important strategic issues that the world Disney has facing is it losing a good number of subscribers in the ESPN. In the words of Aleong et al. (2018), when the company began its journey it has more customers compared to the recent years. It is holding very few customers in entertainment program and sports program network. The company is facing this issue because it is not applying the new technologies which has been applied by its competitors that is the reason it is facing a competition in the market. The competitors of the Walt Disney Company is providing expensive services in comparing to its competitors republic and watch the same sports and programs on internet platform at very low cost instead of watching on TV. The company faces challenges in adopting the new technologies, competitors of the company has already adopted the new technologies because the Walt Disney Company has focuses more on providing quality product and in making strategy instead of focusing on the recent trend and taste and preference of the consumer.

3.1 Issue statement
As mentioned by Warrick et al. (2017), the Walt Disney Company can we differentiate buy its fundamental practice and knowledge. Disney has a clear corporate strategy has been contributed to success of the company and give importance to its brand image. The company's strategy is to make exclusive and magical products. The biggest problem the Walt Disney Company has facing in recent year is decreasing at subscribers to its network, ESPN. The company faces challenges in adopting the new technologies. The corporate culture of the Disney circulate at all the level of hierarchy and its workforce is aware of its principles. it has adopted different backgrounds. It is one of the largest multi global company. The company needs to convert TV to internet services. One of the important strategic issues that the world Disney has facing is it losing a good number of subscribers in the ESPN. Disney creative potential of creating large amount of shareholder. Disney has announced a creation of direct customer in international unit. The company is facing this issue because it is not applying the new technologies which has been applied by its competitors that is the reason it is facing a competition in the market.

3.2 Analysis on issues
Trend analysis: In trend analysis in 2014 the gross domestic product is 4% and next 5 years it becomes 3%. The unemployment rate decreases by 9%. Disposable income of the company is increasing by 9% in next 10 years and in 2013 its consumer spending is increases up by 5%. State spending go up globally 3.2% - 4.6 % of gross domestic product.

Swot analysis: SWOT analysis model helps an organization in identifying the internal strategic factors such as strength and weakness and external strategic factors such as opportunities and threats. The Walt Disney Company has applied SWOT analysis model to identify its internal and external environment

Strength : The strength of the company can be identified by the swot analysis which has been applied to determine the internal factor of the organization. The company has gained high popularity from the public. This is one of the most important strength of the company. The brand of the company has a very great image in the eye of the public. The Walt Disney Company has strong cash flow which helps the company to expand its new projects. The company has wash product and services and has developed a large distribution network. Company invested resources in the development and training process to the employee and the workers .the brand of the company is very important is the company wants to innovate new products and wants to introduce new innovative products in the market in this the strong brand portfolio is very important. The company is also a strength of the company because they only promote the product of the company customer and can gain maximum benefits out of the products and services.

Weakness : As mentioned by O’Toole et al. (2016), the swot analysis model has been applied by the organization to determine the weakness of the company. The world Disney Company has high cost structure and has high attrition rate and it needs to invest a lot of money compared to its competitors in development and training programs to the employees. The current asset ratio represents that the company needs to use its cash in a better manner the way it's doing at present. Due to high rate of its product it's losing its opportunities. In the words of Isabella et al. (2017), the Walt Disney Company is focusing on quality of the goods not on rise of the price and it is not good in demand forecasting. The most important factor which leads to downfall of the company is not in a process of continuous innovation. In the viewpoint of Voigt et al. (2017), the company is releasing irrelevant programs and characters which public does not like. The company needs a large amount of capital in executing an innovation and entertaining and development program of its employees.

Opportunities: In the words of Smagorinsky et al. (2016), the swot analysis model has been used to identify this external factors of this model has been applied by the company to identify the opportunity so that the company can attain those opportunities for the development of the company. In the words of Kelleher et al. (2016), the Walt Disney Company has got many opportunities in expansion of its business. The cost of transportation decreases because of less shipping price and this is an opportunity for the world Disney company's products by which the company can earn profit and can provide benefit to its consumers to gain market share. New trends and technologies in the market is an opportunity for the world to expand its business by building new revenue stream in their new products. The world Disney Company also invested money in online streaming through this the company get to know more about the needs of the customer. The government free trade agreement and deduction of new technology also provide an opportunity to the vault Disney Company to enter into a new market (Haslanger et al. 2019).

Threats: SWOT analysis tool has been used to identify the trades of the company. This is important for the healthy company to be aware of the threats in the market. In the viewpoint of Van de Vijver et al. (2016), the new technology which has been adopted by the competitors can be a threat to the industry. Rising in raw materials can also be a threat to the profit of Walt Disney Company. The competitors of the world Disney Company can easily make substitute of the products provided by the Disney. Technological disruption place in the Walt Disney Company and can reduce the profit of the company. The games, movies and characters which has been produced by the Walt Disney Company can easily be shown by the competitors at a less cost comparing to the Disney's cost. The Walt Disney Company is a very popular and big company and need a large amount of capital to enter into a market but its competitors has the advantages that they can easily enter into the market with a low capital.

3.3 Recommendations

  • This case study of walt disney company recommends that the The company should make a strategy which reduce the expenses during the production of their products in order to decrease the price of the product. This will enable the company to provide a quality product to their consumer at a very low price. If the company provides low quality products to the consumers then it will lose its consumers who give value to quality products rather than price.
  • The company needs to maintain the quality along with an affordable price. This way the company will able to maintain its position in the market and it will continuously get new opportunity to expand its business. As opined by de Aguillar Pinho et al. (2017), it has been recommend to the company to snake alternative strategy.
  • The company needs to release the cartoons and characters according to the interest and preference of the consumers because the interest of the consumer may changes. If the consumers is not liking the characters and entertainment films then there will be a decline in income of the company and customer will not purchase the product.
  • It is recommended in this case study of walt disney company that the company needs to predict the reaction of the public introducing the new characters before releasing it. The feedback and response from the customer will help the company to understand their interest. The only advantages behind reducing the cost of the product is it can earn back its consumers, who give moral value to cheap products.
  • The company should produce different types of products in order to remain stable in the market. The company should attract the market through their innovative and educational product which is easy rather than providing entertainment forms of products. In the management of the Walt Disney Company needs to make relevant decisions for the expansion of the strategies to achieve the goal of the company.

Conclusion
The Walt Disney Company was established in 1923 and it is a very popular company and a strong company. They started the Walt Disney Company innovation to provide classical entertainments in the form of 2D cartoons. The Walt Disney Company is a leading International family entertainment. The Walt Disney Company has faces many issues. It has been concluded in this walt disney culture case study that the Walt Disney Company has faces many challenges. Two main strategic issue has been explain in the above report. Disney has faces many criticism in the market along with that it also faces motivating response and has faces competition. The external and internal environment of the company has been explained in the above report. External environment are event of outside a company which can easily affect an environment. Internal environment of the Disney totally includes its strength and weakness which company has faces many critics. The swot analysis has been explained to identify the internal and external factors of the organization has been explained in the above walt disney case study. The Walt Disney Company faces many challenges in formulation of strategy.it has been evaluated that the trend analysis and SWOT analysis is very important tool which has been used to analyses the different factors of the organization recommendations has been made which is very important for the company to adopt. I company should focus on the recommendation has been made in the above case study of walt disney company. Walt disney case study assignments are being prepared by our management homework help experts from top universities which let us to provide you a reliable assignment help best service.

4.0 References
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Brito, L.A.L. and Carvalho, L.S.P., 2018. Movile: Sustaining an Innovative Culture on a Global Scale. In Business Despite Borders (pp. 89-103). Palgrave Macmillan, Cham.

de Aguillar Pinho, M.L.C., da Rocha, A.M.C., de Aguillar Pinho, C.R. and Giovannini, C.J., 2017. “Monica and Friends”: the challenge to internationalize. Emerald Emerging Markets Case Studies, 7(2), pp.1-26.

DeMicco, F.J., 2016. A Disney strategic approach to patient/guest services in Hospitality Bridging Healthcare (H2H) and medical tourism and wellness. The Routledge Handbook of Health Tourism, p.261.

dust over Hawai‘i, P., 2016. Native Realities in an Imaginary World: Contemporary Kanaka Maoli Art at Aulani, A Disney Resort & Spa. TOURING, p.167.

Edwards, G., Hawkins, B. and Schedlitzki, D., 2018. Bringing the ugly back: A dialogic exploration of ethics in leadership through an ethno-narrative re-reading of the Enron case. Human Relations, p.0018726718773859.

Friedman, H.H. and Gerstein, M., 2016. Are we wasting our time teaching business ethics? Ethical lapses since Enron and the Great Recession. Ethical Lapses Since Enron and the Great Recession (September 14, 2016).

Haslanger, P., 2019. The landscape of corporate venturing in Germany: Insights on corporate venture capitals and corporate accelerators (No. 01-19). UO Working Paper Series.

Holcomb, J.L. and Smith, S., 2017. Hotel general managers’ perceptions of CSR culture: A research note. Tourism and Hospitality Research, 17(4), pp.434-449.

Isabella, L.A., Yemen, G., Isabella, L.A. and Yemen, G., 2017. The Wonderful World of Human Resources at Disney. Darden Business Publishing Cases, pp.1-14.

Kelleher, H. and Yoda, J., 2016. 7 Implementing and executing strategies in the business and functional levels. The Strategic Planning Process: Understanding Strategy in Global Markets, p.243.

Koontz, A., Norman, L. and Okorie, S., 2019. Realistic love: Contemporary college women’s negotiations of princess culture and the “reality” of romantic relationships. Journal of Social and Personal Relationships, 36(2), pp.535-555.

Li, E., 2018. A case study of the critical success factors for organizational change of a public listed corporation: Hong Kong Broadband Network. Public Administration and Policy, 21(2), pp.152-165.

Massetti, B., Angelidis, J. and Murphy-Holahan, M., 2016. The Quantification of Social Action in US Corporations. Journal of Leadership, Accountability & Ethics, 13(2).

McCoskey, J., Olinsky, L. and Müller, L., 2018, October. The Corporate Integrity Implosion: Strategies for Technology, Media & Entertainment Organizations. In SMPTE 2018 (pp. 1-9). SMPTE.

Ng, L.C., 2016. Marketing Myopia–An Update (How Theodore Levitt Changed Our World? A Look at the Impact on Corporate Management after Five Decades). Journal of Marketing Management, 4(2), pp.24-34.

O’Toole, M. and Grey, C., 2016. ‘We can tell them to get lost, but we won’t do that’: cultural control and resistance in voluntary work. Organization Studies, 37(1), pp.55-75.

Pelletier-Gagnon, J., 2017. Atari to Zelda: Japan’s Videogames in Global Contexts, written by Mia Consalvo. Asiascape: Digital Asia, 4(1-2), pp.143-146.

Roper, S., 2016. Branding the entire entity. The Routledge Companion to Contemporary Brand Management, 35(4), pp.15-18.

Smagorinsky, P., 2016. An Autistic Life, Animated Through the World of Disney: A Loving Autoethnography. In Creativity and Community among Autism-Spectrum Youth (pp. 269-291). Palgrave Macmillan, New York.

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Voigt, K.I., Buliga, O. and Michl, K., 2017. Making People Happy: The Case of the Walt Disney Company. In Business Model Pioneers (pp. 113-126). Springer, Cham.

Warrick, D.D., 2017. What leaders need to know about organizational culture. Business Horizons, 60(3), pp.395-404.

5.0 Appendices
Appendix 1: Walt Disney Revenue

Walt Disney Revenue

Appendix 2: Earning history OF Walt Disney Company

Walt Disney Earning history

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