BCP Business & Management
MEEA 2022
Volume
34
(2022)
77
Walt Disney’s Company SWOT Analysis
Wenya Zhou
*
School of Dulwich international high school, Suzhou, China
*Corresponding author: diana.zhou23@stu.dulwich.org
Abstract.
This article discusses the background of Disney by collecting their various materials from
the Internet, and some of their marketing and business means. analyzed some methods and their
recent financial statement information, can find each period has different stock prices related to the
event and the new products and services as well as the results and findings also illustrated the future
development and current strategy. This found that their strategies still have some problems and can
be improved. Using the method of doing some real experiments such as some questionnaires given
to strangers and writing their real ideas about the Walt Disney's lack and how this company can
improve and something the consumers like also something they do not like is also very crucial This
research significance can help Disney do better and stronger in the future, not only in the
entertainment industry but also in other industries.
Keywords:
film; movie industry; entertainment; business; and marketing strategy.
1.
Introduction
The background of Walt Disney is a man called Walt Disney was keen on making the cartoon
when he was young in 1922 he and his brother create a cartoon studio. They hire a worker called
laugh O’Brien who successfully creates the first cartoon film [1]. Disney is facing more competition
on many fronts and, like other media and entertainment companies, must continue to adapt to a
changing technological and social environment. However, because of many debts and money flow
problems, they shut down the company and start a new studio with their friends in California. In 1971,
the first California amusement park opened and then spread all around the world, the Walt Disney
industry has more profit and become more commercial [2]. Disney and its spectacularly successful
theme parks are analyzed through the lens of its consumers. We focus on how Disney manages the
consumption experience and discuss Disney strategies from several perspectives. Disney provides a
paradigm for contemporary consumption. A framework is presented to understand consumption in
Disney and Disneyesque settings. Finally, we offer cautions and critiques regarding such strategies-
a guide for the informed consumer [3]. The organization's customer service philosophy was
established over 35 years ago by its founder. In 1983, another marketing plan is to have Disney
movies expand into the TV industry, people should pay and subscriptions, which make the company
even more profitable [4]. we have investigated the efficiency of two valuation models, discounted
cash flow method and residual income method respectively. Some companies such as tourism:
Tourism can be said to be one of the most important sources of income and foreign exchange, and it
is growing rapidly. However, national and international crises can have huge negative economic
consequences. The crisis management of tourism aims to explain the theory and actions that can be
taken to better understand consumers, the economy, and the environment So that relevant enterprises
can prepare for such events and how to deal with business during the crisis.
Overall, this article is all about the analysis of the company now and future, including film
description, commercial analysis, SWOT analysis, conclusion, and some personal opinions and
suggestions. In addition, this article provides the stock price and has some diagrams to illustrate the
following development between 1968 to 2022, as the picture shows the stock price has gone up
drastically. Finally, the conclusion summary that the whole article's strengths and drawbacks, also
some of the contents lack and can improve next time.
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(2022)
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2.
Firm description
2.1
Background information
In 1932 Walt Disney created his cartoon film Flowers and trees to win the first Oscar. After that,
they decide to develop a new area they have not tried before, which is one of the strategies. They
invite an actor to dub the movie called Mickey mouse and this is the first try of the whole industry.
Then, they realize the movie industry can have expanded products to become more entertainment and
commercial. They start to combine the famous actor and visual characters and make the film Mary
Poppins. A few years later, they expend their industry and try different areas like DVD and some
theme park which is very popular nowadays.
2.2
Business, financial situation
Walt Disney had enough money to purchase famous companies like Pixar for 7.4 billion and
Marvel for 4 billion to attract more consumers and fans. In 2019, Walt Disney had a huge achievement
in the movie industry, they occupied 40% of America’s box office. In addition, they expand some
other services like DVD and so on. This made Walt Disney a great success in the entertainment
industry. However, the publisher hire many workers from the Walt industry and the contract said he
does not have the copyright to publish the movie, this leads to reduce the majority of workers from
the Walt Company, and as the result, it may cause a problem for increasing the unemployment rate.
2.3
Stock price
In 1968, the Walt Disney company remain at 10 until 1986, at that time they have not made many
products or services just concentrate on the movie industry. According to the diagram, after 1986,
between 1992 to 2000, the theme park has open all around the world, after that the Disney theme park
received a lot of fans and attracts more consumers. Then between 2004 to 2022, they have a huge
increase during that time, the company starts to realize they have to purchase other competitors to
increase the areas of entertainment, which is reaching a peak at above 125. As we can see the
following data show a lot of investors invest in Disney because they found that they will have more
profit after a few years as they found Disney has many prospective to expand their original product-
movie.
Walt Disney transaction name is Post-IPO Debt, Investor has 1, Funding rounds is2, Total funding
account is approximately 11 billion US dollars, Number of investments is 50, Number of lead
investments is about 35 and Diversity investment is 5.
3.
Market and business strategies
The first is to increase network visibility. Disney will invite some celebrities or Internet celebrities
to carry out large-scale publicity to increase their popularity [5].
The second is to build a strong brand, and it starts with popularity. A strong brand can sell anything,
just like Disney's watches and clothing are now loved by their fans.
Third, many products need to be integrated, and adapting to society is also one of their strategies.
Because different countries have different religious beliefs and laws, they should adapt to the tastes
of urban people and make changes [6].
Fourth, Disney has very good translations. The languages in different countries are different. With
good translations, they can translate their movies better and gain fans.
Fifthly, Disney has many advertisements, which is one way to improve its popularity. Advertising
can let people know more about Disney, and the current situation of Disney has been pursued by
many young people, and it is a fashion behavior that people understand [7-9].
Sixth, Disney employees have a strong corporate culture and social responsibility. Disney's
corporate culture is to reduce the adverse impact on the community environment. This is why Disney
is famous.
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Seventh, consider the legal and cultural differences in the region. The culture of each country is
different. Disney needs to modify their films to conform to the local culture.
4.
SWOT analysis
4.1
Strength
Disney's advantage is that it has a good brand image. As Disney publishes some new products and
services has a strong impression and more popularity than other brands and the majority of people
will like it because the brand is Disney and this is the kind of fashion trend that most people are
following mentioned above, some reduce the impact on the environment, so it is very good for
people's view of Disney. In addition, the increase in tourism is also due to Disney, because many
people will choose to visit Disney during summer or winter vacation, so this is also very good for the
tourism industry [10].
4.2
Weakness
Disney's disadvantage is that every country has censorship, and it is very strict with the culture of
foreign countries. Therefore, foreign theme parks or films entering different countries have different
legal provisions and some prohibited things. The second is market crowding out, because, in some
countries, many film industries account for the proportion of their countries. More, the market share
will be occupied by most of the local film industry, so Disney does not have much advantage in this.
The third is a very large enterprise, and the risk is relatively high because once Disney invests in this
city, but fails to achieve the target profit, they will also lose money.
4.3
Opportunity
Their opportunity is that Disney can introduce private equity. The introduction of private equity is
to find some suitable investors and invest in Disney to solve some capital problems and management
team issues. This will make Disney develop better, open more overseas markets and increase their
profits. For example, some funds and charity programs may encourage people to go to Disney like
watch Disney movies or go to the Disney theme park to consume, because Disney has more
infrastructure or a better environment and new ideas compared to other brands. Doing more charity
work will increase their popularity and people will think Disney is a very good brand and may
consume more in Disney.
4.4
Threat
At the same time, there are also some great risks. For example, the pressure of competition is great,
because they do not have a large share in the market. For example, Disneyland is an entertainment
industry, and there are many other theme parks such as Universal Studios and Harry Potter are their
competitors. They need to make constant changes in the environment to attract more consumers.
Become their fans. Otherwise, some business inferences and financial analyses made by them are
useless. Therefore, there will be some great competitiveness and great pressure on Disney.
5.
Future suggestion
In the future, Disney can develop its own brokerage company and train artists to shoot Disney
films. This not only saves the cost of hiring actors but also opens a new field. What say is that more
fields can be developed, not only in the entertainment industry but also in furniture related to Disney,
so that their turnover can be higher. [8]The last point is that there are many ways to solve the problem.
Often, large companies will encounter a financial crisis or financial crisis. They should prepare more
plans to solve such problems, not only an emergency plan. They can consider the problems from
multiple perspectives, which will be more comprehensive [9-10].
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6.
Conclusion
This article is about the analysis of Walt Disney Company, and it includes some strategies that this
company use. A lot of research shows that marketing and business plan are all based on Walt Disney's
interest in cartoons in the first place and then his brave to try entertainment as the result he is a success.
His team can do many marketing plans like some advertisements and purchasing the competitor to
reduce the amount of peer pressure during that time.
A lot of research and find out that Disney company has a lot of choices and some expanded
products such as some amusement parks, some Disney clothes, and so on. However, although the
company has great popularity and is a well-known brand, it must share with other competitors,
especially in the foreign market. Disney may have the monopoly to increase the profit and expand a
lot more ranges of products and increase its effectiveness to people who consume Disney also,
different countries have different laws and beliefs, so Disney should change the taste of every single
country to ensure that they are profitable and be able to expand some other services in that country in
the future.
The data and some part of the article are not very completely researched because this analysis may
have many effective factors and some external effects have not thought about it such as some natural
disasters, which we cannot avoid it. So that will be an unsure factor in the future.
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