Walt Disney Organization Overview and Analysis Paper Example

Walt Disney is an international media company that is based in Burbank, California and started by Disney Brothers. The organization experienced exponential growth and declines over the years as its operating environment changed over time. The organization has been able to overcome key challenges to continue being a key entertainment organization earning a total of 55.6 billion dollars in revenue in 2016. Customers in the global economy are increasing rapidly due to the geographical diversification of the organization theme parks and the spread of internet access worldwide. Disney World is responding proactively to this change in customer base, and the organization has diversification and acquisition plans for expansion into the emerging global marketplace.

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Disney has increased the organization vertical integration throughout the years with their acquisitions of emerging production organizations and products in many entertainment sectors.

Competition

Disney world faces extreme competition from other entertainment companies in the world such as the Time Warner, Touchstone Pictures, Miramax Films, Hollywood Pictures and Buena Vista International. The companies compete for the same audience through innovation and technological inventions. Through strategic management, the organization has been able to overcome competition and continue to make profits.

New entrants

The ease of entry is low in the industry as a whole, but due to the emerging technology, there is a broad range of segment new entrants. Currently, the most threat from new entrants in the video distribution is from large corporations such as Apple Inc. and Google Inc. The top market leaders such as Disney world and Hollywood are conglomerate corporations which offer a broad range of entertainment products in media networks and film making which makes it difficult for new entrants.

End Users/Buyers

Walt Disney has been able to transform the entertainment industry through its creativity and globalization of its products touching different cultures and market segments. The customers have powers because a large number of consumers are necessary to make the Walt Disney Company's operations run smoothly. The buyers are a global community who it is increasingly becoming easy to reach through technological advancement and innovation that has reduced the world the world into a global village. The globalization of Disney world with affiliates in Japan and Paris has increased variety and ability to reach different cultures with unique cultural specific products.

Suppliers

Walter Disney believe that supplier diversity is a significant source of strategic advantage for the organization. Diversity has created an environment of the range of opinions and ideas which continue to be shared to create a broad range of experience and entertainment to the consumers around the globe. The major Disney world suppliers include Disneyland, Tokyo Disney Resort, and Walt Disney world.

Substitutes and complimentary products

Substitutes and complimentary products are significant market problems that the organization faces in a globalized market. The growing technological advancement and innovation have led to the creation of substitute products from Times Warner which is a key competitor and creator of competitive complimentary products.

2. Corporate strategy employed by Disney world

A corporate strategy is an overall plan used by an organization to advance in a competitive market. Disney world has been able to survive in a competitive market through an aggressive corporate strategy that has enabled the company to absorb other competitive organizations to reduce competition as well as the creation of franchises which increases the organization market strategy. The franchise approach has enabled the organization to diversify into multiple parts of the business. Disney franchises have created a virtuous cycle of movie drive merchandise sakes, and theme park visits which have increased interest in other organization products. Diversification is experienced both horizontally and vertically. In this case, the films can be turned into comics that in turn promote the films. Comics in themselves are printed as books and Walt Disney magazine which is key to advertising the organization based films. Geographical diversification is experienced through the creation of Theme Parks in Tokyo, Japan, and Paris, in France.

3. Benefits and costs of diversification in Disney world

The diversification of Disney world has played a significant role in the success of the organization. Diversification and integration of the organization products have created a variety which has created a virtuous cycle of products that advertise each other. Diversification has increased the organization market command hence reducing competition and increasing the relevancy of the organization products. Geographical diversification has increased the organization cultural diversity helping the organization reach different markets in Europe, Asia, and Africa. Regarding cost, the diversity of the organization products has increased income streams for the organization as well as the creation of growth and opportunities for the organization. The organization has five segments which include, media, parks, resorts, studio entertainment and interactive gaming products. Revenue diversification of the organization ensures that the risk is well spread by creating a complex competitive factor and reducing individual product risks.

4. Which expansion modes has Disney utilized to implement its corporate strategy?

Disney uses a franchise focused growth with different franchises pooling together in the contribution of the organization wealth. Through its franchise based approach, the organization has been able to monetize its intellectual properties across its product segments and geographical locations. Disney sells content to third parties which have increased the organization revenue and growth. Disney is positioned in a multiplatform business of content distribution. The acquisition of other media organizations helps the organization to increase its market control and revenues.