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Marketing Strategy
Entrepreneurship
Walter Elias Disney was an American entrepreneur, animator, voice actor and film producer. A pioneer of the American animation industry, he introduced several developments in the production of cartoons. Walt Disney started in 1923 in the back of a small office occupied by Holly-Vermont Realty in Los Angeles. That is where Walt Disney and his brother Roy, produced a series of short live-action/animated films collectively called the Alice Comedies. In 1937 Disneys innovative first full-length animated would feature the now well-known Snow White and the Seven Dwarfs. In order to expand and meet the expectations of his audience which later led him to expand his studios to over 51 acres of land in Burbank. The American Multinational is the leader in not just the American entertainment industry but other countries as well. Walt Disney offers a diversified group of services that include live-action, theme parks, and television. Walt Disney currently operates in four business segments which include large mass income per segment, Consumer Products & Interactive Media with an income of $1.97 billion, Studio Entertainment with an income of $2.70 Billion, Parks and Resorts with an income of $3.29 billion, and Media Network being the highest with an income of $7.75 billion.
Strategic Reorganization of Walt Disney
In March 2018, Walt Disney introduced their Strategic Reorganization of Walt Disney. New Structure Consolidates the Companys Direct-to-Consumer Services, Technology and International Media Operations into a Single, Worldwide Business to Capitalize on Growth Opportunities Kevin Mayer named Chairman of the Direct-to-Consumer and International Segment. Bob Chapek was named Chairman of the Parks, Experiences, and Consumer Products Segment. Some of the executive leaders who bring tremendous experience, visionary thinking and a shared commitment to excellence, creativity, and innovation to the day-to-day operation of Walt Disney include Robert A. Iger (Chairman and Chief Executive Officer), Alan Bergman (Co-Chairman, of The Walt Disney Studios), Alan Braverman (Senior Executive Vice President, General Counsel and Secretary).
Primary segments
One of the primary segments of Walt Disney is children who are targeted especially through their animated cartoons, merchandise, and theme parks. However, Disney has such an influence on many lives that even adults become the target to their segments. Walt Disney offers services that are meant for all different age groups and that would allow Disney to use a differentiated target strategy to serve their large customer base. With Walt Disney being the second largest media company with such a high value it harvests a high share of heart and share of wallet in the industry.
Advertising and promotion
Walt Disney has a wide range of advertising and promotions. Disneys ownership of media networks such as ABC, Disney Channel, and ESPN is a strategy the company is using to market its brand to Americans. This includes a systematic approach to television advertising, as well as radio commercials, print, outdoor advertising, and mobile initiatives, promoting discounts on resorts, and family packages. To reach an older group such as teenagers, Disney Land came up with the idea to launch advergaming, which puts ad messages in online and video games. Disneys goal was to reach kids and teens directly and encourage them to urge their parents to visit a Disney park for the ultimate family experience.
SWOT Analysis (Strengths, Weaknesses, Opportunities, and Threats)
Strengths in the SWOT Analysis of Walt Disney would include their characters Disney reached their highest peak because of the characters that everyone adores. Mickey Mouse, Minnie Mouse, Goofy, Donald Duck, Ariel, Cinderella, and Snow White just to name a few are the main revenue generators for Walt Disney. Walt Disney wouldnt be who they are today if it werent for these characters and many other characters.
Some of the Weaknesses in the SWOT of Walt Disney would be that the company is missing out on the online market as all its presence is offline-Todays children prefer staying online than going out in the real world. Of course, thats harmful but thats how it is, right? Since children today prefer to be online, Warner Brothers decided to launch Pottermore, which is an online Harry Potter World. Being that there are many online games that are present today it is hard for Walt Disney to compete in that area which becomes a weakness for them.
Some of Walt Disneys opportunity advantages would be they could develop in other countries such as India, Brazil, and Argentina. With Disney moving into countries such as these it would not only allow these countries to enjoy the kingdom of Walt Disney, but it would also raise much revenue for not only Walt Disney, but for the country itself.
Many cartoons right now are considered threats right now for Walt Disney, such as Cars, and Monsters, Inc both are Pixar cartoons and many of Pixar and other competitors are currently drawing large groups towards them in the film sector of it. Another threat that Walt Disney faces are all the video games that children, teens and even adults indulge in such as Madden, Fortnite, and Apex Legends. These are all threats to Walt Disney, but with proper planning, and the introduction of new items such as video games Disney wouldnt be faced with these threats. Bootleg movies are another threat that Walt Disney is faced and they are starting to crack down on people who are selling bootleg copies of their cartoons, and movies. Disney has also cracked down on ticket holders who purchase souvenirs in the theme parks and resell them online through eBay and other online sites to make a few extra bucks. The Orange County Register reports that Disneyland is quietly revoking annual passes of guests who buy and resell souvenirs. By Walt Disney cracking down on people reselling their merchandise they are able to get control over this and eventually it wont be such a threat to them.
Economic Factors
Economic Factors that Impact The Walt Disney Company would be the Macro environment such as inflation rate, savings rate; interest rate, foreign exchange rate, and economic cycle determine the aggregate demand and aggregate investment in an economy. While micro environment factors such as competition norms impact the competitive advantage of the firm. The Walt Disney Company can use the countrys economic factors such as growth rate, and inflation, and the industrys economic indicators such as the Entertainment-Diversified industry growth rate, consumer spending, etc. to forecast the growth trajectory.
Globalization
While operating not only in America but overseas Walt Disney faces many global challenges of Global Strategy for media companies. In June Walt Disney opened its doors to consumers that are every bit as engaged in the Disney brand as their western counterparts. Disney had decided to invest significantly in China, considering that the price tag for the latest theme park was more than $4.05 billion dollars more than Disney paid for Lucas Films which is the owner of the Star Wars Brand. In 2012 Disney spends $4.24 billion dollars to purchase Marvel Entertainment. Even though Disneys Parks and Resorts segment of Disneys generates over twice as much as its Walt Disney Studios segment it still helps to underline the costs involved for the conglomerate in building the worlds most expensive theme park to date.
In conclusion, Walt Disney built a huge empire that is a model for other businesses. They have many business units that could generate large amounts of revenue. With an estimate worth over 85 billion dollars. Walt Disney has diversified its interests to continually provide profit to the business. If Disney can place some focus on the threats and weaknesses they face, it will give them more opportunities to expand into an even larger company. The expansion of possibly developing into other countries will also allow them to really grow and expose countries to their many ventures to experience the happiest place on earth. Disneyland, Walt Disney, and their characters have given so much happiness in the last few decades that people have forgotten that they are also a profit-making organization. Walt Disney is a strategic business and is a model to businesses striving to attain greatness. Walt Disney Company is an extremely competitive business that offers high-level fun and enjoyment for anyone that is willing to visit or invest in their products. They will continue to be a major supplier of joy, and this will allow them to continually provide an experience unlike no other.
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