Walt Disney Company Analysis Report

            Walt Disney is an American expanded global mass media and show business corporation with the Walt Disney Studios as its head office located in Burbank, California. For about 92 years, Walt Disney has throughout numbers of modifications within its business. The Walt Disney Company has been listed by Forbes with its market capital at $238.1billion (forbes.com, n.d.). This paper aims to detail the business-level strategies of the company and how the company utilizes its primary competencies to create and vend its products in the market place. This paper also explains about the corporate-level strategies of Walt Disney, the competitive environment, and also the market cycles that surrounding the company. In the end of the paper, the conclusion made to finalized the entire analysis of the company as well.

Business-Level Strategies of Walt Disney Company

            A business-level strategy defines as an assimilated and synchronized set up of obligations and activities that the company utilizes to get a competitive benefit by taking the advantage of its main competencies in particular market place (Ireland, Hoskisson, & Hitt, 2012). The Walt Disney Company was using a unique differentiation in its business operations. Walt Disney was presenting the unique presentation within its show business and entertainment products and services to shape on the customer’s value. This business strategy of Walt Disney was quite successful and applied for numbers of years within the company. Based on the annual report of the company in 2014, Walt Disney endorsed their constant success within three main strategic priorities; the supreme creativity, the advanced technology, and also the international expansion. Walt Disney Company’s three main priorities associate “The Integrated Cost Leadership-Differentiation Strategy,” which is a business-level strategy in which the differentiated products are provided within low cost to the market place. This business-level strategy gives the directions for the company to improve its competent and efficient business operations while also offering the unique and different products to the customers as well (Hitt, Ireland, & Hoskisson, 2008). “The Integrated Cost Leadership-Differentiation Strategy” is basically a mixture of “The Cost Leadership Strategy” strategy and “The Differentiation Strategy.”

            “The Cost Leadership Strategy” which based on creating and enhancing the new and current processes (John R. Schermerhorn, 2010), has made Walt Disney to become more competent by providing a competitive benefit for the company. One of the unique experiences that The Walt Disney Company delivers is that, the company seems to not spare on any expenses to provide the studios, theme parks, or other things for its productions. But actually, if we take a look at behind the scenes, the company has always made a very well-organized and competent operations for its productions. These competent operations of Walt Disney interpret into the cost savings for the company and perceived the customers’ value. Then the company uses the amount from those cost savings to build and develop some innovative attractions for its current theme parks, produce on new TV series, programs, or movies, and also extend its theme parks as well as its resort universally, which is also mentioned as one of its main priorities.

            In the other hand, “The Differentiation Strategy” described as a strategy that based on growing and producing the products and services that the consumers identify as being unique in methods and also essential for them (Ahlstrom & Bruton, 2009). Every day, thousand numbers of customers visit the Disney theme parks and its resorts to get a unique and exciting experience that the company offered.

            Therefore, “The Integrated Cost Leadership-Differentiation Strategy”really benefit the Walt Disney Company since it offers an ideal strategy for the company to use the creativity and innovation to improve the competent operations and also the processes that create the cost savings for the company. From here, The Walt Disney Company could use those cost savings to make a further development for its business as well as its universal expansion, while also providing the idea that the company does not spare any expenses. Thus, this is actually what gives a competitive advantage for The Walt Disney Company in the market industry.

Corporate-Level Strategies of Walt Disney Company

            A corporate-level strategy defines as the definite actions which engaged by a company to get a competitive benefit by choosing and handling a set of diverse business contending in several market industries (Furrer, 2016). The Walt Disney Company known to have at least 28 business which involved in five business sectors; studio entertainment, media networks, parks and resorts, Disney Interactive, and also Disney’s customer products. The company is applying the combination of “The Related Constrained Diversification” and “The Related Linked Diversification” strategies. We can see the use of “The Related Constrained Diversification” by the company with the proof of the companies that Disney owned such as Disney Music Group or also Disney ABC Television. The links among these two companies with Walt Disney are could be considered as direct link and also categorized as the related constrained diversified. In the other hand, an instance for the use of “The Related Linked Diversification” strategy could be seen from the ownership of ESPN and also Touchstone Pictures by Walt Disney. There are claimed to be smaller mutual assets between these two companies with Walt Disney. In the other hand, Walt Disney could share further knowledge and primary competencies with those two companies. Walt Disney seems to presenting a modest of high-level of diversification along with its related constrained as well as its related linked business. This high-level diversification conducts for two main roles; rises the value of the company itself and secures the company from the loss in case if any of the companies that owned by Walt Disney has to suffer for any loss. This case was appeared in the year of 2013, when Walt Disney was still listed with its universal profit for $45.05 billion, while the Disney Interactive was reported to suffer the loss around $87 million. Both Disney Studio Entertainment and Disney Interactive had to suffer the loss in profit during March 2015. In the other hand, The Walt Disney Company for overall, has made an amazing revenue. This has shown the indication that Walt Disney has the suitable diversity to secure the company in case if some of its sectors suffer for the loss profit. Thus, the way that The Walt Disney Company made it to increase its profit while also make difficult ways for the competitors to exist in the market industry has proven that “The Related Constrained Diversification” and “The Related Linked Diversification” strategies are the best strategies to be used by the company so far.

Competitive Environment of Walt Disney Company

            Even though the Walt Disney Company has been proven as a well-diversified company, but there is always a room for competitors. The competitors for the company are mentioned such as Twenty-First Century Fox, Time Warner, and also Comcast-NBC. The Comcast-NBC even has encountered the sector of theme park and resorts with opening some innovative themed such as Wizarding World of Harry Potter which attracted many customers. Therefore, Comcast-NBC could be consider as the most significant competitor for Walt Disney. In the other hand, Twenty-First Century Fox also has created its theme park which in the year of 2016 as well. In fact, in the theme park and resort sector, Walt Disney seems already set up the standard for the competitors to follow. The competitors companies really work out in the theme park and resorts sector to win the tough competition with Walt Disney in the market industry. Both Walt Disney and Comcast-NBC appear to use the same form of “The Integrated Cost Leadership-Differentiation Strategy” strategy. Both of them are figuring out the most efficient approach to functioning their business operations while also offering a value perception to their customers as well. However, since Walt Disney is already famous on the eyes of public for various milestones, the company could improve the creativity and innovation by using the support of the latest technology will able to make the company still exist and even improve its future development as well (Gamble, Peteraf, & Thompson, 2014).

Market Cycles of Walt Disney Company

            A slow cycle market which defined as a duration of time in which the competitive benefits of a company are secured and protected from getting duplicated and the high cost of duplication (Mohr, Sengupta, & Slater, 2010) seems to be demonstrated from the business operations by Walt Disney. For instance, the entire characters which produced by Walt Disney such as Mickey Mouse, Donald Duck, Minnie Mouse, and also Goofy, they all are secured and protected by the copyright, and also the patent and trademark laws. In the other hand, within a fast cycle market which the competitive benefits of the company are not secured and protected from getting duplicated and also the cost of duplication is claimed to be cheap, then Walt Disney might not able to make the copyright or the patent and trademark laws to secure and protect their products. This will make it easier for other competitors to duplicate their products. For this reason, being in a slow cycle market is giving a huge difference for Walt Disney in performing their business, and also to get exist in the market industry as well. Therefore, The Walt Disney Company needs to maintain its business as well as its corporate strategies to support the company on falling to the fast cycle market.

Conclusion on Walt Disney Company

The Walt Disney Company which has famous for about 92 years in the entertainment industry has proven how the company made to survive in the tough competition. The success of the company is supported by the appropriate and suitable “The Integrated Cost Leadership-Differentiation Strategy” business-level strategy that benefit The Walt Disney Company since the strategy offers an ideal strategy for the company to use the creativity and innovation to improve the competent operations and also the processes that create the cost savings for the company. The company is also applying the combination of “The Related Constrained Diversification” and “The Related Linked Diversification” strategies into its business operations practices. The practice of “The Related Constrained Diversification” by the Walt Disney is proven with some companies that Disney owned such as Disney Music Group or also Disney ABC Television. Meanwhile, the practice of “The Related Linked Diversification” strategy presented from the ownership of ESPN and also Touchstone Pictures by Walt Disney. These two corporate-level strategies have made the company able to increase its profit while also make difficult ways for the competitors to exist in the market industry.

However, Walt Disney still has to face the tough competition in the entertainment industry. Many competitors have come and take part in the showbiz business. One of them that considered to be the most significant competitor for Walt Disney is mentioned as Comcast-NBC which appeared to use the same form of “The Integrated Cost Leadership-Differentiation Strategy” strategy. The good thing is, Walt Disney has being present in the slow cycle market which secured and protected its product with copyrights or patent and trademark laws. These two regulations shelter the famous products of Walt Disney such as Mickey Mouse, Donald Duck, and other product from getting duplicated by other competitors. The Walt Disney Company now just needs to make sure that the company will able to maintain its business as well as its corporate strategies to stay exist in the entertainment industry, and also for the future development of the company as well.