Competitive Profile Matrix (CPM)

External Factor Evaluation (EFE) Matrix:

Internal Factor Evaluation (IFE) Matrix
Strategic Position and Action Evaluation
(SPACE) Matrix
Boston consulting group (BCG) matrix:

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Walt Disney Company Case

Study and Strategic Plan
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129649516-Walt-Disney-Report.docx
Home>Business & Finance homework help>Marketing homework help>Walt Disney
Company Case Study and Strategic Plan

Walt Disney case study Submitted to: Mr.Farrukh

Idrees Submitted by: Ali Husnaen & Muhammad
Waqas
Table of Contents
Introduction 3
Company Background 3
Brands of Walt Disney 4
Company Mission Statement 5
Objectives 5
Strategies 5
Internal Audit 4
Strengths 4
Weaknesses 6
Internal Factor Evaluation (IFE) Matrix 7
External Audit 7
Opportunities 7
Threats 8
External Factor Evaluation (EFE) Matrix 10
Strategic Analysis 10
Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix 10
Strategic Position and Action Evaluation (SPACE) Matrix 12
Grand Strategy Matrix 15
Recommendations 19
Sources 23

Introduction:
Walt Disney Company is a diversified international
company with operations in four business
segments: Media Networks, Parks and Resorts,
Studio Entertainment and Consumer Products.
They employ over 150,000 people in over 40
countries and had revenues of approximately
$40.89 billion in 2011
Walter Elias
Walter Elias "Walt" Disney (December 5, 1901 –
December 15, 1966) was an American film
producer, director, screenwriter, voice actor,
animator, entrepreneur, entertainer, international
icon and philanthropist, well known for his
influence in the field of entertainment during the
20th century.

“I do not like to repeat successes; I like to go on to

other things.”
“Walt Disney”
He was co-founder of Walt Disney Productions,
which later became one of the best-known motion
picture producers in the world. The corporation is
now known as The Walt Disney Company and
had annual revenue of approximately US$40.89
billion in the 2011
Disney itself was a great film producer and a
popular showman and also an innovator in
cartoons and theme park design. He and his staff
created some of the world's most famous fictional
characters including Mickey Mouse, for whom
Disney himself provided his voice.

Walt Disney brands and portfolios

Disney media networks Disney parks and
resorts Disney studios

Company Mission Statement

The mission statement is defined as a company’s
“statement of purpose.” The current mission
statement for the Walt Disney Company is:
“To be the world’s leading producers and
providers of amusement and information. Using
our portfolio of brands to differentiate our content,
services and consumer products, we track for to
develop the most creative, innovative and
profitable entertainment experiences and related
products in the world.”
Vision
Walt Disney strives to be the world’s most famous
entertainment company by creating an amazing
experience for individual of all ages.
Objectives
Objectives are the goals which an organization
wants to achieve in future. Objectives can be both
long term and short term. Organizations design
their objectives according to economic and
competitive climate.
They design their compensation programs to
achieve the following objectives in the context of
the Company’s large and complex business:
· Support the Company’s business strategy and
business plan by clearly communicating what is
expected of executives with respect to goals and
results and by rewarding achievement;
· Attract, motivate, and retain executives with
superior talent; and
· Align incentive compensation with performance
measures that are directly related to the
Company’s financial goals and creation of
shareholder value.
The Walt Disney Company mostly does not
publish its corporate objectives.
Strategies
Strategies are the tools through which company
attain its objectives. We can also say strategies
are the path to achieve objectives.
Strategy is the course of action on which an
organization decides to get on affects all divisions
and aspects of said organization. Strategies
should be formulated and implemented only once
all internal and external factors are assessed.
Only then can a strategy be deemed “safe” for a
company for implementation. So Walt Disney will
make its strategies after assessing its internal and
external factors.
Disney Goal
At Disney, we believe being a good corporate
citizen is the right thing to do: for our consumers
and guests, our employees, and our businesses.
It makes our company a desirable place to work,
reinforces the attractiveness of our brands and
entertainment, and strengthens our bonds with
families.
Our goal is to achieve exceptional performance by
embedding citizenship into all of our daily
decisions and actions, guided by three core
principles.
Core Principles
Act
Act and create in an ethical manner and consider
the consequences of our decisions on people and
the planet
Champion
Champion the happiness and well-being of kids
and families in our endeavors
Inspire
Inspire kids and families to make a lasting,
positive change in the world
Disney competitors:
These are some major competitors of Walt Disney
· News Corporation,
· Viacom
· NBC Universal
· Times Warner
Competitive Profile Matrix (CPM)
Before designing any strategy it is necessary to
see the strategies and performance of our
competitors. We evaluate the competitive position
of our competitors and than make the strategies
for the future. So this is the competitive profile
matrix which will show the position of our
competitors with respect to us like News and Time
Warner.
Corporations Walt Disney Time Warner News
Critical success factors Weight Rating Score Rating Score Rating Score
Advertising 0.4 2 0.20 4 0.8 3 0.6
Product Quality 0.3 3 0.10 3 0.3 4 0.4
Price Competitiveness 0.1 2 0.05 3 0.45 2 0.1
Management 0.3 3 0.1 4 0.4 3 0.3
Financial Position 0.4 4 0.10 3 0.3 4 0.4
Customer Loyalty 0.45 3 0.15 2 0.3 3 0.45
Global Expansion 0.6 3 0.20 4 0.8 3 0.6
Market Share 0.1 2 0.2 3 0.3 3 0.3
2.75 1 3.65 3.15

External audit:
Opportunities:
· Economic conditions prevailing in USA reflect
moderate position.
· Walt Disney is practically ready to internalize the
social shift.
· Walt Disney is implementing all the related laws
regarding entertainment industry.
· Opportunity to renovate attractions in Park and
Resorts Division due to increase in profit
· Growth from cable and satellite operators
creating even more possibilities for Disney to
make money with their network
· Prospect to build more theme park and resorts
worldwide
· Openings in other areas of the travel business
· Opportunity to invest in building theme parks to
satisfy the increase in guest spending, theme park
attendance, and hotel occupancy
· Target new costumers group
· USA is maintaining favorable strategic directions
towards entertainment industry.
· Walt Disney is proactive in both sensing &
implementing the new technology.
· International components for Walt Disney
actually seem favorable. Therefore new markets
should be searched and taken into consideration
in foreign developed countries like Malaysia,
Singapore, and Thailand etc.
Threats:
· The entertainment is experiencing social shift
whereby members of the society are seeking out
value, more relaxation activities and have become
knowledgeable also.
· Entertainment industry is subject to various
legislations which a pass at reasonable rapidity.
· The formal policies of USA are not based on
objective analysis and judgment.
· Technologies advancement shift is quite
significant resulting in impact on entertainment
industry.
· Lasting economic recession leading to slow
growth rate
· High unemployment rate
· Park and Resorts Divisions’ success is
unpredictable because of exchange rate
fluctuations; travel industry trends; amount of
available leisure time; oil and transportation
prices; and weather patterns and seasonality.
· Changes in technology leads customers to
stream online instead of buying DVD.
· Online streaming makes Disney defenseless to
piracy and violation of its intellectual property.
· Retail distribution business are influenced by
seasonal consumer purchasing behavior and by
the timing and performance of animated theatrical
release
· Increase in labor cost which will have a noticed
impact in Walt-Disney expenses due to their large
amount of employee.
External Factor Evaluation (EFE) Matrix:
External factor evaluation matrix is a tool for
summarization and evaluation of the major
opportunities and threats in the functional areas of
an organization. In this we write opportunities and
threats according to their importance and then
rate them by different numbers according to their
value in case of that organization. After assigning
weights and rating we multiply them and find out
weighted average score. Then we use these
scores for making strategies.
Rating is given on 1-4, where rating (1) indicates
major weaknesses (2) indicates miner
weaknesses (3) indicates miner strengths and (4)
indicates major strengths
EFE Matrix of Walt Disney
Key External Weighted Factors Score Weight Rating
Opportunities
· Spend 1.1bil in 2008-20011 to revitalize the Disney California Adventure
0.06 4 0.24
in Anaheim,California.
· Disney and Citadel announced an agreement to merge with ABC radio
0.09 3 0.27
business.
· Disney opened Grand Floridian Beach and Carribean Beach Resorts that
0.06 2 0.12
include three new gated attractions.
· Parks and Resorts division increased 10% in 2006 to 9.9 billion. Due to
0.09 3 0.27
domestic and internationals resorts.
· Buena Vista Games has reached a sales growth to an increase of 14%. 0.07 3 0.21
· Disney’s 50th anniversary celebration at its parks and resorts increased
0.07 4 0.28
attendance and hotel occupancy.
Threats 0.10 4 0.40
· Time Warner is a major rival to Disney Company
· This industry is dominated by conglomerates Walt Disney, Time Warner
0.08 2 0.16
Inc., New York Times, News Corp., and CBS Corporation.
· Disney also compete with satellite providers such as Direct TV 0.06 2 0.12
· Disney competes with other advertising media such as Newspapers,
0.08 3 0.24
Billboards, Internet and magazine.
· Disney’s theme park and resorts really depends on travel trends Seasons
0.08 3 0.24
and also the security to travel
· Competitors are consolidating and spending aggressively 0.08 3 0.24
Total 2.79 1

Internal audit:
Strengths:
· Company has good relationship with the
suppliers.
· Company is also maintaining healthy
relationship with collective bargaining agent
(CBR).
· Its One of the most recognizable entertainment
company in the world
· They have Strong advertising
· Wide and unique portfolio of the company
· Innovative entertainment business
· Strong customer service
· Strong Media Networks and Broadcasting
division
· Disney owns a variety of companies, which
allows them to generate more profits from
different industry such as Media Networks and
Broadcasting, Park and Resorts, Studio
Entertainment and Disney Consumer Products
· Disney is the largest worldwide licensor of
character-based merchandise and producer of
children’s film-related products based on retail
sales
· Walt Disney is financially strong.
· The operational system is inclusive of
procedures, processes & operations management
reflects the element of that the company is
meeting the desired standards.
· Walt Disney is capable of producing new
Products and Services in a short span of time.
Weaknesses:
· Walt Disney needs more rigorous analysis in
understanding the consumer behavior.
· Walt Disney needs improvement in tracking the
changes in cultural values.
· Walt Disney also does need strategic
improvement in conducting the segmentation and
applying the more soft techniques namely
psychographic and lifestyle.
· The mission of the company strategic directions
and long term objectives needs improvement.
· H.R needs improvement. Training and
development programs should be done and hiring
and selection criteria should also be taken into
account of rectification.
· Marketing management needs improvement.
Internal Factor Evaluation (IFE) Matrix
Internal factor evaluation matrix is a tool for
summarization and evaluation of the major
strengths and weaknesses in the functional areas
of an organization. In this we write the internal
factors our strengths and weaknesses according
to their importance and then rate them by different
numbers according to their value in case of that
organization. After assigning weights and rating
we multiply them and find out weighted average
score. Then we use these scores for making
strategies.
IFE Matrix of Walt Disney
Key Internal Weighted factors Weight Rating Score
Strengths
· Disney owns ABC Television Network 0.08 2 0.16
· Disney’s net revenue climbed 5.2% to 35.5 billion 0.10 4 0.4
· Walt Disney company operates using a strategic business unit(SBU) 0.08 4 0.32
· Disney WABC-TV ranked as the 1st in television market ranking In Ney
0.10 3 0.3
York.
· Disney unveiled Disney Xtreme Digital which competes against
0.09 2 0.18
Myspace.
· 6. Parks and Resorts division increased 10% in 2006 to 9.9 billion. Due
0.10 3 0.3
to domestic and internationals resorts.
Weaknesses
· Disney revenues from Studio Entertainment and Consumer product
0.08 2 0.16
segment decreased by 1%
· Hong Kong Disneyland has been struggling because the company Might
0.08 3 0.24
have to persuade lenders to refinance the debt.
· Disney has lost the competitiveness on consumers products to
0.12 4 0.28
Nickelodeon as they had launch SpongeBob and it’s a hit.
· Disney has smaller industry segments in the broadcasting industry as
0.09 3 0.27
news corp. operates in eight industry segments.
· The theme park and resorts business experiences fluctuations from the
0.08 4 0.32
seasonal Nature of vacation travel and local entertainment excursions.
Total 1 2.93

Rating is given on 1-4, where rating (1) indicates

major weaknesses (2) indicates miner
weaknesses (3) indicates miner strengths and (4)
indicates major strengths
SWOT analysis:
Strengths Weaknesses
· Worldwide known brand. · Costs of operation are high.
· Offers their customers high quality · Company's name is still highly associated with a
products and services. specific target audience - children.
· Is strongly present in several branches of · Creative and innovative ideas are required to bring
the entertainment industry. and retain customers.
Opportunities Threats
· Strong competitors in the entertainment industry
· Room to develop the market in emergent
countries. · High competition on finding and affording the
most creative human resources.
· Expansion into different segments
· Lack of protection of Intellectual property in many
· Develop more attractions for theme parks.
non-developed countries.

Strengths-Weaknesses-Opportunities-Threats
(SWOT) Matrix
The Strengths-Weaknesses-Opportunities-
Threats (SWOT) Analysis is a strategic
management tool that affords analysts the
opportunity to match internal and external factors
for strategy development. The idea is that positive
advances can be made by taking advantages of
internal factors and having proper responses to
external ones. The SWOT Matrix matches
Strengths and Weaknesses with Opportunities or
Threats. Thus four possible types of strategies are
possible: Strength-Opportunities Strategies (SO
Strategies), Weaknesses-Opportunity Strategies
(WO Strategies), Strength-Threats (ST
Strategies), and lastly Weakness-Threats
Strategies (WT Strategies).
The SWOT Matrix for The Walt Disney Company
is included below.
 · WEAKNESSES
· STRENGTHS
1. Studio Entertainment and
1. One of the most familiar Disney Consumer Products
an amusement company in divisions have been
the world. experiencing declining
2. Innovative entertainment revenue for the last 3 years.
business. 2. Disney as a narrow target
3. Strong Media Networks market.
and Broadcasting division. 3. Disney as such a diversify
4. Disney is the largest product range that it can
worldwide licensor of reduce efficiency and lead to
character-based merchandise a lack of strategic focus.
and producer of children’s 4. Walt Disney’s Park and
film-related products based Resorts are not easily
on retail sales. accessible which leads people
5. Strong advertising. to associate Disney World
with a costly trip.
· OPPORTUNITIES · SO-STRATEGIES · WO- STRATEGIES
1. Opportunity to build & renovate 1. The park & resorts division 1. Create block buster motion
attractions in Park and Resorts is experiencing profit. picture movies with the 3D
division to increase in profit. Therefore the money could option, which is the new
be used to innovate some trend in movie theaters. (W1,
2. Growth from cable and satellite
attraction. (O1, S1, S2) O3)
operators creating even more
potential for Disney to make money 2. Sell Disney products at 2. Design parks and resorts
with their network. more places at not only with a new modern strategy,
Disney stores. Especially which will find a better
3. Target new costumers group.
with Disney’s with highly balance between ages.(W2,
4. Prospect to build more theme park recognized characters by O3, W3)
and resorts worldwide. children.(02, S2, S3, S4)
3. Build parks and resorts in
5. Openings in other areas of the 3. Build more accessible worldwide to be more
travel business. resorts internationally since accessible and allow people
there is an increase in guest to enjoy a one day experience
6. Opportunity to invest in building spending, theme park rather than a week long trip.
theme parks to satisfy the increase in attendance and hotel (W4, O4, O6)
guest spending, theme park occupancy. (O4, O5, O6, S1,
attendance, and hotel occupancy. S2)
4. Better advertise of other
parks of Walt Disney world
such as EPCOT resort, in
order to break the reputation
that Disney is only a magic
 kingdom and appeals to
children. (S5, O3).
· THREATS
1. Lasting economic recession
leading to slow growth rate.
2. Park and Resorts Divisions’ · ST- STRATEGIES
success is unpredictable because of · WT-STRATEGIES
1. Offer lower fees for
exchange rate fluctuations; travel
entrance into theme parks and 1. Build an indoor park and
industry trends; amount of available resort on the north east side
discounts on onsite hotel
leisure time; oil and transportation United States in order to be
prices. (T2, T1, S1)
prices; and weather patterns and more accessible and to
seasonality. 2. Have a movie rental prevent closure with
website with high definition unpredictability of weather.
3. Changes in technology leads
and high speed movies for (W4, T1)
customers to stream online instead
low prices. (T3, T4, S3)
of buying DVD.
4. Online streaming makes Disney
vulnerable to piracy and violation of
its intellectual property.

Strategic Position and Action Evaluation

(SPACE) Matrix
This is also a strategy making tool. The SPACE
Matrix is a four-quadrant graphical axis and it
indicates whether an organization should follow
conservative, aggressive, defensive, or
competitive strategic strategies. The graph is
charted based on the average scores of ratings
given to four type’s positions like:
· Organizations Financial Position (FP)
· Stability Position (SP),
· Competitive Position (CP),
· Industry Position (IP).
Financial Position (FP)
The financial position for The Walt Disney
Company scored an averaged rating 3.5 out or a
possible 7 (with 7 being the best possible score
and 1 being the worst possible score.) this tells
marginal increase in the current ratio from 2007 to
2008 and a meager 12% increase in gross
revenues in the last three reported years. Due to
downfall in economy ratio is below but in future
there are chances for Walt Disney to be in better
position.
Competitive Position (CP)
The competitive position of The Walt Disney
Company is nothing short of stellar. The Company
scored an average rating of -1.75 out of 7 (with -1
being the best possible score and -7 being the
worst possible score.) The fact that Disney’s
product life cycle has literally been around for
almost a century is very significant in determining
the Company’s competitive position. Couple with
that the Organization’s almost cult-like fan base
and the sheer size of the Company and The Walt
Disney Company has scored an almost perfect
score in the competitive position test.
Stability Position (SP)
Stability position is like their financial position.
Company has good score in high barriers but it’s
less in market risk. It’s the fact that they need
fresh content and great innovation to be stable in
the market. So company scored an average rating
of -3.25 out of -7 (with -1 being the best possible
score and -7 being the worst possible score.)
Industry Position (IP)
Walt Disney has high score in their industry
position. In reusing their past portfolio they have
high score. The company leverage position also
has been increased in last few years. So The Walt
Disney Company scored an average rating of
5.25 out of 7 (with 7 being the best possible score
and 1 being the worst possible score.)
SPACE Matrix

Grand Strategy Matrix

For development of alternative strategies analysts
use grand strategy as a tool. The Grand Strategy
Matrix is shown in four-quadrant graph. The y-axis
of the graph represents market growth, with
positive y -figures representing rapid market
growth and negative y- figures representing slow
market growth. In opposition, the x-axis
represents competitive position, with positive x-
figures representing strong competitive position
and negative x- figures representing weak
competitive position.
All companies will fall somewhere on the graph
and, once positioned, they can make decisions
based on the suggested strategies for the
company.
The Walt Disney Company falls within Quadrant I
because company is strong within their markets
and growing stronger. The competitive position of
the company is strong. Because of past success,
current positions, and expectantly spectacular
future, the company falls within the first quadrant
on the Grand Strategy Matrix.
The Grand Strategy Matrix for The Walt Disney
Company is included below

Boston consulting group (BCG) matrix:

This is the matrix which tells us about the different
products and portfolios of organization. Which one
is stronger and which is not. According to my
research and observation I will keep these brands
in following quadrants.
Stars:
I will put media networks and broadcasting in
stars because they have good growth and high
profits in it. In one of the exhibits provided its
shown that in year 2006 income is $3610000000
but in year 2007 it increases to $4284000000 and
market share is also high, i.e. Walt Disney owns
number of diversified media channels.
Question mark:
I have observed in previous few years that market
share of studio entertainment has become low. So
I will put it in the question mark. There is no surety
about it yet that it will increase in next years or
not.
Cash cow:
I will put parks and resorts in cash cow because
they have no growth in it but still its giving 25% of
its profits that’s why they have less focus on it.
There profits has been decreased because in
2006 & 7 it was more.
Pets/Dogs:
Finally, in my opinion, Consumer Products of Walt
Disney are pets/dogs because the growth in this
business unit is low and also the market share is
low. Also, recently Walt Disney sold off its stores
under a franchising agreement.

Recommendation:
After seeing all matrix and past strategies of the
Walt Disney I will recommend these strategies to
Walt Disney in order to make more profits and
increasing market share.
· As the owner of Walt Disney said we are not
going to stop. I will recommend Walt Disney to
increase their product line. Through this they can
increase there market share. By increasing their
market share economies downfall will not effect
badly on the profits of organization.
· Through modern technology people can use
easily their product illegally. So Walt Disney has
to be more focused on security for their product.
They should be in front of technology.
· I will also recommend for market development.
For example they are earning more profits from
USA than any other country. So why not from
other countries they should focus on that aspect.
· They should do customers need analysis before
lunching a new product. Culture is very important
thing so they should make product according to
culture and life styles people in different market
segments.
· Strong distribution channel is necessary to keep
customers loyal with you. So I will recommend
Walt Disney to make their own stores in different
countries to be close to the customers.
Sources:
Plagiarism report:
Www. plagiarism-detect .com
Date: 14.1.2013
Words: 2717
Plagiarized sources: 9
Plagiarized: 2%
http://www.slideshare.net/azierahrashid/walt-
disney-ppt
Plagiarized from source: 2%
1. renovate attractions in Park and Resorts
Division due to increase
2. the increase in guest spending, theme park
attendance, and hotel
3. and Resorts Divisions’ success is unpredictable
because of exchange rate fluctuations
4. travel industry trends; amount of available
leisure time; oil and transportation prices
5. by seasonal consumer purchasing behavior
and by the timing and performance
http://pages.stern.nyu.edu/~adamodar/pdfiles/acf2
E/disneyannual.htm
plagiarised from source: 1%
1. travel industry trends; amount of available
leisure time; oil and transportation prices
2. by seasonal consumer purchasing behavior
and by the timing and performance
http://www.sec.gov/Archives/edgar/data/1001039/
000089843001503823/d10k.txt
plagiarised from source: 1%
1. travel industry trends; amount of available
leisure time; oil and transportation prices
2. by seasonal consumer purchasing behavior
and by the timing and performance
http://www.sec.gov/Archives/edgar/data/1001039/
000119312511321340/d232174d10k.htm
plagiarised from source: 1%
1. travel industry trends; amount of available
leisure time; oil and transportation prices
2. by seasonal consumer purchasing behavior
and by the timing and performance
http://thewaltdisneycompany.com/sites/default/file
s/reports/q4-fy12-form-10k.pdf
plagiarised from source: >1%
1. travel industry trends; amount of available
leisure time; oil and transportation prices
http://seekingalpha.com/symbol/dis/description
plagiarised from source: >1%
1. travel industry trends; amount of available
leisure time; oil and transportation prices
http://corporate.disney.go.com/media/investors/ne
w_segmentation_DIMG_090204.pdf
plagiarised from source: >1%
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