The company needs to do market research and keep innovating to meet the needs of consumer. Therefore, it is opportunity for the Walt Disney Company to expand products and invest in emerging markets. Finally, there is limited range of targeted audience group as targeted markets of company are mainly focused on children and youth Opportunities: Firstly, the Walt Disney Company has highly diversified products and service portfolio.
TOWS Strategic Alternatives Matrix assists the company in determining strategic alternatives by examining external opportunities and threats and how they compare to existing strengths and weaknesses of a company Fan and Wu, Therefore, it can conducive to reduce the business risks and enter new market to increase the revenue Ammons, Last, the Strategic and Tactical Acquisitions help the company to accelerate the global expansion and become the leader of its industry.
In term of business level strategy, it may be a division or production line that can be planned independently from the other units of the company, which focus on individual market and single industry.
Weakness As an international company, the cultural difference could be an obstructive element to run business successfully in each geographic segment Bailey and Harindranath, Furthermore, as development of technology, company may benefit from IT advance like designing mobile gaming with Disney characters to meet the new demands of customers.
In the meanwhile, the company also has to keep technical update to catch the technical advancement.
China has large population, which exists huge potential population consumption. For example, the same trademark can be used and Disney cartoon characters in television can be copied into clothing and stationery.
Growth of entertainment industries in emerging markets 2. It helps company to target market not only children and youth but adults. Moreover, the financial management is one of capacities. Cost advantage in India Threats 1.
Continuous Need For Technological Updates 5. As operation cost is high in company, it leads to low profits and earning rate.
For example, the revenue of North America is quite outstanding while there is a great loss of Disneyland in Europe Paris. Secondly, the Walt Disney Company has strong brand reputation. The functional level strategy encompasses a wide range of areas like human resources, marketing and sourcing Furrer, In the meanwhile, entertainment industry will be supported by sustainable tourism policy introduced in China as it can attract more tourists.
India has a cost advantage in terms of salary and overall cost of production. Negative Publicity Due to Unexpected Event 4. Secondly, as piracy is increasing, some companies copy the trademark and images of the Walt Disney for business purpose.
There are a number of opportunities in emerging markets like china and India whose entertainment industries is in growth Bakker, It states that the company is more concentrated on North American as it is based on native cultural but misunderstanding the consumption behavior of European.
Thirdly, the preferences and tastes of customers would be changed over time. Further expansion in new emerging economies 3.The Walt Disney Company And Pixar Inc Media Essay. Print Reference this is near perfect strategic fit for Disney and hence Pixar’s acquisition by Disney is justified.
If Walt Disney Corporation choose to go ahead with the acquisition diversification for Pixar and it would face stiff competition from large media conglomerates like.
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