Know about the strengths, weaknesses, opportunities and threats of Disney. Get a detailed insight with the SWOT Analysis of Disney. Also learn about the product portfolio and Pestle factors shaping the growth of the company. Get to know the stakeholder's hierarchy in Walt Disney . The presentation is meant to provide complete overview of the company so that students can use it while undertaking case study analysis.
2. About the Company
Founded by Walt Disney in 1923, the Walt Disney Company is synonymous to animation and
entertainment. However, the brand - that gave us a happy-go-lucky friend in Mickey Mouse
and our lunchtime companions - has a lot to offer other than their media and entertainment
units. Besides the media production studios and parks and resorts that spread worldwide, the
brand has a separate entity for consumer products and official merchandise.
The Walt Disney Consumers Products Incorporation, a segment of the Walt Disney Company,
is the retailing subsidiary of Disney Parks that was started in 1929. The company was a part of
the Walt Disney until 2016, after which it started operating as a separate unit and was renamed
Disney Consumers Products Inc.
4. Net Worth and Key Operators
At present, Ken Potrock serves as the president of the company. In 1929,
they started off with the patent of Mickey Mouse to build children writing
tablets.
The company also manufactured Mickey Mouse toys and designed other
toys as well.
Disney Consumers Products Inc. also made the Silly Symphony film Three
Little Pigs, the brand’s first animated commercial film. The company also
produced diamond-wrought Mickey Mouse pins and Mickey Mouse toffees
in England.
5. Disney Consumer Products Inc. has
its headquarters in Burbank,
California and operates in Japan,
Florida, China, and many other
countries. The net operating cost of
the company is $6,957 Crores
(USD).
7. Portfolio of the Company
Mickey
Mouse
Textiles Retail
Licensing
Luxury
goods
8.
9. SWOT Analysis of Disney CP Inc.
Disney Consumer Products Inc. enjoys the brand value of the Walt Disney
Company even though it operates independently from the parent company.
As per Forbe’s Valuable List 2019, Disney has gained the 8th position with a
brand value that is estimated to be $ 52.2 billion.
While being a segment of the Walt Disney Company has its share of benefits
and opportunities, Disney Consumer Products Inc. still has some
weaknesses and threats to deal with.
To know more, read on the SWOT analysis of DCP Inc.
10. Strengths of Disney CP Inc.
Reliability - The brand offers reliable products worldwide and has a strong
relationship with its suppliers.
Large cash flow – The brand has an efficient cash flow system with a total
operating cash flow of $ 14.3 billion at the end of 2018.
Strong negotiation skills - The company has established strong networks
throughout the entire globe, with various numbers of dealers in the United States of
America.
Proficient team – DCP Inc. has efficient teams of animation designers as well as
artists with sufficient experience in this particular field of work.
11. Weaknesses of Disney CP Inc.
Inefficient financial planning - In 2018, the company reported a loss of $580
million because of the investment in Hulu apart from a loss incurred from investing
in BAMtech streaming technology.
Vulnerable to competitors – The company has no efficient marketing and
promotional strategies. Due to this, they are vulnerable to competition.
Demand for Products exceed supply - The product designers of the company
capitalize on old ideas and barely experiment. This leads to an excess of demand of
their merchandise over supply and yet the company is incapable of taking the
advantage.
12. Opportunities of Disney CP Inc.
Overseas Prospects – The company already has a varied portfolio, investing in
licensing, luxury goods and apparel. There is scope that the company ventures into
uncharted waters with more film making and production.
Innovation Skills - Disney Consumer Products Inc has sufficient skills thanks to its
employee base that can help them achieve several innovative technologies.
Brand Value – With a brand name like Disney, the company holds an undisputed
position in the merchandise and media industry. With the parent company taking
over houses like Marvel Studio, the opportunities just multiply manifold.
13. Threats of Disney CP Inc.
High Competition – The consumer’s product industry is highly competitive with
several brands offering substitutes for such merchandise. This makes it vurlnerable
to winding up.
Administrative Threats – In 2019, the company had to put out several
international contracts as most of the manufacturers were situated in foreign
countries. This hampered their profit.
Technological Shortcomings – Since Disney is not a software-based firm, they lack
in the technological front as they are unable to develop the latest technology for
their industry.
14.
15. PESTLE Analysis of Disney CP Inc.
Being An international company, Disney Consumer Products Inc. is effected
by several political, social, economical and technological factors. The
company also has to operate around several legal and environmental
limitations.
To know more, here is everything that you need to know about the PESTLE
factors that play an important role in shaping the brand.
Read on for more.
16. PEST Factors of
Disney CP Inc.
Political Factors – The company participates in public policy dialoguing and
corporate lobbying, which hampers their future business prospects.
Economical Factors - There is a massive demand for media and entertainment
industry which helps the company enhance its business strategy.
Social Factors – Since the nature of the products is accepted by the society in a large
scale, the company needs to focus on cultural inclinations for targeted audience.
Technological Factors - Disney has huge investments in digital and analytic
technologies such as AR/VR to offer enhanced consumer’s experience.
17. Legal & Environmental Factors of
Disney CP Inc.
Legal Factors
The management and administrative strategy of the company need to be based on the
regulations of various countries and regions that are involved in the macro-
environment. The country-wise regulations have strategic impact over the external
analysis of the brand. The legal limitations of the company can also be used to
enhance the restrictive protection of the environmental factors.
Environmental Factors
A major concern that plagues the Disney Consumer Products Inc is the availability
of resources. The climatic, as well as weather conditions, affect the firm as well as
its line of merchandise production. Modification of the cyclical weather is a macro-
environmental factor of the company.
19. Conclusion
Disney Consumer Products Inc. fails to implement efficient business strategies, for
which the company runs the risk of having to incur a great loss. Even though the
brand has international presence and authority, hat allows them to reach out to
maximum audience, there are certain limitations and threats that needs to be
addressed at the earliest.
This SWOT and PESTLE analysis can serve as a roadmap for the company in the
near future. Here are the key takeaway points of the analysis at a glance.
The brand needs to focus on its:
Marketing and promotional strategies
Client engagement and retention
Existing competition in the market
Scope of launching new products
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