This presentation shed light on Disney's business strategy, their SWOT, BCG, ANSOFF matrix and PEST analysis.

1. Strategic
Management
- The Walt Disney
By- Akash Yadav, Anurag Singh,
Rajanikanta Nayak, Sumit Singh
BY- GROUP 2

2. “We don’t make movies to make money.
We make money to make movies”
~ Walt Disney

3. Overview
•Founded By Walt Disney
•Established in 1923
•Headquartered in California, USA
•Currently World’s Largest conglomerate in terms of revenue
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4. Overview of The Walt Disney
• The Walt Disney Company represents an organization composed of 69.57 billion
dollars in 2019.
• The five SBU’s are Disney Consumer Products, Studio Entertainment, Parks and
Resorts, and Media Networks Broadcasting , and these can be further subdivided
into 28 categories and are composed of different brands
• The two fundamental commonalities that are found upon inspection of the
entirety of the Walt Disney Company’s holdings are entertainment and
information.
• Every business activity that Disney is engaged in is related in some manner of
providing its consumer base entertainment and/or information

5. The Business
Strategies
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6. The Walt Disney Company’s Generic Strategy for
Competitive Advantage (Porter’s Model)
• Disney uses product differentiation as its generic strategy for competitive advantage.
• Michael Porter’s model states that this strategy involves unique products offered to many
market segments.
• For example, the corporation offers its entertainment products to practically every person
in the world, especially with the core emphasis on family-oriented programming.
• In this generic competitive strategy, quality and uniqueness through innovation
differentiate the company’s products from competitors.
• The Walt Disney Company’s generic competitive strategy pushes for product-focused
strategic objectives.
• Such business focus is necessary for supporting product development efforts to
differentiate the company from competitors.

7. The Walt Disney Company’s Intensive Strategies
for Growth
• Product Development (Primary) : This strategy involves offering new products in
the company’s current or existing markets. For example, the company releases new movies with
corresponding merchandise to generate more profits from its target customers worldwide.
• Market Penetration (Secondary) : As a secondary intensive strategy, market
penetration enables growth by increasing sales of existing products in the company’s current
markets. For example, one of the corporation’s strategic objectives is to use aggressive advertising to
increase its revenues from products released in the global entertainment industry.

8. • Market Development : Market development is an intensive growth strategy that is less
frequently used in The Walt Disney Company’s business. In growing the business, this intensive
strategy requires the company to introduce its existing products to new markets or market segments.
For example, growth is achieved by establishing operations in new markets, such as through a new
Disneyland amusement park to capture a regional market
• Diversification : The Walt Disney Company uses diversification as a supporting intensive
strategy for business growth. Developing or acquiring new businesses is the typical approach in this
intensive growth strategy. For example, through the establishment of the Disney Cruise Line, the
company grew by entering the cruise line market of the tourism and hospitality industries.

9. SWOT Analysis
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10. SWOT Analysis
Strengths Weaknesses
ThreatsOpportunities
GLOBAL
EXPANSION AND
ALLIANCES
BRAND
REPUTATION
Loyal Customers
Benefits from IT
Advances and
Mobile Gaming
Further expansion in new
emerging economies
Build a more eco
friendly image
Constant Need of Successful development in
material
HIGH COST OF
OPERATIONS
Financial Recession
Continuous need for
technological update
Increasing Piracy
Highly Diversified
Strategics and
tactical Acquistions
Stong Financial
Position
COCENTRATION OF REVENUE IN
NORTH AMERICA
Release of new successful
stories & character
Strong Competition
Change in consumer
preferences and taste
Negative publicity due
to unexpected event

11. SO Strategies
STRENGTHS:
1.Brand Reputation
2.Highly Diversified Portfolio
3.Strategic & Tactical Acquisitions
4.Global Expansion & Alliances
5.Economies of Scope
6.Top Management
7.Loyal Customers
8.Strong Financial Position
Opportunities:
1. Benefits From IT Advances & Mobile Gaming
2. Build A More Eco-Friendly Image
3. Further expansion in new emerging economies (India,
Russia)
4. Release of New Successful Stories & Characters
SO Strategies:
S2-O1: Develop mobile
game applications with
Disney characters
S1-O2: Collaborating with
WWF so as to promote
environmental issues
S6-O3: Build a multinational
management team
S8-O4: Consumer research
on their preferences
nowadays

12. ST Strategies
STRENGTHS:
1.Brand Reputation
2.Highly Diversified Portfolio
3.Strategic & Tactical
4.Acquisitions
5.Global Expansion &
6.Alliances
7.Economies of Scope
8.Top Management
9.Loyal Customers
10.Strong Financial Position
Threats:
1.Financial Recession
2.Increasing Piracy
3.Strong Competition
4.Continuous Need For
5.Technological Update
6.Change in Consumers
7.Preferences & Tastes
8.Negative publicity due to unexpected event
ST Strategies:
S7-T1: Offer discounts to all
members of Disney fun club
S3,S4-T3: Expansion in Brazil
market through alliances and
synergies
S8-T4: Invest on R&D for one
high tech department
S6-T5: Monthly consumer
research via online polls

13. WO Strategy
Weakness:
1.High Cost of Operations
2.Concentration of Revenues In North
America
3.Approaches Antitrust Law Limits
Opportunities:
1. Benefits From IT Advances & Mobile Gaming
2. Build A More Eco-Friendly Image
3. Further expansion in new emerging economies
(India, Russia)
4. Release of New Successful Stories &
Characters
WO Strategies:
W1-O1: Digitalization of our
operations in order to low costs
& utilize technology
W2-O3: Target India as possible
expansion through consumer
products

14. WT Strategy
WT Strategies:
W1-T1: Re-edit and release in
cinemas old classic Disney films
W2-T3,T4: Take advantage of
operations that take place in N.
America by investing in
Technology and R&D for that
area
Weakness:
1. High Cost of Operations
2. Concentration of Revenues In
NorthAmerica 3. Approaches Antitrust
Law Limits
Threats:
1.Financial Recession
2.Increasing Piracy
3.Strong Competition
4.Continuous Need For Technological
5.Update
5. Change in Consumers Preferences &
Tastes
6. Negative publicity due to unexpected event

15. BCG Matrix
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16. BCG Analysis
• The BCG matrix analysis helps the company in seeing the best areas for
making choices related to its future associates and resources.

17. • Cash Cows: These are the products, which have high market share but low growth rate. These
products are close to the maturity stage, but earn high revenues. The consumer products and Studio
Entertainment of Walt Disney fall in this category. These are considered as cash cows because of the
increase in its sales every year, but there are no such additions made in the features, operations and
offerings to the consumers.
• Stars: Starts are the products which have high market share and high market growth. They have
very strong financial performance, and its growth level will determine that products are soon to be
cash cow for the company if they are successful in maintaining the future growth rate. Media
networks and theme parks are considered as the Star items of the Walt Disney.

18. • Question Marks: Products which have high market growth but low market share fall in this
category. Internet and direct marketing of the Walt Disney are the question mark for the company, as
both are failed in performing up to the financial goals. However, efforts and attention could make
them the star products, as the opportunity for more sales lie there. People are now using digital
technology more than the conventional one, and willing to be aware about the things more easily
through digital media. Disney needs to consider this point for its future growth and expansion
• Dogs: Dogs are the products which have low market share and low market growth. These
products are not bringing any significant benefit to the company, and if are shut down, it do not bring
any loss. Interactive media is the business segment, which brings the characters and stories to the life
through creative and engaging the digital experience over 100 categories and digital games. Walt
Disney needs to work hard to turn the dog products in the cash cow or question mark products or
else must shut down these operations and invest the money somewhere else.

19. BU wise differentiation

20. ANSOFF Matrix
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21. ANSOFF Matrix
• The Ansoff Matrix is a strategic planning tool that provides a framework to help executives,
senior managers, and marketers devise strategies for future growth. It is named after Russian
American Igor Ansoff, an applied mathematician and business manager, who created the
concept.

22. Disney ANSOFF Matrix

23. PEST Analysis
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24. PEST ANALYSIS
POLITICAL
• The animation industry enjoys tax benefits.
• Political differences are an obstacle to International Trade.
• Tighter regulations regarding products safety.
ECONOMIC
• Global financial crisis slows down growth.
• Emerging markets such as India offer a cost advantage in terms of salaries and the overall cost of
production.
• Economic growth, per capita income and stage of economic development among different countries
needs to be considered.

25. SOCIAL
• Different local cultures, as well as stories and history of the host place.
• Changes in customers preferences for entertainment.
• Significant role of kid’s and family’s entertainment.
TECHNOLOGICAL
• Technological advancements are having a profound effect on the world’s media.
• Changes in technology affect demand for entertainment products as well as the cost of
production.

26. References:
• http://panmore.com/disney-generic-competitive-strategy-intensive-growth-strategies
• https://www.statista.com/statistics/224397/quarterly-revenue-of-the-walt-disney-
company/
• https://bcgmatrixanalysis.com/bcg-matrix-of-walt-disney/
• https://en.wikipedia.org/wiki/Ansoff_Matrix

27. Thank You!
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