Running Head: SWOT ANALYSIS AND STRATEGIC SCORECARD1
SWOT ANALYSIS AND STRATEGIC SCORECARD2
Part 1—SWOT Analysis (2 pages)
EuroDisney as a firm experiences threats and opportunities and also strengths and weaknesses. This means that the firm must therefore put its good strategies in place in order to take advantage of any opportunities that may come up or to maximize the strengths that it has in order to increase its earnings. It is also important to strategize on how to minimize the firm’s weaknesses and minimize the effect of the threats to avoid lowering the earnings of the firm (Moss, 2010).
Strengths
1. Good company image
2. Great financial stability
3. It is popularly known for its entertainment
4. Good brand name
5. Good and strong reputation
6. Innovation
Opportunities
1. The location of the company in France was an opportunity due to the tourism that takes place there
2. The ease of accessibility of the location of EuroDisney is also an opportunity
3. The culture of the Europeans who include vacations as part of their lifestyle is also an opportunity for EuroDisney
4. Support from the government of France in terms of its finances
Weaknesses
1. The theme parks in EuroDisney have a low capacity which cannot accommodate the high number of visitors (Moss, 2010).
2. Lack of adequate experience for running the theme park business in Europe
3. Another weakness faced by the firm is applying effective business strategies and implementing them internationally
4. Poor management and high employee turnover rates
Threats
1. Competition from other firms such as DreamWorks
2. Economic forces such as depression
3. Presence of better theme parks compared to the ones in EuroDisney
4. Cultural imperialism is also a factor that acts against the firm’s objectives
Strengths
Weaknesses
Opportunities
· EuroDisney can use its size, popularity and good company image to obtain a greater share in the market by coming up with improved business strategies
· Through its central and strategic location, EuroDisney can increase the number of entertainment activities in order to attract a wider number of visitors and therefore gaining more earnings
· Due to its financial stability and support from the government of France, the firm is in a better position to expand its business activities and implement better strategies to improve its performance.
· The location of EuroDisney and its wide popularity can be very effective in trying new lines of business for the firm as a diversification strategy (Adbulaziz, 2011).
· With support from the French government, the firm was greatly boosted financially. Therefore, it should use such funds to strategize on how to reduce the high turnover rates of the employees in the management position, perhaps through a greater pay (Adbulaziz, 2011).
· The firm should also strategize on how to expand its theme parks and their management by taking advantage of opportunities such as the French government support.
Threats
· Due ...
Running Head SWOT ANALYSIS AND STRATEGIC SCORECARD1SWOT ANA.docx
1. Running Head: SWOT ANALYSIS AND STRATEGIC
SCORECARD1
SWOT ANALYSIS AND STRATEGIC SCORECARD2
Part 1—SWOT Analysis (2 pages)
EuroDisney as a firm experiences threats and opportunities and
also strengths and weaknesses. This means that the firm must
therefore put its good strategies in place in order to take
advantage of any opportunities that may come up or to
maximize the strengths that it has in order to increase its
earnings. It is also important to strategize on how to minimize
the firm’s weaknesses and minimize the effect of the threats to
avoid lowering the earnings of the firm (Moss, 2010).
Strengths
1. Good company image
2. Great financial stability
3. It is popularly known for its entertainment
4. Good brand name
5. Good and strong reputation
6. Innovation
Opportunities
1. The location of the company in France was an opportunity
due to the tourism that takes place there
2. The ease of accessibility of the location of EuroDisney is
also an opportunity
3. The culture of the Europeans who include vacations as part of
their lifestyle is also an opportunity for EuroDisney
2. 4. Support from the government of France in terms of its
finances
Weaknesses
1. The theme parks in EuroDisney have a low capacity which
cannot accommodate the high number of visitors (Moss, 2010).
2. Lack of adequate experience for running the theme park
business in Europe
3. Another weakness faced by the firm is applying effective
business strategies and implementing them internationally
4. Poor management and high employee turnover rates
Threats
1. Competition from other firms such as DreamWorks
2. Economic forces such as depression
3. Presence of better theme parks compared to the ones in
EuroDisney
4. Cultural imperialism is also a factor that acts against the
firm’s objectives
Strengths
Weaknesses
Opportunities
· EuroDisney can use its size, popularity and good company
image to obtain a greater share in the market by coming up with
improved business strategies
· Through its central and strategic location, EuroDisney can
increase the number of entertainment activities in order to
attract a wider number of visitors and therefore gaining more
earnings
· Due to its financial stability and support from the government
of France, the firm is in a better position to expand its business
activities and implement better strategies to improve its
performance.
· The location of EuroDisney and its wide popularity can be
very effective in trying new lines of business for the firm as a
diversification strategy (Adbulaziz, 2011).
3. · With support from the French government, the firm was
greatly boosted financially. Therefore, it should use such funds
to strategize on how to reduce the high turnover rates of the
employees in the management position, perhaps through a
greater pay (Adbulaziz, 2011).
· The firm should also strategize on how to expand its theme
parks and their management by taking advantage of
opportunities such as the French government support.
Threats
· Due to the strong brand name of the firm, the firm should be
able to deal with issues such as competition from other firms.
· Since the firm enjoys strengths such as financial stability, it
should ensure that it has the best workforce in the market so
that they can help the firm through coming up with effective
strategies that can boost the performance of the firm.
EuroDisney is capable of doing this as it has the financial
capability to fund strategies that require funding for them to be
effective.
· Since the firm is popularly known, it can use this to outdo its
competitors by distributing its products worldwide. This
strategy can be very effective in helping the firm to deal with
the threat of new entrants by ensuring that its services and
products are of high quality and are also readily available in
many countries (Adbulaziz, 2011).
· Through strategies such as innovation, the firm can outdo its
competitors. Foe example, the firm can come up with very
creative films that are very unique to its competitors and that
will attract more viewers. This way, the firm will gain more
customers and improve its reputation by anticipating and
satisfying the customers’ wants and needs.
· EuroDisney faces the threat of competition from other firms
such as DreamWorks. However, the firm can reduce the impact
of this threat by addressing issues such as the poor management.
This is because when the issue of poor management is
addressed, the firm will improve in terms of strategy
4. formulation and implementation and will therefore be able to
outdo its competitors. When weaknesses such as low capacity to
accommodate more visitors in theme parks are addressed, the
firm will also minimize the threat of competition.
Part 2—Balanced Scorecard/KPIs (4 pages)A balanced
scorecard presents organizational performance on four primary
groups of measures:
1. Financial
In terms of the financial perspective of the balanced score card,
the main focus is on how the company should present itself
before the shareholders in order to ensure that it succeeds on
that perspective (Kaplan & Norton, 1996).
The measures that provide guidance on how the firm performs
in terms of the financial perspective of the balanced score card
in EuroDisney include;
a) Determining the profits and losses of the firm. When the
profits or losses of the firm are calculated through the income
statement, it is easier for the firm to know whether the
shareholders are getting value for their investment or if the firm
is competitive when this is compared to the performance of the
competitor firms. For example, the performance of EuroDisney
can be compared to that of DreamWorks.
b) Determining the assets and liabilities of the firm through the
balance sheet. The assets and liabilities of the firm can only be
measured through the balance sheet. The balance sheet indicates
the financial performance of the firm to the shareholders as it
outlines the assets that the firm possesses and also the liabilities
(which includes debts) that the firm has. This therefore presents
the shareholders with a clear report on how their investment is
productive or non-productive as it indicates the performance of
the firm. A firm with a lot of debts can be said to be performing
poorly.
2. Customer (external stakeholder)
Customers are very important to the existence of any firm. This
is because without them, the firms would have no need to run
business. This therefore implies that businesses and firm exist
5. to satisfy the needs and wants of the customers and so they must
act according to what they are instructed by the customers.
Recently, most firms are placing their focus on the customers as
they have realized that their very existence is because of
customers. Firms must also be able to classify their customers
based on their income and needs. This helps in identifying and
satisfying their needs with much ease (Kaplan & Norton, 1996).
The measures that give measurable and reliable indication of the
performance of EuroDisney in terms the customer perspective
include;
A) Feedback from the customers. Feedback whether positive or
negative, shows the performance of the firm in terms of the
satisfaction levels. If the firm satisfies its customers, then they
provide positive feedback. If they are not satisfied, they give
negative feedback. Feedbacks help in informing the
management of the firm’s performance. Positive feedback from
customers indicates that the firm is more competitive compared
to the others.
B) Customer retention or new customers- The firm can
determine its performance in terms of how it satisfies its
customers through the analysis of retention rates and new
customers. When the firm retains the existing customers, then it
shows that its services and products are good. This indicates to
the shareholders that the firm is doing well and that they are
gaining value for their investments. In terms of the competitive
advantage, the firm is usually at the top of its competitors when
it retains its customers or when it gains new ones.
3. Learning and Growth
This perspective involves the training and development of
employees in relation to the overall development and growth of
the firm. Due to the dynamism in the corporate world, it is very
important that firms keep their employees constantly learning.
Firms whose employees keep learning are very forward-looking
and focused and always benefit. These firms show customer
value as when the employees are trained, they tend to learn how
to deal with customers better and therefore customer value
6. increases (Kaplan & Norton, 1996).
The measures that are put in place to give a measurable and
reliable indication performance of this perspective of the
balanced score card include;
a) Presence of training programs for the employees. Firms that
have such programs encourage the growth of the employees and
the firms. They also give the firms a competitive edge over their
competitors.
b) Presence of counseling and mentoring sessions. Firms with
mentoring and counseling sessions or programs also encourage
the growth of the employees and therefore leading to the firm’s
growth. This is because when the employees are satisfied and
stress-free, they work better and therefore the performance of
the firm increases (Kaplan & Norton, 1996).
4. Internal Process
This perspective of the balanced score card deals with the
business processes of the firm and about their conformity to the
overall mission and goals of the firm. The measures that can be
used to measure this include;
a) The inclusion or exclusion of the employees and the
management in the firm’s mission, goals and overall strategy.
When the firm’s employees and top managers are included in its
overall strategy, it implies that the firm has trust in the
workforce and believes that they can help the firm to achieve
the goals.
b) Presence of the vision statement of the firm. The vision
statement indicates the future focus of the firm. Firms without
this do not show any value for their investors, and do not also
have any strategies for the future. It is therefore very important
that firms have a vision statement that shows its future focus
and direction. This can also be categorized as a strategy to help
employees grow and also to boost performance (Kaplan &
Norton, 1996).
References
Adbulaziz, S. (2011). Walt Disney- Company Insight &
7. Competitive Analysis. New York: Slide share Inc.
Kaplan, R. S., & Norton, D. P. (1996). The balanced scorecard:
Translating strategy into action. Boston, Mass: Harvard
Business School Press.
Moss, S. (2010). The entertainment industry: An introduction.
Wallingford, UK: CABI.
Running Head: EuroDisney Internal Environmental
Scan/Organizational Assessment
1
EuroDisney Internal Environmental Scan/Organizational
Assessment
2
Table of Contents
Mission
3
Vision
3
Values:
3
Strategy Clarification
3
Cultural Assessment
4
Value Chain Analysis
5
Summary of Findings
5
References
8. 7
Mission
The mission of the company states that the company will be one
of the leading producers and providers of information and
entertainment in the world. The company will excel in
diversification, international family media and Entertainment
Company. Vision
The company’s vision is to be the pre-eminent leader in the
family entertainment field worldwide.
Values:
The company values include innovation in which the company
follows a strong innovation tradition. On quality, the company
will strive to follow the highest standard of excellence while
maintaining high quality standards in the product categories. On
optimism, the company believes that entertainment is about
hope, positive resolutions and aspirations. The company values
on decency regard respect and the honor the consumers place on
the company (Farfan, 2012).
The mission and vision of the company are in consensus and are
aligned alongside the company business strategies. The
company behaviors espoused by the values revolve around the
belief that fun is about people laughing at their experiences and
themselves. The company creates inclusive and positive ideas
regarding families by providing entertainment experiences for
generations to share.
Strategy Clarification
The company senior staff fully understands the business
strategy of the company. They individually and collectively
contribute towards the realization of the strategy. Individual
managers contribute innovative ideas on how the company
business strategy will be achieved. They share information
9. during meetings and ensure that they collaborate to solve
customer problems across structural boundaries. The company
has an advance technological system for sharing information.
The company has a portal where staff shares information to
timely respond to customer concerns. The managers of the
company inspire each other through communication and conflict
management.
However, the managers do not universally agree that the
business strategy has created a leading market position in the
market. There is agreement among the managers that the
company has a competitive advantage over competitors since it
has created a niche in family entertainment in many existing
and new markets in diverse locations in the world.
Cultural Assessment
The company believes in clan, adaptability and achievement
cultures. Under the clan culture, the leadership of the company
believes in cooperation between managers and staff. The
cooperation is valued as a means of achieving the business
goals. From this, the value of agreement arises where the
management believes that agreement among the managers and
among the employees will propel the company to the desired
market position. The company believes in fair treatment of all
its employees irrespective of their rank or position in the
company.
Under the adaptability culture, the company believes in values
such as creativity, experimentation, risk-taking, autonomy and
responsiveness. The employees are encouraged to be creative
and innovative in order to live to the company’s mission, vision
and values. The research and development department are
encouraged to experiment with diverse products in order to
develop unique products that will create competitive advantage
for the company. In this, the R & D team is supported by the
management when they take risks to develop new products that
are potentially disruptive to the entertainment market. The
department is granted autonomy by the company in developing
10. new products albeit with consultation with the relevant
departmental managers. The employees of the company are
encouraged to engage in consultations regarding the
improvement of the company image. They are encouraged to be
responsive to issues that may arise in the company as well as to
the company customer concerns. They are encouraged to
forward any concerns by the customers to the relevant managers
so that the managers can timely respond to the customers. Value
Chain Analysis
In order to create value along the distribution chain, the
company has created an environment for entertaining customers.
The company often organizes road-shows in the effort of
reaching its customers (Amsom, 2011). During these road-
shows, the company reduces the price of the products and
delivers the products to its customers. This creates value for the
customers who do not have to spend time visiting the company
outlets to purchase the products. Summary of Findings
The company has the strength in that it has a wide area of
operation. The diversification of products enables the company
to have a wide customer base. When one product stagnates in
the market, another category of product is in its prime. This
ensures that the company remains profitable irrespective of
some products being considered obsolete in the rapidly
changing entertainment market. The company has a strong brand
loyalty. Most families buy the entertainment products from the
company. The loyalty by customers enhances the attracting of
potential customers through the word of mouth. The company is
financially endowed hence is able to compete with other
entertainment companies such as Wal-Mart. Since the company
business is diversified, it makes profits from different markets.
The company has opportunities to develop business in the
international market. Contemporary, the company products are
used by customers virtually in every part of the world. The
emerging markets present the company with the opportunity to
11. further expand its business territory. The company can also
expand its brand to include products and services associated
with entertainment products such music. The availability of the
internet presents the company with the opportunity to create e-
market for the products through collaboration with other
companies that provide e-market services such as Google.
References
Amsom, N. (2011). Value Chain Analysis Disneyland. Retrieved
from http://www.slideshare.net/Noonamsom/value-chain-
analysis-disneyland
Farfan, B. (2012). Walt Disney Company Mission Statement.
Retrieved from
http://retailindustry.about.com/od/retailbestpractices/ig/Compan
y-Mission-Statements/Walt-Disney-Mission-Statement.htm
Running Head: EXTERNAL ENVIRONMENTAL SCAN1
EXTERNAL ENVIRONMENTAL SCAN6
The business environment is very dynamic and firms need to
constantly keep pace with the changes that occur to stay
competitive. The following is an analysis of Euro Disney using
the five forces model of Porter. The firm faces the challenge of
new entrants. Due to the firm’s ability to find a specific niche
for its products, entering the industry is relatively tough.
Additionally, the firm has utilized the diversification strategy
through offering a wider variety of services and commodities to
its customers, for example, theme parks, dining places and also
the hotel business (Sehlinger, Testa, Peters & Cassar, 2010).
12. This enables it to cut down on the operational costs by
producing in large quantities (economies of scale) and thus
making it special compared to other competitor firms as it can
as well sell its products relatively cheaper to outdo them. This
is made possible by its mass production capability. The firm is
also popular in providing home entertainment and is therefore
dominant in the market and all these make it hard for other
firms to enter the market. Finally, the fact that the capital
requirements for entry in to the entertainment industry are too
high makes it hard for other firms to penetrate in the market
(Roy, 2009).
In terms of the buyers’ power to bargain, the entertainment
industry can be said to favorable. This means that this power is
high in this industry. This is because the firm needs a lot of
customers in order to operate and make profits. Therefore, its
customers definitely have some rights and privileges. For
example, the customers may choose not to buy movies that are
priced too highly by the firm and since the firm needs the
customers, it will act by lowering the price. This bargaining
power is also increased when some clients do not understand the
intangible benefits that they receive from purchasing these
products and services (Sehlinger, Testa, Peters & Cassar, 2010).
The suppliers’ bargaining power in the entertainment industry
can be said to be temperate. This is the case due to the nature of
the industry which is characterized by lot of differentiation,
distinctiveness, and high costs of switching from one business
function to another. The suppliers for this industry have a few
customer companies and Disney is one of them. However, the
firm can be said to be the most important client for most
suppliers and due to its big size, it has some advantages.
Therefore, there is an important relationship between the firm
and its suppliers especially due to the fact that the firm is very
crucial to the success of the suppliers due to its bulk buying
capacity (Moss, 2010).
Euro Disney can be said to be some how free or immune to the
threat of substitutes entering the market. Therefore, this threat
13. can be rated as being quite low as the firm has set price ceilings
for most of its commodities. Additionally, the firm continually
upgrades its services and commodities to ensure that it stays on
top and rules out the possibility of being defeated in the
industry by any competitor.
In terms of rivalry in the industry, the firm stands out. This is
due to its competitive nature as it has many customers, offers a
variety of products and services, embraces technological
advancements to stay ahead of competition, has loyal customers,
and also advertises its products and services to gain more
customers. Additionally, in terms of the earnings, the firm is on
top and its main rivals are Merlin Entertainment Group and 6
Flags among others (Ahlstrom & Bruton, 2009).
The entertainment industry is also affected by legal and
legislative factors. For example, the government of France has
helped the firm a lot. It provided a lot of financial help to the
firm and gave it tax relief and this has helped the firm a lot.
This together with the huge costs of entry into the market has
helped the firm to stay ahead of its competitors and to bar
others from entering in the industry.
Political factors and trends have also affected the entertainment
industry. These include wars such as the Persian Gulf War,
which triggered a decrease in the number of people travelling to
Paris and therefore Euro Disney lost a lot of revenue (Ahlstrom
& Bruton, 2009).
Economic factors and trends also affect the entertainment
industry. For example, in times of depression in some countries,
it is often hard for customers to purchase products and services
for entertainment as this may often be considered as luxury
products. This affects the firm in terms of reduced revenue
(Adbulaziz, 2011). However, due to the diversification strategy
of the firm by setting up many centers (branches) around the
world, the firm continues to run as its other branches such as
those in Japan continue making a lot of revenue thus covering
for the operating costs of the affected branches. Another
economic factor is competition. The firm faces competition
14. from other firms. This is the case especially as new cartoons are
created often by other competitor firms/rivals. Disney therefore
needs to innovate more in order to prevent being faced out by
other rivals. It also faces competition in its theme parks.
Finally, the firm’s innovativeness and size also place it at a
competitive edge (Sehlinger, Testa, Peters & Cassar, 2010).
The firm also faces challenges with its top management. This is
because the firm is constantly changing its top leaders, which is
a costly affair. This is because every time this happens,
recruitment has to be done to get other managers. To increase
efficiency, the firm must strategize on how it can maintain the
current leaders to avoid these costs (Adbulaziz, 2011).
Economic factors and trends
1. Competition- Threat
2. Economic forces such as depression- Threat
3. Innovation- Opportunity
4. Competitive size- Opportunity
5. Management issues- Threat
Political factors and trends
1. Persian Gulf War- Threat
Legal and legislative factors and trends
1. Support by the French Government- Opportunity
References
Adbulaziz, S. (2011). Walt Disney- Company Insight &
Competitive Analysis. New York: Slide share Inc.
Ahlstrom, D., & Bruton, G. D. (2009). International
management: Strategy and culture in the emerging world.
Australia: South-Western.
Moss, S. (2010). The entertainment industry: An introduction.
Wallingford, UK: CABI.
Roy, D. (2009). Strategic foresight and Porter's five forces:
15. Towards a synthesis. München: GRIN.
Sehlinger, B., Testa, L., Peters, E., & Cassar, A. (2010). The
unofficial guide to Disneyland Paris. London: Wiley & Sons.
Market Position Analysis: Product Position versus Competitor
Product Position
Needs of the Consumer
Rating of Your Product
(Use a scale of 0–2*)
Rating of Competing Product 1
(Use a scale of 0–2*)
Rating of Competing Product 2
(Use a scale of 0–2*)
Rating of the Competing Product 3
(Use a scale of 0–2*)
Quality
2
1
0
0
Price
1
2
1
1
Availability
2
16. 2
2
1
Features
2
1
1
1
Functions
2
1
1
1
Brand Image
2
1
1
0
Total Score
11
8
6
4
Narrative/Comments
The firm offers high quality products and services that appeal to
the highest number of customers and thus its success.
This is the closest competitor such as Times Warner Inc.
However, Disneyland still has a competitive edge over this firm.
This is a competitor that is till struggling with quality issues of
its products and services in order to stay in the entertainment
industry
This competitor is either new in the market or experiences poor
performance due to lack of good brand name and quality
products and services.
18. · Describe the target customer for the product/service in terms
of relevant characteristics that impact the marketing strategy,
including location (how it is reached) and buying habits.
The company Disneyland Paris provides entertainment,
relaxation joints and dining places for its customers. Its target
customers are from all over the world and of all age groups but
due to the high price of the tickets as per their standards, the
firm has used the niche strategy of segmentation whereby only
individuals of a certain class can have access to certain
services; those of high social status. Those of middle level
incomes can also access some of these services as the pricing
strategy used allows for this; revenue centered pricing strategy.
This strategy has also been used whereby the charges for
customers of French origin are much lower compared to those of
other customers such as British customers. The use of several
languages in booking the tickets to access the services of the
firm is also a way of attracting a wide range of clientele from
different regions of the world (Clavé, 2006).
Additionally, the location of the firm is one that portrays the
perception of a high society range of clientele; Paris is known
to be a prestigious city especially for it fashion and high
celebrity composition and this makes it expensive, therefore,
the targeted customers for Disneyland Paris are mostly high
19. people in all societies of the world although the average person
can also access some services and products. In terms of the
buying habits, the firm can be said to be targeting customers of
French origin more as the prices charged to them seem to be
considerably lower. This can also be a strategy to attract more
customers of French origin to use their services through the
high discounts as the firm is in their country; France (Aaker &
McLoughlin, 2010).
· Identify each customer segment’s specific wants and needs.
Explain why they buy your company’s product or service, or a
competing product or service.
There are several customer segments in Disneyland Paris and
these vary according to the levels of income, age group and
social status. There are those who visit the theme parks and
expect to get a lot of amusement and entertainment through
visiting popular thematic parks such as the Santa Claus Land;
this is for all age groups and the all level of income earners
(Doole & Lowe, 2005).Those who visit retail centers expect to
get the commodities that they are looking for and at fair prices;
this is mostly for the high society as they are quite expensive;
those who visit dining places expect high quality and delicious
dishes and cuisines; those who visit hotels expect quality
services and finally, those who visit the entertainment center
expect a lot of interesting and entertaining features or films.
The main reason why these customers buy the products or
20. services of Disneyland Paris is to get original entertainment at
the most popular city and to have a taste of entertainment at the
source. That is why these customers pay such high prices to get
these services and products (Aaker & McLoughlin, 2010).
· Justify how well your product/service satisfies customer wants
and needs. Identify any wants and needs that are not met by
your product/service.
By visiting the theme parks at Disneyland Paris, the customers
get first hand entertainment whereby children can play and
older people can interact and get entertained by visiting the
places that are iconic for famous movies such as the sleeping
Beauty castle. Through the hotels and fine dining places,
customers’ dining needs are satisfied and fulfilled through the
fine cuisines. Finally, customers also get to have a taste of
glamour and elegance that is associated with Paris through
visiting the retail store at Disneyland Paris (Doole & Lowe,
2005).
· Analyze your product’s position in relation to the competition.
Identify 3–5 main competitors. Explain how your product
differs in terms features, function, quality, price, availability,
brand image, etc. Explain why this differentiation is important
to your customers.
Disneyland Paris has a high market position compared to its
competitors. This is mainly because of its brand name and its
diversification strategy. Its main competitors are; Time Warner
21. Inc., AOL Inc., CBS Corporation and also DreamWorks.
Compared to the other competitor firms, Disneyland Paris offers
first class services that have special features such as the popular
Cinderella castle which is behind the popular short stories and
films of Cinderella. In terms of the brand image, Disneyland is
definitely known for its strong brand image. Additionally, the
firm offers high quality services through its high quality hotel
services, and friendly booking services that seek to serve a wide
range of clientele in many different languages. This
differentiation is important in helping the customers to learn
about the various products and services offered by the firm and
in providing information about the convenience of Disneyland
Paris for all customers who seek high quality services and
entertainment (Munos, 2003).
· Describe the source of competitive advantage for your
product. Evaluate sustainability of this source of advantage.
The main source of competitive advantage for Disneyland is its
strong brand name. The sustainability of this firm’s brand name
lies in continuously providing quality and worthy services and
products to customers. Consistency is a very hard thing to
maintain in a business but when it comes to protecting the
firm’s main source of competitive advantage, it is very crucial
to do everything to keep the firm at the top of its competitors
(Duron, 2009).
· Assess the long-term sustainability of the source of
22. differentiation and competitive advantage.
In terms of the long term sustainability of Disneyland’s source
of differentiation and competitive advantage, a lot can be said.
The firm needs to come up with strategies to continually protect
its brand image, to protect the various products and services
offered by the firm and to continually improve them in terms of
quality and fair prices to suit all customer segments. Therefore,
how long these differentiation strategy stays on top and the how
long the firm will have competitive advantage over other firms
will depend on how it will continually be strategic to retain the
current customers and to attract more (Doole & Lowe, 2005).
· Apply the five “P’s” of marketing to your product analysis.
In terms of the product, the firm offers a wide range of products
and services ranging from theme parks, hotel services, dining
services and hotel services. These products and services target
all customer segments including the different age groups and
people of different income levels. The price charged by
Disneyland covers all customer segments as there are products
and services for the high income earners and also for the
average customers (Duron, 2009). The price set is also
appropriate to cover the operating costs of the firm and to
ensure that it can still continue operating with some level of
profits. As for the place, the firm is centrally situated in Paris at
a convenient place that is easily accessible. The firm uses the
promotion factor of the marketing mix to create awareness of
23. their products to the customers through massive advertising
over the internet and billboards. As for people, this P explains
how the knowledge and skills of the firm’s employees can help
it to achieve the set goals and help it obtain a big market share
(Duermyer, 2012).
Conclusion
Disneyland Paris can be said to a firm that has improved
overtime due to application of relevant strategies to protect its
market share. The differentiation strategy is the most utilized
strategy in this firm and therefore if other firms place their
focus on crafting practicable strategies, their firms can prosper
as well. A firm’s strategy and continuous improvement is
therefore very crucial to the success of any firm.
After interviewing the three managers on their views concerning
Disneyland’s value proposition, market position, and
competitive advantage, two of them agreed that the firm is a
market leader especially in the entertainment industry, but not
in terms of the other products such as the hotel business as there
are other market leaders in that field. The other manager was of
the view that Time Warner Inc. was the market leader. In terms
of the value proposition, two managers were of the view that the
firm appeals to most of its clients because of its commitment to
providing quality entertainment and its diversification strategy
of offering a wide range of products and service. The other
manager was of the view that the firm’s value proposition lies
24. only in its strong and popular brand name. In terms of the
competitive advantage, the three managers agreed that
Disneyland Paris gets its competitive advantage through its
strong brand name which has helped it to make a lot of sales
and to attract and retain many customers and thus staying ahead
of its competitors.
References
Munos, T. (2003). Decline of the Masterbrand. President and
CEO Magazine. New York: Marriot.
Duron, M. (2009). The 5P’s of marketing.Duermyer, R. (2012).
Marketing Mix. New York: The New York Times
Company.Doole, I., & Lowe, R. (2005). Strategic marketing
decisions in global markets. London: Thomson Learning.Clavé,
S. A. (2006). The global theme park industry. Wallingford,
Oxfordshire: CABI.Aaker, D. A., & McLoughlin, D. (2010).
Strategic market management: Global perspectives. Chichester:
Wiley.
LASA 2—Capstone Strategic Audit
In this assignment students integrate all the pieces of work they
25. have drafted and formally turn it into the capstone strategic
audit.
In previous assignments, you performed multiple, specified
analyses of your company (EuroDisney). Those individual
analyses provide the needed research to successfully complete
the following LASA:
Directions:
Using the tools and framework learned in class and throughout
the program, prepare a 15-page strategy audit of your company
with a companion presentation. The strategy audit is a
comprehensive analysis of the company’s business strategy and
operating performance, and culminates in a series of
recommendations for improving your company’s performance
based on the findings and conclusions of your analysis.
A strategy audit involves assessing the actual direction of a
business and comparing that course to the direction required to
succeed in a changing environment. A company's actual
direction is the sum of what it does and does not do, how well
the organization is internally aligned to support the strategy,
and how viable the strategy is when compared to the external
market, competitors, and financial realities. These two
categories, the internal assessment and the external or
environmental assessment, make up the major elements of a
strategy audit.
In your strategy audit:
26. · Provide a high-level analysis of the company’s business
strategy and operating performance. Be sure to complete the
following:
· Analysis of the company value proposition, market position,
and competitive advantage
· External environmental scan/five forces analysis
· Internal environmental scan/organizational assessment
· SWOT Analysis
· Balanced scorecard/strategy scorecard
· Recommend specific tactics for improving your company’s
strategic alignment and operating performance.
· Recommendations can include but are not limited to tactics in
marketing, branding, alliances, mergers/acquisitions,
integration, product development, diversification or divestiture
and globalization (if you recommend your company go global,
you must include a supply chain analysis and an analysis of
your firm’s global capabilities).
· Explain how the recommendations will help the company
achieve its strategy and vision.
You are to write this report as though you are a consultant to
your company, and are addressing the executive officers of this
company. You will collect and analyze a large amount of data in
producing your report, but your final product will be condensed
and focus on presenting your analysis findings and conclusions.
Your report should consist of the following sections in the
27. given order.
· Executive Summary (1 page): A concise and insightful
summary of the significant findings of your analysis and the
recommendations you have for your executive team.
· Strategic Issues and Recommendations (5 pages): Identify 5–7
most important strategic issues facing your business unit.
Strategic issues arise from a mismatch between internal
capabilities and external trends such that important
opportunities are not being pursued or significant external
threats are not being addressed under the current strategy.
The strategic issues list should integrate your SWOT analysis,
your Five Forces analysis, and the organizational assessment
and external environmental scan completed earlier during the
course. These detailed analyses are the foundation for your final
set of findings and recommendations presented to the executive
team.
In developing your recommendations for addressing each
strategic issue, consider misalignments that might be apparent
in different operating areas:
· Product Portfolio: Are there changes to the target market
segment, value proposition, or positioning of the product or
service line needed?
· Structure: Are the organizational roles and responsibilities,
decision-making authority, skill requirements, and work
assignments properly configured and aligned to support the
28. strategy?
· Organizational Culture or Behavior: Does the organizational
culture inspire behaviors that support the strategy? Are the
mission, vision, and values clearly articulated and aligned with
the strategy? What new behaviors are needed?
· Value Chain Activities: Does the organization value chain
fully align with the strategy? Are their activities that should be
added, eliminated, or modified significantly?
· Performance Measures: Do the organization’s performance
measures focus on the key drivers of strategic success? Is there
a strategy scorecard that ties the main elements of the strategy
to specific operating capabilities, including goals and key
performance indicators (KPIs) that give an indication of
incremental or predictive progress toward reaching strategic
goals?
Your recommendations should fall into these general categories,
but be specific in terms of scope and expected impact.
These sections are completed earlier in the course, and should
appear as appendices:
· SWOT Analysis (2 pages—completed in Module 6): SWOT
matrix illustrating strengths, weaknesses, opportunities, and
threats.
· Balanced Scorecard / Strategy Scorecard (4 pages—completed
in Module 6): Develop a Balanced Scorecard for your business
unit that reflects the key drivers for your business strategy.
29. · Organizational Assessment (3 pages—completed in Module 5)
· External Environmental Scan and Five Forces Analysis (3
pages—completed in Module 3)
· Market Position Analysis (3 pages—completed in Module 2)
Write your report in Word format. Apply APA standards to
citation of sources.
Finalize the companion PowerPoint presentation that
summarizes the audit and recommendations in a compelling
manner that persuades senior management to explore and
possibly implement your recommendations. The elements of the
presentation should include the following:
· Title
· Agenda
· Summary of audit
· Recommendations
· Key measurements
· Risks and benefits
· Call to action
· Next steps
Develop a 10-slide presentation in PowerPoint format. Apply
APA standards to citation of sources.
Use information from your previous assignments to support
your conclusions and recommendations and conduct additional
research when needed. Make sure you properly reference and
cite so that the location of information is clear.