The Walt Disney Company is a household name in the Entertainment, Resort, and Amusement park industry. It was founded in 1923 and is a multibillion-dollar American media giant headquartered in California. Walt Disney founded the Disney Brothers’ Cartoon Studio with the assistance of his son Roy Disney after Walt’s previous studio went bankrupt. Their first hit was the renowned Mickey Mouse, which is still popular today. They then started producing many television shows and films. The organization has undergone multiple leadership changes and growth to make Disney successful like today. This article on the Disney SWOT analysis will showcase many strengths that also helped this brand to become established.
According to Statista, the Walt Disney Company made over 22 billion US dollars in sales in the first quarter of 2022. Disney’s revenue in the first two fiscal quarters of 2020 was high, which the organization credited in part to the performance of its new streaming service, Disney+.
The Walt Disney Company – At A Glance
|Company Name||The Walt Disney Company|
|Industry||Mass Media and Entertainment|
|Founded||October 16, 1923|
|Founders||Walt Disney, Roy O. Disney|
|Headquarter||Burbank, California, U.S.|
|Annual Revenue||$67.418 Billion (FY 2021)|
Disney SWOT Analysis
The Umbrella Corporation of Disney Studios has evolved enormously over the last nine decades. Reuters reported on February 15, 2022, that Disney has hired one of its executives to manage its metaverse strategy.
When you dig deep at Disney, you may see some pressures in the background that could lead to difficulties. To correctly examine these difficulties and summarize what things are like for Disney, we will analyze the Disney SWOT analysis.
SWOT Analysis is a standard tool for assessing a company’s entire strategic position and surroundings. It can showcase how the corporation maintains its leading position in a globally competitive market by leveraging its strengths and opportunities. The way they employ their strengths mitigates the consequences of their limitations.
Strengths of Disney in SWOT Analysis
In this Disney SWOT Analysis, we have highlighted some of the most significant strengths Disney currently possesses. A corporation must understand its strengths to flourish. They can eventually use those strengths to help them identify possibilities for advancement. Being a well-known broadcasting media firm, Disney possesses several advantages that aid in ascending to the peak.
Brand Value: Disney has a solid and unique brand reputation. There are probably few individuals on the planet who haven’t heard of Disney. Their mergers have only increased their dominance. It is well-known worldwide, owing to its Disney Channel, Disney Movies, Disney Parks, and Resorts. According to reports, Disney items are pretty popular among consumers. They own numerous well-known and famous characters that many of us grew up with and admired as children.
Multiple Service: Disney provides various products and services through its different D2C (Direct-to-customer) business areas, including studio entertainment, movies, parks, activities, and merchandise. You may enjoy watching movies in your house by streaming on Disney+ or going to Disney’s theme parks, resorts, or watching Disney movies in theaters.
Extra-ordinary Team: The Walt Disney Company has the most prominent creative teams, including story scriptwriters, illustrators, and graphic designers. Disney spends heavily in staff training, resulting in some of the most skilled individuals. All specialists on the certified teams have many years of expertise in the mass media field.
Social Accountability: The organization takes pleasure in offering and sustaining safe, pleasant, entertaining, and welcoming experience for its audiences, whether adults or children. The corporation emphasizes the importance of variety in its content as a critical component of its development and viability. The organization has demonstrated its dedication to creating a safe environment for all of its consumers. They have also expressed concern for various social concerns, including human rights and water conservation.
Weaknesses of Disney in SWOT Analysis
Despite a company’s numerous quality, many limitations limit its growth. It is usually difficult for businesses to overcome their flaws. Disney may have certain shortcomings as a top-rated corporation, but its strengths may help them overcome such drawbacks faster. Here are some of the weaknesses noted in the Disney SWOT Analysis.
Dependent on North America: Disney’s most profitable market is in North America. However, the sector relies primarily on the US, Canada, and other English-speaking nations for movie distribution and product sales. As a result, the corporation is subject to socioeconomic developments in the United States. As demographics shift, the organization must appeal to a broader range of ages and a more diversified audience. Besides, the United States is a more developed market.
Bad Financial Strategy: Disney is struggling with a bad financial strategy. According to sources, the company is losing over $1 billion. On the other hand, Studio Entertainment, D2C, and Overseas only made USD 11.13 billion and USD 9.35 billion. This suggests that the corporation’s studio entertainment, D2C, and overseas parts fail.
Covid-19 Crisis: The COVID-19 outbreak resulted in massive financial losses and substantial firm layoffs. Disney’s theme parks and other outdoor attractions were closed during the crisis, which significantly impacted its finances because these locations generated a considerable portion of its revenue. They also lost a significant part of their personnel due to these closures.
Racism Controversary: After it was revealed that a senior executive at Disney’s ABC News had a record of making racist statements and participating in other racially insensitive and improper behavior, Disney came under criticism. Racist executives are a massive vulnerability in the face of growing anti-racism rallies.
Opportunities for Disney in SWOT Analysis
Finding out opportunities and correctly arranging them while matching them with the company’s strengths may benefit and promote its growth. In this Disney SWOT Analysis, we discussed many prospects for their growth.
Adapting With Trends: Disney is constantly searching for new methods to make its parks more entertaining for young and senior visitors. By adding IoT parks, Disney is leading the way. The MagicBands is one of Disney’s innovations designed to make your vacation more convenient. Moreover, people may now enhance their Disney experience online thanks to the Play Disney Parks app.
Online Streaming Service: The corporation may focus on its online video streaming service, Disney+, which provides a good potential for the company to compete with other services such as Amazon and Netflix. They may use this to take advantage of the quarantine, which is also a crucial reason for the global surge in streaming activity. Its vast catalog of movies and tv episodes might pose a serious challenge to Netflix.
Strategic Acquisitions: Strategic Purchases Disney has made several investments, including Pixar, Marvel, Fox, and others, allowing the corporation to broaden its reach and capitalize on possibilities across many industries in the entertainment business. Disney may make more strategic purchases to drive its development in the foreseeable future.
Threats for Disney in SWOT Analysis
In a saturated market, a corporation must deal with challenges to its growth. Even large corporations might suffer from these dangers if their cushioning strategies are not implemented. There are a few dangers in the Disney SWOT Analysis, but they can quickly eliminate them with good preparation.
Increasing Competition: The competitive environment in the media sector is changing dramatically. News and television are moving online, and new rivals with innovative business models operate more successfully than established media businesses. Local competitors that can supply better-adapted merchandise also pose a significant threat to Disney’s parks and resort business units. As a result, the Walt Disney Company is under increasing competitive pressure.
Piracy: With the broad acceptance of streaming services, movies, TV series, and other material have been packaged together. Customers, however, do not want to subscribe to all of the material provided by a streaming platform such as Disney+. They want to watch their favorite shows, which has increased piracy via peer-to-peer sharing options. The rise in piracy jeopardizes Disney’s profits and sustainability.
High Cost: Disney has consistently made significant investments in its workers’ growth and training. At the moment, the typical starting compensation for a starter at Disney is $15 per hour. Wages are constantly rising everywhere in the world. With the country’s law mandating wage increases, Disney may wind up with smaller earnings when paying off its overseas labor in foreign nations.
Emerging Technology: Disney does not belong to the technology industry. Thus, it can’t make technology work for them mainly. Many contents are now accessible on smartphones and TVs due to technological advancements, which is an aspect that Disney is unable to deliver. As a result, to maintain its strong position in the market, it must introduce new goods and technology.
Disney SWOT Analysis Overview Template
Recommendations and Conclusion for The Walt Disney Company
There are some recommendations for Disney’s future growth:
- To revitalize itself, Disney must simultaneously keep an eye on competitors and begin working on how to reinvent themselves.
- They must strategize on a worldwide scale and should place a greater emphasis on shifting trends in the entertainment business. Podcasting, AI, VR, extensive online communities, and altering distribution techniques are all opportunities.
- Because clients have formed some program loyalty, TV shows provide an instant chance to enhance brand recognition further.
The Walt Disney Company can strategize its progress by analyzing the Disney SWOT Analysis and focusing on its risks. The company has several flaws, but with proper planning, these flaws can be mitigated, and the company’s growth can be accelerated. The Walt Disney Company is unlikely to go away very soon since they are in tremendous demand, particularly their animated films. Disney has purchased enough companies and generated adequate cash flow to keep the corporation running for the foreseeable future.