The Walt Disney Company Performance - Case Study Example

The strategic issue in this case is improving Disney's performance.
Strategic analysis and options.
SWOT strategic analysis will help Disney reveal which weaknesses to minimize and strengths to capitalize on to create opportunities and deal with the threats (Grant 302). Therefore, In the case of Disney, its strengths are its corporate values along with its legacy. Its weakness is financial forces. It had opportunities like having over 500 Rabbit Products while competition from other companies is the threat it has. Hence, SWOT assigns sales, management, operations, other internal strengths, and other factors like new competitors and suppliers’ bargaining power.
Recommendations
Disney can be recommended to maximize its theme park profits and coordinate with other businesses like in advertising. The parks can be updated and expanded their attraction to generate rapid profit growth and revenue. For example, special events, media broadcast events, and national television adverts. Disney businesses need to be coordinated with other corporate sponsors' promotional campaigns. For example, the allocation of free minutes of advertising granted to Disney in The Disney Sunday Movie.
Justification
The recommendations will, therefore, help Disney improve its performance. According to the SWOT analysis, maximizing theme park profits using their strengths will lead to an increase in income; hence, reducing their weaknesses. Coordinating with other businesses like the TV in advertising their quality products made with Rabbit products, makes it more competitive hence, dealing with its threats.
The annual increase in adult ticket prices (%)
Graph fig.1 shows the corresponding earnings with the price of tickets from 1983 to 2000. Between 1983 and 1987, the price of tickets increased at the parks accounting for nearly $300 million. From 1988 to 2000, the price of tickets did not increase in high figures; hence, the park did not account for much in those years. Therefore, maximizing theme parks profits helps increase revenue as it is reflected in the years 1983 to 1987. Challenges Eisner faced like managing synergies, poor brand management, and poor managing creativity led to Disney's downfall. Therefore, Disney had to come up with strategies for its growth.
Good strategies, therefore, help Disney to gain more interest and continue to build its legacy by realizing its weaknesses, strengths, opportunities, and threats. Hence, the company can compete and cover competitors’ weaknesses using their strengths and opportunities. Read More