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Analysis - Case Study Example

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Summary
It has been improving in every change of management. For example, by the end of 2000, the revenues increased to $25 billion from $1.65 billion (Smith and Clerk 30). The performance…
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Case Analysis
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The Walt Disney Company Case Study Background The Walt Disney Company performance under different management in the early twenty century. It has been improving in every change of management. For example, by the end of 2000, the revenues increased to $25 billion from $1.65 billion (Smith and Clerk 30). The performance started to drop in 1999, in the same way the growth rate dropped to 10% from 20% in 1996. Therefore, the strategic issue in this case is improving Disney performance.
Strategic analysis and options.
SWOT strategic analysis will help Disney reveal which weakness to minimize and strengths to capitalize in order to create opportunities and deal with the threats (Grant 302). Therefore, In the case of Disney, its strengths are the 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 supplier’s 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 expand its attraction to generate rapid profit growth and revenue. For example, including special events, media broadcast events and national television adverts. Disney businesses need to be coordinated with other corporate sponsors promotional campaigns. For example, allocation of free minute 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 increase of 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.
Annual increase in adult ticket prices (%)
The graph fig.1 shows the corresponding earnings with price of tickets from 1983 to 2000. .Between 1983 and1987, the price of tickets increases at the parks accounted nearly $300 million. From 1988 to 2000, the price of the tickets did not increase in high figures; hence, the park did not account much in those years. Therefore, maximizing theme parks profits helps in increase of 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 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 their weaknesses, strengths, opportunities and threats. Hence, the company is able to compete and cover competitors’ weakness using their strengths and opportunities.
Conclusion
In conclusion, Disney changing its tactics of managing its entertainment empire reflects the SWOT strategy. The strategies recommended makes the company know their problem and use their strengths and opportunities to tackle its weakness and shut down the threats surrounding it.
Annual increase in adult ticket prices (%) graph
Fig. 1
WORK CITED
Dave Smith and Steven Clark. Disney: The First 100 Years. New York City: Hyperion, 1999,
Print.
Robert Grant m. Contemporary Strategic Analysis. New York City: John Wiley and Sons, 2010.
Print. Read More
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