Porter's 5 Forces, Disney, specializing in leisure, entertainment, cartoons, production of films, television shows, short films, entertainment television channels
The Walt Disney Company is an American company founded in 1923 and specializing in leisure and entertainment. The Walt Disney Company was originally a cartoon production studio, created and supported by the two brothers of the Disney family. Disney studios are the source of many cartoons that are now famous around the world: Mickey Mouse, Donald Duck, etc. The success of the Walt Disney Company was rapid from its inception. The company has grown rapidly, adding production of films, animated films, television shows, short films, and then entertainment television channels. Walt Disney has created several theme parks and amusement parks, developed a cruise line, hotels and lodgings, and a travel company. The group chose to diversify its assets by buying licenses that it considered lucrative and that it believed could bring new spectators, new fans, new buyers of derivative products. This is how the Walt Disney Company recently added Pixar, Lucas Films and Marvel licenses to its scope. All of them have been successful and have contributed to the development of the Disney brand and its brand image.
[...] Competition within the industry and threats from substitute products are Porter's forces for which the threat intensity is positive and, therefore, worsen Disney's overall position in Europe or in the European market. III. Conclusion and Strategic Recommandations Following this analysis, it seemed to us that Walt Disney was in a position that is largely favourable to it in its market and that the overall intensity of competition is really moderate. For the American leisure giant, it remains to return to growth, to continue its development, and to continue to inspire young and old and to continue the beautiful story of the two brothers in love with cartoons. [...]
[...] Porter's 5 Forces of Disney A. The Threat of New Entrants In the entertainment and leisure market, the threat of new entrants that could weigh heavily on Walt Disney seems relatively low. The barriers to entry, the astronomical costs of necessary investments, the difficult work of communication and publicity in order to benefit from an aura comparable to that of Walt Disney make the probability of new entrants quite low. Moreover, even if one or more companies were to emerge today, it would necessarily take them several years to become credible and feared competitors for Disney. [...]
[...] In other segments, on the other hand, such as cartoon production or the exploitation of licenses such as Pixar, Lucasfilm, the threat of substitute products is very low. Star Wars fans will not want to hear anything overall, about the possible substitution of saga episodes broadcasts or sales of merchandise. The threat of substitute products is therefore moderate or medium (with strong disparities by sub-segment). It does not represent a major risk for the Walt Disney Company but should not, therefore, be completely neglected, especially in certain segments or in certain categories. C. Bargaining Power of Clients The bargaining power of Walt Disney Company customers is weak. [...]
[...] Porter's 5 Forces – Disney I. Introduction A. Walt Disney The Walt Disney Company is an American company founded in 1923 and specializing in leisure and entertainment. The Walt Disney Company was originally a cartoon production studio, created and supported by the two brothers of the Disney family. Disney studios are the source of many cartoons that are now famous around the world: Mickey Mouse, Donald Duck, etc. The success of the Walt Disney Company was rapid from its inception. [...]
[...] This is therefore a reassuring element for Disney, a comfort zone that allows it to calmly contemplate the future in this area, and not to have any stress about it. E. Intra-Sector Competition Intra-sector competition is strong overall in the various segments of Walt Disney's business. In terms of content platforms, there are many alternatives and competitors. It's easy for users to cancel a Disney + subscription and switch to other platforms such as Netflix. Netflix remains the world leader in this area and could quickly re-cannibalise the segments won by Disney + since its launch. Barriers to exit are low, entry costs also negligible. [...]
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