The nine-cell attractiveness matrix from Disney shows three elements. Individual, relative, and collective matrices are among the variables. The competitive strength of the business is affected by these factors. Market size, development, risk, capital needs, threats, rivalry, and environmental factors are just a few of the variables that affect each person. The relative attractiveness gauges how well the business is rated in comparison to its opponent. The market-share price, pricing regime, leverages, fits, competencies, brand reputation, and profitability of Disney are used to assess its competitiveness. Three cells are graded medium, while six are high.
The business strategy of an organization has an impact on its development. Five factors form the foundation of the Walt Disney Company’s competitive strength:
- Brand distinction.
- Successful purchases.
- A strong array of businesses.
- Market with variety.
- Localization of the product.
Walt Disney films are well-known around the world. The company’s reputation for its brands gives it a competitive advantage. Successful acquisitions: Its development was impacted by the transformation of the acquired enterprises. The difficulties that many businesses confront during acquisitions may have an impact on their growth. Marvel and Pixar Studios’ purchase demonstrates its aptitude for acquisitions. Solid business units: The daily revenue generated by Disney’s business units points to a solid business portfolio.
Its television broadcast had between 300 million and 450 million subscribers in 2012 and 2013, respectively (Macrotrends, 2022). Sales of the company’s products were impacted by the competitive advantage inside the portfolio. The company’s robust product lineup has an impact on its level of competitiveness. In terms of market diversification, Walt Disney has divided its business operations into five categories: studio networks, digital entertainment, parks, media broadcasts, and merchandise. Regarding the products localization, the business adapts its offering to the needs of regional customers. Business organizations find this tactic challenging. To appeal to the Chinese market, Walt Disney dubbed its movie. In China, it expanded the market of its consumer goods. A business that possesses these traits will thus maintain its existence. The business has done well in terms of both its long-term appeal and corporate strategy.
Disney has expanded its business beyond the standard theme parks, films, television shows, clubs, and books. Disney Cruise Line, hotel properties, broadcast radio, musical recordings, the selling of animation art, the NHL team Anaheim Mighty Ducks, interactive software, and websites are just a few of the companies it is involved with. As long as there is a synergy that improves Disney’s position in the market and generates value for its shareholders, it doesn’t matter if these firms are tied to Disney’s main business or not. With a few small exceptions over the course of its existence, Disney has always demonstrated genuine value to shareholders produced by synergies from careful diversification.
In recent years, The Walt Disney Company has succeeded in balancing shareholder interests. While sales have not increased significantly, net income has almost doubled. Disney has also completed a few significant purchases that should support its expansion over the coming few years. With a current dividend yield of 1.6 percent, analysts predict an overall return of roughly 10 percent (Macrotrends, 2022). Disney is creating shareholder value, as the dividend and buybacks are both attractive. The increase in share price is the main narrative here, and the business has demonstrated a readiness to expand through significant acquisitions. It has proved that it is capable of giving shareholders their earned wealth back.
Reference
Macrotrends. (2022). Disney Net Income 2010-2022. Web.