Walt Disney Company’s Vision: Threats and Opportunities

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The major threats to the organization’s ability to serve its stakeholders and make its mission a reality

Understanding external environment surrounding any business is paramount for its success. The external analysis involves knowing your customers, competitors, technology, pricing influences, laws, suppliers, partners, lifestyle and work style changes, regulation and the macro-economy in the market. These may pose a threat or an opportunity to the business (Porter, 2006).

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The mission of Walt Disney is to provide entertainment services to its customers through advertisement and good hospitality. Walt Disney’s stakeholders are the employees, customers, shareholders, and the executive board members (Walt, 2011). However, there are external threats that interrupt services for the stakeholders and fulfillment of the mission.

Watt Disney being in entertainment industry faces challenges with the new technological trends, automation and new technological incentives that arise every day because the technological experts invent new multimedia technologies continuously (Middleton, 2010). The company faces many of these challenges because it aspires to reach the whole world. In addition, the industry uses technological devices to fulfill the advertising and entertainment requirements because the customers choose the best technology in the market to advertise their products.

Social factors affecting the customers hinder the ability of Watt Disney to achieve its mission. Such factors are the health considerations, increase in the number of people, varied ages, career aspirations and the security (Middleton, 2010). These demographic trends have a greater impact on the company because of the differences in the customers’ tastes and preferences. This is an external threat, which if not adequately controlled may bring down the company (Hardon, 1996).

Customers may seek for alternatives to what Watt Disney is providing as a service. Substitutes have been the most threatening factor in any business because customers tend to go for the cheaper services that will satisfy their needs (Harvard, 2006). Advertisement for example might be too expensive when you use a specialized advertising agency like Watt Disney and as a result, customers will seek for alternatives like using their websites, brochures and billboards. The low-cost digital camcorders and the video-editing software coupled with easy internet access by many people have led to the user-generated content. This means that people can get entertained at home by generating what they want without going for external entertainments (Stearns, 2006).

The major opportunities available to improve the organization’s ability to meet the needs and make the vision a reality

Walt Disney aims at being the best company in the entertainment industry in the world. This is achievable because there are opportunities that if used appropriately, will enable the company realize its vision (Walt, 2011). Watt Disney’s greatest opportunity is in line with the industry in which it operates. In addition, the media industry is broad with several areas of entertainments that it can pursue such as the print and electronic mass media such as television, radio, magazines and newspapers. There are also areas such as gambling, gaming, the tele-visual and music production industries such as theatre and cinema and the entertainment places such as pubs and clubs (Hardon, 1996).

Watt Disney is intending to reach out to the whole world, as the international market is a great opportunity with a wide range of audience. The company will undertake a market research to know the customers’ needs and then fulfill them. A wider reach will be of benefit to the company because this will create recurrent customers. The fact that the market segments are wide including media networks, studio entertainment, consumer products, parks and resorts will enable the company reach many customers within a short time (Stearns, 2006).

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Market liberalization in most countries is an opportunity for Watt Disney. With the modern information, many countries have loosened their laws and regulation regarding the entertainment industry, international market entries, advertising and other forms of liberation. Therefore, companies’ managers are free to interact with the international bodies and agencies to improve their efficiency. Watt then, will have an opportunity to enter most of the countries that have liberalized their markets (Porter, 2006).

Another opportunity that exists for watt Disney is the innovative technology it has embraced and the skills and knowledge of its employees as envisaged in the goals and objectives. The fact that entertainment industry is wide and involves the use of various technologies that Watt is ready to embrace as well as the expertise it intends to invest in, will give it a competitive edge over others. The company should focus on the highest quality service provision in the market (Walt, 2011).

From the above analysis of the threats and opportunities in Watt Disney it is clear that for a business to achieve its mission, vision and the objectives set, it has to analyze its external environment so that it can utilize the entire opportunities available and evade the possible threats. Organizations should therefore, scan the external environment they are operating in to assess their threats and opportunities so that they can meet the needs of their respective customers satisfactorily.


Hardon, L. (1996). Entertainment and the entertainment industry: Forecasting the future of multimedia. Edinburgh: University of Edinbugh.

Middleton, J. (2010). Strategic management: PEST Analysis. Web.

Porter, M. (2006). Swot analysis: looking outside for threats and opportunities. Boston: Harvard Business School Publishing.

Stearns, B. (2006). Entertainment industry: The long tail, equity research. Bear: Stearns and Co. Inc.

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Walt, D. (2011). Annual reports: FY 2011. Web.

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