A company usually starts a SWOT analysis by studying its strengths, such as a strong brand name or good reputation, and weaknesses, like inexperienced management or poor distribution. Subsequently, an external environment SWOT analysis enables a company to ultimately determine how it can exploit its strengths and minimize weaknesses to compete. Significance The external environment SWOT analysis is a detailed look at the industry in which a company operates. Any company that sells a product or service needs to know the competitors it faces in the market, what about its products makes it competitive and what the company can do to remain competitive in the marketplace.
Strong growth of online TV and online movie rental Strengths Strong product portfolio. Walt Disney brand has been known for more than 90 years in US and has been widely recognized worldwide, especially due to its Disney Channel, Disney Park resorts and movies from Walt Disney studios.
One of the strongest sides the company has is its competency in acquisitions. The former 2 acquisitions have already proved to be very successful in terms of revenue and profit growth. The third acquisition is expected to be just as successful because Disney has acquired rights to all of the Lucasfilm previous works including Star Wars.
Few other Disney competitors have had such record of successful acquisitions. The business operates five different business segments: Due to such diverse operations, Disney is less affected by changes in external environment than its competitors are.
Recently, Disney has started adapting its products to suit local tastes. This is rarely initiated by the movie studio itself and is something that few other studios are doing.
Weaknesses Heavy dependence on income from North America. Although, Disney operates in more than countries, it heavily depends on US and Canada markets for its income.
Few opportunities for significant growth through acquisitions. The Walt Disney Company is the largest entertainment provider in the world and has become so due to acquisition of competitors. Otherwise, Disney may become a subject to antitrust laws.
Opportunities Growth of paid TV industries in emerging economies. The similar growth is expected in India as well. Disney Company has already entered these markets and should continue to strengthen its position there to benefit from such high industry growth.
Expansion of movie production to new countries. Disney has an opportunity to expand its movie production to such countries as India or China, where movie production industries have developed good quality infrastructure.
Disney operates in very competitive industries such as media, tourism, parks and resorts, interactive entertainment and others. The competitive landscape changes quite drastically in the media industry, where news and TV go online and new competitors with new business models compete more successfully than incumbent media companies.
This results in growing competitive pressure for Walt Disney Company.
The advancements in technology allow copying, transmitting and distributing copyrighted material much easier. Strong growth of online TV and online movie renting. Subscription to online TV streaming and movie rental websites costs much less than to usual cable television providers.
In addition, internet infrastructure is often managed by different companies, thus taking the power away from cable network providers.
Sources The Walt Disney Company Best Global Brands in A Fairy Tale Growth Story. The Walt Disney Company.The corporation’s strengths and weaknesses (internal factors) must suit the opportunities and threats (external factors) in its international industries.
The Walt Disney Company must possess the strengths to withstand the negative effects of weaknesses and threats in its industry environment. The external environment are those factors that occur outside of the company that cause change in organizations and are, for the most part, beyond the .
A SWOT analysis is a comprehensive look at a company's strengths and weaknesses, or internal factors, as well as external factors it faces in the market.
Internal and External Factors: Disney Corporation Essay Sample. The Disney Corporation is a leading diversified international family entertainment and media enterprise with five business segments: media networks, parks and resorts, studio entertainment, consumer products and interactive media.
An internal factor has to do with the strengths and weaknesses in an internal organization while an external factor refers to the opportunity or threats presented by the external environment.
A multinational corporation like Disney faces many internal weaknesses and strengths. Environmental Factors in Strategic Planning. For any business to grow and prosper, managers of the business must be able to anticipate, recognise and deal with change in the internal and external environment.