Pestle analysis of Disney. Walt Disney Company is a mass media and an entertainment conglomerate. Walt Disney and Roy O. Disney were the founders of Walt Disney, and they established the company on October 16, 1923. The headquarter of the entertainment company is situated in Walt Disney Studios, Burbank, California, USA.
Walt Disney Company’s principal products/services are Musical Recordings, Radio Stations, Magazines & Books, Resort Vacation Clubs, Video Games, Motion Pictures, Consumer Electronics, Cruise Lines, Cosmetic, Television Programs, Apparel, Theme Parks, Home Décor, and accessories.
Walt Disney Company’s top subsidiary brands are Marvel Studio, Lucasfilm, Pixar, 20th century Fox Presentation, Walt Disney Animation Studio, Searchlight Pictures, Walt Disney Pictures, Blue Sky Studio, and Walt Disney Studio.
According to a financial estimate, Walt Disney Company’s annual revenue was 65.388 billion dollars by the end of 2020. Out of which, the entertainment company’s net income was -2.864 billion US dollars. The brand has employed roundabout 223,000 employees to manage various operations of the company worldwide.
Today, we’ll study the pestle analysis of Disney. Here we’re going to focus on the macro-environmental factors of the mass media and Entertainment Company. For internal factors, check out the swot analysis of Disney. Here’s the pestle analysis of Disney as follows;
Political Factors Affecting Disney
Intellectual Property Regulations
Like amusement park themes and media entertainment video content, the content of Walt Disney falls under intellectual property rights; IPR plays a significant role when an entertainment company goes global. They vary from country to country depending upon the political environment. The definition of IPR in various countries is different.
Trade Policies
The trade policies and government regulations shift with the changing political environment. For instance, the Chinese government imposes a high level of censorship on video content. Sometimes you have to cut down the whole episode to conform to their laws.
Opinionated Political Views
The management of Walt Disney Company is opinionated about the political circumstances. Their political views impact the reputation and fans of the company. For instance, the CEO of Disney, Igor, criticized the former President of the US, Donald Trump, on the Las Vegas massacre that killed one of the employees of the company. In his post, he mentioned that Trump’s fans are quiet about gun-related violence and furious about the athlete not standing during the national anthem.
It doesn’t matter whether such views are right or wrong, but they impact the company’s brand image and customer base.
Economic Factors Impacting Disney
US Market
Amusement Parks and resorts in the USA are a great source of Disney’s revenue. In fact, they contribute a majority part in the company’s total income. In other words, the entertainment brand is heavily reliant on the US market. The economic circumstances in developing countries are changing; the emerging market expansion would reduce the risk factor.
Asian Market
Asian countries like Japan, China, Singapore, Malaysia, India, and others have a growth rate. People have extra disposable income, and they would be willing to spend it in Disneyland’s amusement parks and resorts.
Economic Recession
According to an estimate, Disney has lost more than 700 million dollars during the economic crisis. The mass lockdown, the shutdown of parks and businesses, and social distancing have made things worse. It has dropped Disney’s annual revenue by 6.06% and net income by 125.91% in 2020.
Social Factors Affecting Disney
Customers’ Behavior
The people’s attitudes and behavior toward amusement parks, TV shows, video games, and movies significantly impact the Walt Disney Company. It’s because the company is in the entertainment showbiz industry. Therefore, the company needs to set its strategies based on the expectations and attitudes of people. That’s why feedback from the customers is significant for the entertainment media company.
Online Streaming
The trend of online video streaming and online purchasing has increased significantly. People love to spend their leisure time watching something online and ordering it online. Disney should keep in mind these and promote its online services accordingly.
Cultural Diversity
The acceptance level of cultural diversity has increased among the public. It’s favorable to the business of the company. Disney can now produce culturally diverse content and target all the audience.
Technological Factors Impacting Disney
Usage of Technology
Walt Disney has been using technology to manage its social media platforms like Facebook, Google, Twitter, and LinkedIn and its platform’s online video streaming. Technology has allowed the company to become a multinational brand and produce content that wouldn’t have possible without it. The brand is also using the technology at its parks and resorts.
Research & Development
The competitor studios are also using the same and even better technology. It demands the company to come up with innovative technology by investing it in research and development. Disney has been using advanced computers and the latest technology to offer a better quality product.
Video Games
Disney has also exploited its prominent characters and used them in the videos. They’ve become very popular among video gamers. Some of the top games are Beauty and the Beast, Hercules, The Lion King, and The Little Mermaid.
Legal Factors Impacting Disney
Government Regulations
Government laws and regulations decide Disney’s operations, especially the European and the US regulations for entertainment companies like Disney have a strategic impact. Since the company has a park, therefore, it needs to follow environmental protection laws.
Consumer Protection Regulation
Disney is a global multinational brand; its consumer protection and safety regulations would send a positive image of the company. The company faces over 50% of the lawsuits due to its parks’ safety and injury issues.
Environmental Factors Affecting Disney
Environmental Challenges
The environmental and ecological issues are relevant and impact Disney in many ways. Like worsening climate cycles, resource availability, and unpredictable events are some of the tops. The company now faces the challenge of how to address these issues and work with them accordingly.
Conclusion: Disney PESTLE Analysis Example Company
After a careful study of Disney pestle analysis, we have concluded that Walt Disney is undoubtedly the world’s top entertainment company. Intellectual property rights, regulations, tech innovations, and changing social trends are some significant issues. Disney should pay heed to the external political, economical, social, technological, legal, and environmental factors impacting the company.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
