Swot analysis of Disney. Walt Disney is a US entertainment conglomerate and mass media multinational company. Roy O. Disney and Walt Disney laid the foundation of Walt Disney Company on Oct 16, 1923. The headquarter of the company is in Burbank, California, USA.
Walt Disney Company started as animation and cartoon producing company. The brand diversified and began producing real-life movies, dramas, and TV series. However, the company has launched a corporation in 1986. It was to create quality content. Blue Sky Studio, Searchlight Pictures, 20th Century Studio, Lucasfilm, Marvel Studio, Pixar, Walt Disney Animation Studio, Walt Disney Pictures, and Walt Disney Studio are some subsidiary brands of the Walt Disney Company.
According to an estimate, the annual revenue of Walt Disney Company in 2020 was 65.388 billion dollars. Out of which, the net income of the company was -2.864 billion dollars. Approximately 223,000 people are working for the company.
Theme Parks, Television Programs, Cruise Lines, Motion Pictures, Resort Vacation Clubs, Plays, Radio Stations, Musical Recordings, Radio Network, Books & Magazines, Stationary, Video Games, Consumer Electronics, Toys, Cosmetics, Apparels, Home Décor, and Accessories are some of the top products and services of Walt Disney Company.
Time Warner Cable, Viacom, Comcast, Sony, and CBS are some of the company’s main competitors.
Today, we’ll discuss the swot analysis of Disney. It would give insight into the company’s performance, productivity, and growth. For external factors, check out the pestle analysis of Disney. Here’s the swot analysis of Disney as follows;
Strengths of Disney
The fans and people could easily recall the brand logo of Disney. It’s because all the movies and TV content have made a significant impact on people’s minds. According to an estimate by Interbrand, Disney ranked at the 10th position of the world’s most valuable brand. The company’s brand value in 2020 was 40.773 billion dollars, and it has dropped by -8% due to the pandemic of covid-19.
Professional Creative Team
Disney has a remarkable team of professional writers, graphic designers, and creative artists, and they all have a plethora of experience in the media industry. When they work together collectively in a single team, the output is fantastic.
Disney has built a strong reputation and network over the years. It gives the company an upper hand during the negotiation with dealers and distributors.
The net worth of Disney’s assets in 2020 was 201.549 billion dollars, and the operating cash flow was 8.108 billion dollars. It allows the company to launch different types of projects simultaneously.
Disney has established excellent relations with suppliers and distributors. It helps the company to smoothly run the cycle of production and distribution without interruption.
Large Cable Network
ABC and ESPN are also the subsidiary brands of Disney channel, and the company is running its cable network across the world. The brand offers the content in 34 different languages and more than 163 countries around the globe.
Weaknesses of Disney
Lack in Predicting
Disney’s designers and producers have difficulty predicting the next big idea. It results in the form of losing a lot of opportunities. Sometimes there’s a high demand for a particular type of content among the customers market. The competitor companies gather their resources to produce the content, and the company loses such opportunities.
Disney is making huge profits annually, according to its financial statements. But the company has had a loss of 700 million dollars in 2020. Some say it was because of the covid-19, but the company also had a loss of 1 billion dollars in 2018. The losses suggest the poor financial planning of the entertainment company.
Disney invests a plethora of resources and capital in the grooming and training of its workforce. They still aren’t delivering the required results.
Relying on the US
According to an estimate, approximately 77% of Disney’s revenue comes from the US market. It shows that the company overly relies on the US market for the sale of its content. The brand should diversify its earnings from different regions.
Opportunities available to Disney
Food & Beverage
Disneyland and the video content are the two significant sources of income of the brand. The company should consider launching its food & beverage to further diversify its income sources. Disney could exploit its theme and characters to sell its products.
As we know that Disney has the popularity advantage, and the company should invest more to promote the customers’ attraction rate. It’s because every studio offers a unique experience, and their uniqueness would also attract people. Therefore, the company needs to promote the attraction by offering something new.
Currently, Disneyland is operational in 3 continents; Asia, Europe, and North America. The company should launch Disneyland in other countries like China, India, Malaysia, Russia, Australia, etc. The USA is the primary earning market of the brand, and the expansion would help the brand diversify its income sources.
Disney’s content has created a plethora of famous characters over the years. The company can now use these characters for the video gaming industry and sell them to the game developers.
Threats Disney has to face
People have become very cautious about their data privacy and how companies would use their data. Disney has an extensive database of customers, and if hackers could get their hands on the company’s database. It would put the company at massive security and privacy risk.
According to an estimate, more than 50% of Disney’s lawsuits against Disney are from the tourists who are visiting Disneyland and get injured. Even though the company does its best to follow the safety and security measures, the brand should add an extra safety layer.
Treasure Island, Six Flags, and Universal Studios are some of Disney’s prominent competitors in the entertainment industry. Their content is unique and thrilling, and it has attracted the attention of many people. Their customers’ growth rate poses a significant threat to the entertainment company.
After a careful study of Disney swot analysis, we have realized that Disney is indeed the world’s leading content creating entertainment media company. The data security issues, competitors’ growth rate, and increasing operational cost are severe threats to its income. Disney should use its resources and brand image to expand into the various project to diversify.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.