Ownership of many other brands is a strength of the company; in addition, the content produced by the company is almost always of high quality. Disney’s trademark and its logo are easily recognizable – the company is widely known all over the world. The company’s high cash flow allows it to invest in other regional studios and profit from such investments. The firm’s weaknesses include high media and entertainment competition: no marketing or advertising as such. In addition, Disney offers virtually no new characters and stories, which quickly bores the public. Poor financial planning and a limited television audience are undoubtedly also are the company’s weaknesses.
One of the most obvious opportunities for the brand is purchasing other media such as 21st Century Fox. In acquiring major media companies, Disney Plus would gain all rights to the acquired company. This would provide the company with a more diverse method of generating profits and encourage Disney Plus to become a leader in the entertainment industry. Acquiring a new media company would be an ideal way to continue to grow. Digitalization and going online will also help us win new audiences and capture international markets.
The threat to Disney is the increased possibility of piracy of content produced by the company. Disney lacks the technology to secure the films it produces. The only way to keep it unique is to develop an app that provides Disney content only by subscription. Besides, Disney is spending large sums on human resources, employee development, and training, which could turn the firm into a financial crisis. Moreover, because of the constant problems with other countries, there may be problems with contracting with them.
Competitive Advantages
One of Disney’s competitive advantages is the company’s product diversification. This manifests itself in the fact that all lines of business are integrated into one system. Films for commercial distribution are the system’s core; the less significant elements are entertainment-related, including books and comics, music, television, amusement parks, and licenses. There is a strong interdependence between the main asset and the others. The Disney empire grows from its ability to produce family-friendly animated and feature films. However, the firm also develops its other assets, which contribute to value creation. It can be said that Disney exists because of these films and their characters and images.
It is in the ideas that most viewers find the competitive advantage of Pixar. The cartoonists’ ability to surprise the audience is indeed one of the studio’s greatest strengths. Another interesting feature of Pixar cartoons is the unexpected deception of the audience’s expectations. This element of surprise is inherent in almost every Pixar movie released. In Finding Nemo, one of the characters is a vegetarian shark; in Ratatouille, a rat-cook becomes an employee of a famous Parisian restaurant. All in all, skillful storytelling is a characteristic feature of the cartoons produced by the company and its competitive advantage.
Primary Challenges
For the new CEO, the challenge may be the need to maintain and overtake the growth rate of previous years. It is also important to capture current trends and maintain a dialogue with the public. The crisis in cable TV implies that the transition to other broadcast channels will be necessary. However, such an initiative will take a long time and many resources to implement. In addition, due to the lack of competence in the streaming service industry, the strategy may fail due to high risks.