History, Development, and Growth of Walt Disney
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History, Development, and Growth
Walt Disney ventured into animation in 1949 and undertook several changes in the industry to succeed. The company has undergone several strategic and leadership changes with death and exit of some of its top leadership. The company has acquired several businesses under and undertaken expansion and diversification of its products and services. The company currently is an immense corporation with different business units that cover the studios, consumer products, cruise line, parks and resort and broadcasting networks that can further fall into different subcategories. The corporation is proving to be the best haven of entertainment and information for clients globally. It has pursued expansion and reached market segments through acquired brands such as the ABC and the Miramax Films.
Internal strengths and weaknesses
The corporation has developed significant financial muscles and is continuously engaging innovativeness and diversification of its brands, which make it outstanding. The diversification of its portfolio and organizational culture innovativeness from its conception offer it a substantial advantage over other companies. The company has means of protecting itself against economic uncertainties. However, it has not set up to vigorously protect its brand image, and topple piracy. Its diversification strategy gives it a competitive advantage over other players in the same industry. To an extent, it does not get proper return on investment and experiences profit margin gaps that trouble it.
Analysis of the external environment
With the diversification of Walt Disney, the company is faced with the challenge of protecting its brand image. Its intangible assets as well pose more risk than the common traditional assets as the company boasts of more intangible assets.
SWOT analysis
On its strengths, the company has stable profit growth and revenue source with a diversified portfolio. The company brand has a global recognition and is responsive to the different market segments it ventures.
The weaknesses of the company start with the turnover of the top management. Its business unit structures also subject its operations to redundancy with no proper corporate control of its divisions. The company undertakes higher risk investments and come across several growth barriers in the course of its expansion.
The opportunity the company achieves is the continued expansion and growth through its further diversification. There are new markets available that the company can venture into for expansion and can penetrate further into its target markets. The company also has a potential of information and knowledge transfer thus enhancing its web presence.
Threats include the potential loss of control over the strategic business units. The Corporation also faces stiff competition from other players coupled with adverse publicity.
Corporate-Level Strategy
Disney is a widely diversified company with different strategic units broken further into subunits. The success of its products significantly contributes to its success and expansion, opening avenues for other businesses. It has engaged in international development a higher diversification of its products, with further localization to suit the diverse market segments.
Business-level strategy
For a long time, the company has developed diversification strategy that has since strengthened the business and contributed to its expansion. Its diversification has been related to the business activities that add to its competitive advantage.
Recommendations
The company should strive to protect its brand image and counter adverse publicity. Walt Disney can engage in succession development that will ensure proper response to the turnover, more so at the top executive that may cripple its operations. It should also focus on stable assets and rethink its investment in a manner that will give it enough returns.
Actions for Successful Changes
The executive each time need to identify resource requirements for each strategic initiative. Executive commitment is capable of yielding desired improvements and changes within the group. The company corporate culture should also be designed in a way that it is in line with the company strategies to achieve positive strategy execution.