Disney Case Analysis

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SWOT Strengths 1. CEO Bob Iger worked his way up from the ABC side of the business. Is very knowledgeable of the all the details in all the sectors of Disney. 2. They continue to invest in expanding their brand, especially after acquiring such rivals as Pixar and Marvel. 3. Disney’s stock price has consistently outperformed the S&P 500, indicating that their financial health is superior to the top 500 companies trading on the exchange. | Weaknesses 1. Communication distance between executives and front line management. Since the previous CEO placed many of his friends on the board, their interests to grow are not in line with that of their front line management. 2. Theme park management is not as efficient as it should be relative to its price. Their low pay structure does not incentivize their employees to grow with the company. | Opportunities 1. Market demand is very high for their media networks, thus allowing them to influence their viewers by advertising (cross-selling) other aspects of their business (theme parks, cruise line, etc.) 2. International interest has allowed them to expand their brand worldwide, which will give them the opportunity to introduce different, relevant, product lines all throughout the world (based on regional market interest). 3. Lack of competition in their theme park business allows them to price themselves at a higher pricepoint. | Threats 1. Pricing is too high. While they are succeeding now, the increase in technology is causing for the younger generation to have a different mentality due to their shorter attention spans. They are less likely to want to pay outrageous prices to visit a theme park that does not return an efficient experience. 2. They have been heavily reliant on their movies to push their brand, and with a struggling movie industry as of late it may be more difficult to push their

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