Environmental Analysis of Disney

Case Study
Pages 3 (753 words)
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Disney is one of the leading companies in media and entertainment industry. External environment determine strategic planning and long-term goals selected by the company, its cause of action and new approaches to business. In modern business environment, successful long-term strategy can be defined as balancing the customer and the competencies of the organization.


The main challenges faced by Disney will be changing technology and constant need for technological innovations, strict environmental laws and regulation demanding safe and clean production. Demographical factors will change traditional target audiences and require new planning and market segmentation. Industry environment will be affected by (1) fierce competition, (2) new industry structure and (3) globalization of the entertainment industry. The view of competition as market power no longer suffices in the long run. This is due to the fact the survivors of decades of fierce global competition all seem to be converging on similar and formidable standards for product cost, quality, and timeliness. In this case, Disney managers need to look at the internal competencies of their corporations to secure long-term survival. Operating environment will be affected by (1) 'know-how' business solutions and (2) rapid growth of the Internet and e-commerce. The main changes will affect operating environment and will help the company to create competitive advantage, improve sales and performance management. For the innovation of new ideas to be successful a high degree of integration is needed between all concerned (e.g. engineering, production management and marketing). ...
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