Strategic Management of Walt Disney - Essay Example

The External Factor Evaluation (EFE) Matrix of Walt Disney is shown below:

Particulars

  Weight

Rating

Weighted    

   Score

 A

B

Opportunities:

1. Continued economic growth graph

1. Strong position in the corporate sector
2. Strong and increasing satellite radio subscribers
3. High Definition Television media is growing in demand and availability
4. globalization trends are popular fads

Threats :

1.     Current trends in lower economic growth

2.     Rising crude and energy prices

3.     Radio programs outgrow popularity

4.     Piracy is a major threat to this company

5.     Invasion of DVR like TiVo

0.075

0.050

0.150

0.100

0.150

0.050

0.200

0.050

0.125

0.050

      1.000

2

3

4

3

4

2

2

3

2

1

0.15

0.15

0.60

0.30

0.60

0.10

0.40

0.15

0.25

0.05

    (Duran, et al., n.d., p.23).

Plus-Minus Implications (PMI) of Walt Disney is shown below:

Particulars

  Weight

Rating

Weighted    

   Score

  A.      Plus :

1. A powerful and well-recognized brand

1. High entry barrier to new competitors
2. Well diversified unit
3. The dominant player in the industry
4. Capable of high resource mobilization

    B.    Minus  :

1. Changes in top management
2. Declining trends of recent box offices
3. Large burgeoning workforce
4. Control over costs seems difficult

0.075

0.050

0.150

0.100

0.150

0.050

0.200

0.100

0.125

      1.000

2

3

4

3

4

2

2

3

2

1

0.15

0.15

0.60

0.30

0.60

0.10

0.40

0.30

0.25

0.05

Time Warner AOL:

Perhaps one of the major competitors for Walt Disney (WD) is Time Warner (TW), which has relegated WD to second place. Time Warner is a major conglomerate that is able to offer stiff competition to WD. One of the major areas in which TW scores over WD is the numerous diversifications that they have made. They have assumed market leadership in almost all their endeavors, and they also have a strong presence in internet technology, movies, television, and publishing segments. The emphasis and efforts that TW has provided to unbridled growth have paid off and this along with their loyalty and commitment has made them what they are today- unqualified leadership in the entertainment and media industry. 

News Corporation:

Another name in the reckoning is that of News Corporation, which again has drawn heavily from its diversification plans, both in the US and abroad. As a matter of fact, the non-US revenues of NC are much higher than that of its US earnings, which is one of the main reasons that it has sustained itself in the market for long, and provided strong competition to giants like Walt Disney, Time Warner, etc.

Strategic Management decisions which WD needs to take:

Coming to Walt Disney, this corporation needs to undertake massive diversification and expansion plans, in line with what its major competitors are doing. This could be seen in making a more emphatic presence in areas like digital cable, video-on-demand services, and owns cable networks.

Again it also needs to trim its workforce and make it more accountable and productive. By pursuing a lean yet efficient workforce strategy, it could become more efficient and cost-conscious. Besides, there is a need for a greater degree of streamlining its resource systems and adopting strategic plans in tune with the current requirements of the business to remain on top.