Disney Competitive Strategy

902 words 4 pages
Walt Disney Company was founded in 1923 and now has become a world leader in the entertainment industry. Diversification of products and services is a strategy that Disney clearly focused on in order to establish a competitive advantage in the entertainment market. Over the years it has diversified into 5 different business lines showing that it’s ‘magic’ comes from its many synergies.

Over the years it has developed a very strong and well known "brand-name" over many years and its products are more ‘Disney’ than an actual product. This has lead to high brand loyalty as for most people it has no substitute and given the organization the ability to adapt when business lines perform poorly. e.g. when theme parks were not doing well, new
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Large emphases were placed on employee participation, especially on the most talented employees. Furthermore, the company was frequently refreshing its top management with new executives as top managers from the entertainment and the financial business bring with them new ideas and concepts which. It also maintained strict cost controls in an industry where cost overruns were very common.

As stated by Stalk et al, they key to transform a business process into a capability is to connect them to real customer needs as capabilities begin and end with the customer. Disney Company made sure it did precisely that, it anticipated market trends and responded quickly to customer needs. It expanded from just animated shorts to cartoons and when demand was around it expanded to PG and adult movies. This similar strategy was used in its expansion into other business sectors. Furthermore, it had a first mover advantage, Disney created Buena Vista Distributions which helped cut down cost, it was the first to create theme parks etc. Disney also took advantage of external opportunities presented such as the deficiency in the movie market for young children.

Disney success is also largely due to its resources, superior experience, and its low-cost strategy, which has minimized its financial risks. Finally, due to the success of the CEO’s and diversified