Disney company-pest analysis and strategy
Strategy management
The Walt Disney Company
1. Introduction
This assignment will introduce the background and summary of the Walt Disney Company at the beginning. Then its external and internal environments will be analyzed specifically by method PESTEL and SWOT. Thirdly, a brief present strategy of Disney will be explained. Finally, the strategy formulation and some recommendations will be applied to the company. 2. Introduction of The Walt Disney
2.1. Company summary:
Name: The Walt Disney Company
Founders: Walt Disney and Roy O. Disney
Founded: 1923
Headquarter: Burbank, California, United States
Industry: Mass media
Area served：Worldwide
Employees: 180,000
Vision: To make people happy
2.2. Background:
The Walt Disney Company is an American diversified multinational mass media corporation, which is commonly known as Disney (Sammond, 2005). It is the world's second largest broadcasting and Cable Company. However, it was only established in animation industry by Walt Disney and Roy O. Disney in 1986. With the continuous development, the company begins to diversify its industry and products into television, live-action film production and theme parks (Ayres, n.d).
(Table 1, Appendix 1: There are five business segments of the Walt Disney Company)
3. External analysis:
Basically, there are three terms for analyzing the external environment: macro-environment, industry and competitive analysis (‘PEST Analysis’, 2004). In this essay, a specific method PESTEL analysis will be mainly applied to elaborate the external environment of the Walt Disney Company.
3.1 PESTEL Analysis:
Table 2： PESTEL Analysis:
Political
Tax benefits for the animation industry
Tourism policy
Facilities are provided in the special economic zone
Tighter regulation of product safety
Economic
General economy growth in global
Economic downturn in Western Europe in 1993
Inflation and Devaluation of Currency
Growth of entertainment industry in Emerging markets
Cost advantage in
The Walt Disney Company
1. Introduction
This assignment will introduce the background and summary of the Walt Disney Company at the beginning. Then its external and internal environments will be analyzed specifically by method PESTEL and SWOT. Thirdly, a brief present strategy of Disney will be explained. Finally, the strategy formulation and some recommendations will be applied to the company. 2. Introduction of The Walt Disney
2.1. Company summary:
Name: The Walt Disney Company
Founders: Walt Disney and Roy O. Disney
Founded: 1923
Headquarter: Burbank, California, United States
Industry: Mass media
Area served：Worldwide
Employees: 180,000
Vision: To make people happy
2.2. Background:
The Walt Disney Company is an American diversified multinational mass media corporation, which is commonly known as Disney (Sammond, 2005). It is the world's second largest broadcasting and Cable Company. However, it was only established in animation industry by Walt Disney and Roy O. Disney in 1986. With the continuous development, the company begins to diversify its industry and products into television, live-action film production and theme parks (Ayres, n.d).
(Table 1, Appendix 1: There are five business segments of the Walt Disney Company)
3. External analysis:
Basically, there are three terms for analyzing the external environment: macro-environment, industry and competitive analysis (‘PEST Analysis’, 2004). In this essay, a specific method PESTEL analysis will be mainly applied to elaborate the external environment of the Walt Disney Company.
3.1 PESTEL Analysis:
Table 2： PESTEL Analysis:
Political
Tax benefits for the animation industry
Tourism policy
Facilities are provided in the special economic zone
Tighter regulation of product safety
Economic
General economy growth in global
Economic downturn in Western Europe in 1993
Inflation and Devaluation of Currency
Growth of entertainment industry in Emerging markets
Cost advantage in