Walt Disney SWOT analysis 2013
Strengths Weaknesses
1. Strong product portfolio
2. Brand reputation
3. Competency in acquisitions
4. Diversified businesses
5. Localization of products 1. Heavy dependence on income from North America
2. Few opportunities for significant growth through acquisitions
Opportunities Threats
1. Growth of entertainment industries in emerging markets
2. Expansion of movie production to new countries 1. Intense competition
2. Increasing piracy
3. Strong growth of online TV and online movie rental
Strengths
1. Strong product portfolio. Walt Disney’s products include broadcast television network ABC and cable networks such as Disney Channel or ESPN, which is one of the most watched cable networks in the world. Combining the significant audience reach of these cable networks, (ESPN has nearly 300 million and Disney Channel 240 million subscribers) and the solid growth of cable television, Disney’s product portfolio provides a competitive advantage for the company over its competitors.
2. Brand reputation. Walt Disney brand has been known for more than 90 years in US and has been widely recognized worldwide, especially due to its Disney Channel, Disney Park resorts and movies from Walt Disney studios. The company is perceived as the primary family entertainment provider and was the 13th most valuable brand (valued at $27.4 billion) in the world in 2012.
3. Competency in acquisitions. One of the strongest sides the company has is its competency in acquisitions. The Walt Disney Company has acquired Pixar Animation Studios in 2006, Marvel Entertainment in 2009 and Lucasfilm in 2012. The former 2 acquisitions have already proved to be very successful in terms of revenue and profit growth. The third acquisition is expected to be just as successful because Disney has acquired rights to all of the Lucasfilm previous works including Star Wars. Few other Disney competitors have had such record of successful acquisitions.
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