Stratigic Audit of Disney Company

A Strategic Audit of Disney
Company
Prepared by Group (4)

Hany Hosny Mahmoud Osama
Mostafa Maged Mohammed Shreif
Supervised By:
Dr/Tamer Karam
 Background
 Founded in 1993 by Walt & Roy
Disney as an animation studio.
 For over nine decades has been
one of the biggest entertainment
companies in the world.
 Disney has been able to adapt to
new businesses and still increase
it profitability in a competitive
market throw M&A.
 Mission: To provide high quality
family entertainment.
 Vision: is to be one of the world
leading producers & provider of
entertainment & information.
 Walt Disney Segment Analysis
3%
8%
Media networks
13% Parks & resorts
45% Studio entertainment

Consumer products
Online streaming ser-
vices
31%
Source: Annual Financial Report

Financial performance
revenue in billions
80 69.907
65.38867.418
59.434
60 52.46555.63255.137
48.813
42.27845.041
38.06340.893
revenue in billions
40
20
0
10 11 12 13 14 15 16 17 18 19 20 21
Source: macrotrends financial website.

 Disney Revenue per Regions/2021
10
% 3%
10% Nourth America

Europ
Asia Pacific
latin America & oth-
ers
77%
Source: Statista.Com
 Dilemma in terms of Strategy
- Disney Acquisitions
Brand Activities Benefit Of Acquisition
Capital cities/ABC/ESPN TV & radio broadcast and Vertical integration &
cable networks accesses to world of sports
Pixar Animation studios New characters and new

tech. in animation
Marvel entertainment Film production & comics Super heroes characters &
franchises
Lucas film Film studios Star Wars franchise
Moppets Kids franchise New characters
FOX family channel TV cable Channels Accesses to teen & young
adult audience
21st century FOX Movies, TV & cable To compete in online
production & distribution streaming, FOX franchises
(also 30% stake in and access to global market
Hulu ,SKY network &
national geographic)
 Competitive portfolio matrix
Disney CBS Time Warner
Critical success
factors weight rate Score rate score rate score
Advertising 0.2 3 0.6 2 0.4 3 0.6
Product quality 0.15 4 0.6 2 0.3 2 0.3
Price competitiveness 0.12 2 0.24 1 0.12 2 0.24
Management 0.1 2 0.2 3 0.3 3 0.3
Financial position 0.1 2 0.2 3 0.3 4 0.4
Customer loyalty 0.1 3 0.3 2 0.2 2 0.2
Global expansion 0.11 4 0.44 1 0.11 1 0.11
Market share 0.12 3 0.36 1 0.12 3 0.36
TOTAL 1 0.294 1.85 2.51

 SWOT Analysis (Internal)
 Strengthens
 Diversification
 Responsiveness
 Brand recognition
 Creative process
 Astute assessment of acquired companies
 Systemic exploit of there creative content
 Weakness
 High risk factor
 Large costs in R&D
 Weak presence in OTT video streaming industry
 Internal Factors Analysis of Disney
Factor Weight Rate Score Comment
strengths
Has a presence in almost every
1- Diversification 0.1 3 0.3
entertainment industry
2- Responsiveness 0.025 2 0.05 Adaptation to market changes
3- Brand recognition 0.025 5 0.125 Disney brand is hedge
4- Creative process 0.05 3 0.15 New content with a large library
5- Astute assessment of acquired Almost every integration was beneficial
0.1 4 0.4
companies except few
6- Systemic exploit of there When they have a hit move for example
0.2 5 1
creative content it affect on all there businesses
Weaknesses
Entertainment industry is vary risky and
1- High risk factor 0.3 4 1.2
unstable
2- Large costs in R&D 0.05 5 0.25
3- Weak presence in OTT video
0.15 1 0.15 Was too late IN THIS RACE
streaming industry
 SWOT Analysis (External)
 Opportunities
 Growth throw farther diversification
 increase in media network production market share
 new global markets
 change in technology & consumer consumption
 Threats
 Economic recession
 Change in technology & consumer consumption
 Intellectual properties
 Uncontrollable changes in travel & tourism
 Entry of new competitors
 Issues with antitrust authorities
 Digital content piracy
 External Factors Analysis Of
Disney Factor Weight Rate Score Comment
Opportunities
1- Growth throw farther diversification 0.1 3 0.3 Other types of entertainment
2- increase in media network production 0.05 3 0.15
market share
3- new global markets 0.05 4 0.2
4- change in technology & consumer 0.2 1 0.2 Rise of direct to consumer & OTT video
consumption streaming
Threats
1- Economic recession 0.05 4 0.2
2- change in technology & consumer 0.2 1 0.2
consumption
3- Intellectual properties 0.05 4 0.2 Expiration on properties Intellectual
rights
4- uncontrollable changes in travel & 0.025 3 0.075 A threat to theme parks
tourism
5- entry of new competitors 0.15 3 0.45 Apple, Facebook , Amazon & Alphabet
6- issues with antitrust authorities 0.05 2 0.1 Reduce opportunity to specialized
companies
7- Digital content piracy 0.075 2 0.15 Rise of direct to consumer & OTT video
streaming
 Strategic Factor Analysis Summery
Duration
Recommendations
Strategic
weight rate score
factors
short intermediate long
Create a customized/ targeted

S2&3O1 0.1 3 0.3 X X media advertising plan for all
segments
Expand Disney parks & resorts

S3  O3 0.05 4 0.2 X
to new markets
R&D into story telling to kids

S4 O4 0.2 1 0.2 X X
through technology
Digitize content to utilize

S2&4 O4 0.2 1 0.2 X
technology & lower costs
R&D plan around emerging

W2 0.05 5 0.25 X
markets with low costs
Develop plans to prevent

S2  T7 0.075 2 0.15 X X
piracy
Acquiring a suitable gaming

S5&6  0.1 4 0.4 X companies to enter this huge
Thank You
G4

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A Strategic Audit of Disney

Prepared by Group (4)

45% Studio entertainment

Source: Annual Financial Report

Source: macrotrends financial website.

10% Nourth America

Pixar Animation studios New characters and new

Advertising 0.2 3 0.6 2 0.4 3 0.6

Product quality 0.15 4 0.6 2 0.3 2 0.3

Price competitiveness 0.12 2 0.24 1 0.12 2 0.24

Management 0.1 2 0.2 3 0.3 3 0.3

Financial position 0.1 2 0.2 3 0.3 4 0.4

Customer loyalty 0.1 3 0.3 2 0.2 2 0.2

Global expansion 0.11 4 0.44 1 0.11 1 0.11

Market share 0.12 3 0.36 1 0.12 3 0.36

TOTAL 1 0.294 1.85 2.51

Create a customized/ targeted

Expand Disney parks & resorts

R&D into story telling to kids

Digitize content to utilize

R&D plan around emerging

Develop plans to prevent

Acquiring a suitable gaming

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