Company analysis. Walt Disney Company Case Study. Management Case Study Assignment.

WALT DISNEY COMPANY CASE STUDY
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Walt Disney Company Case Study
1 Introduction
Walt Disney is a famous company in the entertainment industry. It started as Walt Disney brother’s studio started by Disney and his brother in 1923. The company gained more fame in the entertainment industry in 1955 when it opened a studio branch in California that started showing 2D cartoon shows. The company made a massive development in the entertainment industry for its creative minds, funny cartoon stories, and fancy technology. Despite the company making an enormous development in the entertainment industry, it has been faced with a challenge to maintain the top position in the entertainment industry. There have been stiff competition from other entertainment companies such as century fox, time warner Inc., Viacom Inc., and many more companies in modern society. Other companies such as Netflix have proved to be a real threat to Walt Disney in the market. As analyzed by Wasko (2020), the strategic issue has proved to be a real challenge for DisnCompany. There have been strategic issues that have been observed in Disney management plans and strategies. For example, when other companies realized sports was another area to add to the entertainment industry, they quickly included games in their catalog, which pulled a significant share from the market. Disney did not pay attention to this, which made it lose more youths who could get both movies and sports entertainment from other companies. The company also focuses most of its strategy on providing the required entertainment to its customers. This plan used to work well initially, but it did not even consider the change in the taste of the consumers, which is crucial. Consumers do not rely only on one preference, but the company has failed to provide enough for consumer preference changes. Pricing has also been a significant threat to the company, as most new companies are utilizing the cheap internet to lower their prices. Flexibility in technology has been another strategic problem for the company. This has been seen by new live streaming features, which has taken time for the company to incorporate them into its services. These are just some of the strategic mistakes that have made Disney maintain its top position in the modern entertainment industry.
2 Analysis
The Five Competitive Forces 
The five forces model focus on the various factors that can affect the business operations of a company.
The threat of New Entrants
Walt Disney Company is part of the mass media and the entertainment industry. The industry has well-developed corporations like Disney. This has made it difficult for some companies to compete against such businesses. For a company to be well established in the entertainment and media industry, a lot of capital is needed. Improved technology and human capital are also required for such a company to remain competitive. Therefore threat to new entrants is low.
Bargaining power of buyers
The media and entertainment industry belong to various socio-economic status and different age groups. This provides Walt Disney with an opportunity to develop and innovate new products in every segment. Additionally, the customers of Walt Disney have well-developed brand loyalty, and this makes it difficult for the customers to engage in bargaining of the prices. Even though the company will decide to increase the prices, the consumers will still purchase their products. The number of buyers will decline. Therefore the bargaining power of the buyers at Walt Disney is low.
Bargaining power of the suppliers
Some of the suppliers of the entertainment and media industry are technology distributors, suppliers, and companies selling raw materials. Disney has different supply contracts with international corporations and local companies. Walt Disney is a huge player in the industry. This means that suppliers always maintain functional relationships with the industry. The suppliers have a moderate level of bargaining power. The main focus of the supplier is maintaining continued connections with the industry instead of negotiating.
The threat of Substitute Product
It is very hard for any other company to replicate Walt Disney because the company has the ability to understand the needs of the consumers and provide them with high-quality products. Walt Disney has used move and cartoon characters to enhance its competitive advantage.
Competitive Rivalry
Disney faces stiff competition from other companies in the entertainment and media industry. Although Disney had been able to attain a huge market share, the company has faced stiff competition from companies like CBS and the 21st Century Fox. Therefore Walt Disney faces intense competition from other companies in the industry.
Stakeholder Instrumental Theory
This is a theory that suggests that businesses are managed and operated in the name of all the stakeholders tend to maximize the profits of the shareholders. Stakeholders affect the achievement of the goals and objectives of an organization. The theory also suggests that stakeholders are supposed to be treated as ends and not the means (Harrison, Felps & Jones, 2019). Over the years, the instrumental theory has contributed to the improvement of management by giving conceptual ground for the merging of explorations of ethics. Walt Disney is a company that has been experiencing stiff competition from different companies in the entertainment industry.
Moreover, instrumental approaches increase efficiency in a business, improves performance, and enable an organization to attain higher profits. Instrumental approaches have increased the performance of Disney. Since Disney has been experiencing intense competition from companies like Netflix and CBC, the company should utilize its shareholders by maintaining effective communication in the company. A close relationship with the company shareholders will make Walt Disney remain competitive in the entertainment industry.
Think Fast, Talk Smart - Communication Techniques
Communication is very important when it comes to the success and life of a business. The main communication objective of Walt Disney is promoting goodwill and positive activities performed by different business units and the corporate unit. Walt Disney has excellent communication with all the investors, stakeholders, vendors, consumers, and cast members. Walt Disney also uses the Internet, newsletters, annual reports, and PR to communicate effectively with all the employees and other stakeholders. In the company, every business unit has its business and communication objectives. Some of the communication objectives of Walt Disney include building customer loyalty and brand value, utilizing the financial gains of the company, creating consumer awareness, and creating transparent communication regardless of the facts of the company. Since Walt Disney is experiencing stiff competition from companies like CBS and 21st Century Fox, the company needs to improve its competitiveness. Disney has not used social media to advertise its products to consumers.
For Disney to improve communication, the company should create loyalty programs for the Playdom. These programs should have a bonus system for regular customers. The company should also continue creating and marketing successful video games. Walt Disney should also use Facebook, YouTube, Twitter, and interactive webisodes, which are available at Disney online.
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