The Walt Disney Company is one of the world’s leading companies in entertainment. Roy and Walt Disney first started this company in 1923 at an office in Los Angeles, and began as a small production studio. Today, the company invest in a variety of business sectors like media networks, consumer products, production studios, theme parks, and resorts. The major entertainment brands that Disney owns are ABC, ESPN, Marvel, Pixar, and Lucas Film. The Walt Disney Company headquarters is located in Burbank, California, and you can find more information about the company at thewaltdisneycompany.com. I choose this company because it is one that I am very familiar with, it has always been my dream to work for Disney one day. Due to this I have familiarized myself with a lot of the company’s policies and business operations, such as the company’s approach when it comes to sustainability. However, throughout the research paper I have learned more Disney’s competitive dimensions that make them the powerhouse they are today.
According to Michael E. Porter’s Five Force Model there are certain areas that determine a company’s attractiveness over its competitors. This paper will analyze Disney’s competitive dimensions using the Five Force Model. Disney is a large company with many loyal consumers to, so the company is rarely threatened by new companies in their market. Small companies do not have the capital to support a large corporation or create the type of brand loyalty Disney maintains. However, Disney faces high competition amongst corporations that already exist, such as Universal and Fox Studios. Disney is known for its distinct image, so while they face high competition, there is a low chance that any company is a substitute for the brand. Disney is a leading company, so its bargaining power of suppliers is moderate and their bargaining power among its buyers is weak. This is because Disney is such a popular brand that creates a unique experience for its consumers, so their customers are willing to pay almost any price for the brand. Suppliers such as Hulu, Netflix, Philips, and Imax have a moderate influence over the company’s operations because their brand name and influence. Due to this it is difficult for Disney to change suppliers, but they still maintain a great deal of power in their supply chain. This is especially made clear because Disney demands that their vendors maintain responsible supply chain management as part of their sustainability efforts.
One of the major parts of Disney’s CSR is their Environmental Stewardship program, which is the steps the company is taking to be more sustainable. On the Walt Disney website’s environmental impact page, it states, “Our commitment to environmental stewardship focuses on using resources wisely and protecting the planet as we operate and grow our business operations.” Disney’s current sustainable goals is to achieve a reduction in emissions by 50% and a decrease in waste by 60%, before 2020. The measures Disney has taken to reduce their carbon footprint are their Disney Cruise Line has eliminated more than 6,400 tons of glass, plastic, and metal from their ships, they have installed energy efficient fixtures throughout their parks, and the Disney’s merchandise bags are made of low-density polyethylene that emits less than 60% of carbon dioxide. Disney has done so much for the environment, and that is why they were awarded 3rd on Forbes’s “The World’s 25 Most Reputable Companies” list.
Disney is one of the companies that have a large target audience that is loyal to their company. This is due partially because they maintain a competitive advantage over their competitors, while also partaking in sustainable efforts which attract more consumers. If I were to have an interview with Disney these are some of the questions I would ask:
- How much capital does Disney invest to remain as a leading entertainment company?
- How does Disney use its different business operations to support each other?
- What has been the most successful venture in Disney’s Environmental Stewardship program?