SWOT Analysis: Disney

In this blog, we will focus on Chapter 2 of Strategic Management: Creating Competitive Advantages, more specifically, SWOT analysis. While many topics were brought up throughout the chapter, like Porter’s five forces model, the SWOT analysis embodies all internal and external environmental behaviors. I decided to focus on Disney this semester because it sparks joy for almost all consumers. Disney truly tries to live up to its motto, “the happiest place on earth.”

The idea of a SWOT analysis identifies the company’s strengths, weaknesses, opportunities, and threats. By conducting a SWOT analysis, we will better understand the company’s current position and potential growth. Disney has many strengths that have made them a household name. One of their biggest strengths is their brand recognition. Disney has been a household name for over a century, built on timeless stories, beloved characters, and unforgettable experiences. They can also deliver high-quality content and products. Whether it is storytelling and character development or the one-of-a-kind experience offered by theme parks, Disney has been able to go above and beyond in terms of quality for the consumer. While Disney has many more strengths, I want to shift to its weaknesses. There is a potential weakness for overexposure since Disney depends on economic conditions and trends. In this generation, trends don’t stay around for very long, so it is important for Disney to determine where they fit into each new trend. Another weakness for Disney is its dependency on franchises, such as Star Wars, which can leave the company vulnerable to changing market preferences.

Disney has a plethora of opportunities to benefit from. In this day and age, there is always the opportunity for technology investment. Disney could tap into the virtual reality systems that are becoming increasingly popular. They also have the opportunity to invest in original content. As streaming has become more popular, Disney would benefit from creating more content rather than relying on their franchises. While they have some original content, they are of lower quality than the franchise content. Lastly, we will look at some of the company’s threats. For example, stiff competition will always exist, such as universal studios with theme parks, franchises, streaming, etc. With the rise of online content, there is even more competition with creators and influencers. Along with competition, there is also the threat of talent retention. Diverse talent is a large part of Disney’s content when developing an experience with the audience. As social values have shifted, it is important for Disney to recognize the gap and allow opportunities for even further diversity in their talent. In conclusion, Disney needs to build on its strengths, improve its weaknesses, take advantage of economic and environmental opportunities, and reduce company threats.