Strategic Management

2ND Case Study

Bucol, Jerauld R.

Navarro Mark Gil S.

Crumbana, Christoper Jay

Kalis, Michelle Fatma

08/29/2018
 Walt, after the Studio
History
had won 4 Academy
Awards
Walt Disney 1901-1966

• Walt Disney was born on December 5, 1901 in Chicago

• During the fall of 1918, Walt Disney attempted to enlist for military
service but he got rejected.
• He started a small company called Laugh-O-Grams, which eventually fell
bankrupt.
• With his suitcase, and $20 Walt headed to Hollywood to start anew.
• After making a success of his "Alice Comedies," Walt became a
recognized Hollywood figure.
• Disney took a deep interest in the establishment of California Institute of
the Arts, a college-level professional school of all the creative and
performing arts.
• Walt Disney passed away on December 15, 1966.
• Urban legend maintains his corpse would be
frozen and stored beneath the Pirates of the
Caribbean ride at Disneyland. . .
 General situation
and assumption

“High unemployment, lingering recession,

slow economic growth, and reduced
consumer spending all contributed to a 7
percent drop in revenue and a 46 percent
drop in Walt Disney’s profitability for the
first quarter of 2009.”
 Mission and Vision
Statement

"The mission of The Walt Disney Company is

to be one of the world's leading producers
and providers of entertainment and
information. Using our portfolio of brands to
differentiate our content, services and
consumer products, we seek to develop the
most creative, innovative and profitable
entertainment experiences and related
products in the world."
Competitive Profile Matrix CPM
Disney Time Warner Fox
Critical Success Factors Weights Rating Score Rating Score Rating Score
Advertising 0.13 4 0.52 4 0.52 3 0.39
Company Image 0.14 3 0.42 4 0.56 3 0.42
Global Expansion 0.10 4 0.40 1 0.10 2 0.20
Consumer Loyalty 0.12 4 0.48 4 0.48 3 0.36
Production Capacity 0.10 3 0.30 3 0.30 3 0.30
Market Share 0.11 4 0.44 2 0.22 3 0.33
Price Competitiveness 0.13 3 0.39 2 0.26 4 0.52
Technology 0.09 3 0.27 4 0.36 2 0.18
Management 0.08 3 0.24 3 0.24 3 0.24
Totals 1.00 3.46 3.04 2.94

Interpretation: Based on the matrix above,Disney has done enough on

reacting on the industry's important factor, the company's image, though
time warner has done it better but disney has done excellent on the other
areas like advertising, global expansion,customer loyalty and increasing
Internal Factors Evaluation (IFE)
Strengths
IFE
Weights Ratings Weighted Score

Globally known entertsinment company 0.08 4 0.32

Broad Differentiation Strategy 0.06 3 0.18
Largest worldwide licensor of character-based merchandise 0.07 4 0.28
Portfolio is extremely wide and unique 0.1 4 0.4
Disney owns a veriety of companies and is multiple industries 0.08 4 0.32
Strong customer service 0.04 3 0.12
Media Networks and broadcasting is really strong 0.05 4 0.2
Innovative entertainment business 0.06 3 0.18
Strong Advertising 0.07 3 0.21
Weaknesses 0
Employee turnover is high 0.04 1 0.04
Narrow target market 0.04 2 0.08
Disney is known as a costly trip because of its limited locations and
accessibility 0.07 2 0.14
Entertainment production costs are high 0.05 1 0.05
Very large work load 0.06 2 0.12
Concentrates primarily on the revenue in North America 0.08 2 0.16
Insurance is continuing to rise in parks and resorts 0.05 2 0.1
Totals 1.00 2.9

Interpretation: Based on the matrix above, Disney's major strength is having a portfolio that is extremely wide and unique
which is also the most important factor in the company and Disney has responded to it properly. On the other hand, its
minor weakness is its concentration of revenue in North America since it is the mosrt important factor and Disney has
responded properly to such factor.
 EFE
External Factors Evaluation (EFE) Weights Rating Weighted
Opportunities
Increasing target market 0.05 3 0.15
Availability of parks in US and in intenational countries 0.10 4 0.40
Governments positive attitude toward Disney's organization 0.07 3 0.21
Barriers of entry 0.06 2 0.12
Preference on attractive theme parks 0.09 4 0.36
Growing media network 0.08 4 0.32
Increasing money spending of guests 0.07 4 0.28
Threats 0.00
Service/ Entertainment business competitors 0.04 1 0.04
High Unemployment rate 0.06 2 0.12
Increasing online streaming 0.07 3 0.21
Economic Crisis 0.06 1 0.06
Increasing labor cost 0.06 2 0.12
Unpredictability of Theme parks and resorts 0.09 3 0.27
Seasonal purchasing consumer product retail 0.10 4 0.40
Totals 1.00 3.06

Interpretation: Based on the matrix above, Disney's major opportunity is the availability of parks in US and
in international countries since it is the most important factor and Disney has responded to it properly. On
the other hand, its minor threat is the seasonal purchasing of consumer product retail since it is the most
most important issues and it has responded to it properly.
 S1 Globally known entertsinment company W1 Employee turnover is high

TOWS
S2 Broad Differentiation Strategy W2 Narrow target market
Largest worldwide licensor of character- Disney is known as a costly trip because
S3 based merchandise W3 of its limited locations and accessibility
S4 Portfolio is extremely wide and unique W4 Entertainment production costs are high
Disney owns a veriety of companies and is
S5 multiple industries W5 Very large work load
Concentrates primarily on the revenue in
S6 Strong customer service W6 North America
Media Networks and broadcasting is really Insurance is continuing to rise in parks
S7 strong W7 and resorts
S8 Innovative entertainment business
S9 Strong Advertising
SO WO
(S2, O2): Create a customized targeted (W1, O1): Research and develop a plan for
advertising plan for all their segments emerging markets with low costs
O1 Increasing target market SO1 WO1
(W4, O3): Target those new markets and
(S3, O3): Expand Hong Kong Disney and look into expanding around consumer
Availability of parks in US and in intenational research in one new market products
O2 countries SO2 WO2
(S4, O4): Research and Develop a way to (W2, O4): Research the consumers use
Governments positive attitude toward Disney's tell stories to kids through technology and need of technology
O3 organization SO3 WO3
O4 Barriers of entry
O5 Preference on attractive theme parks
O6 Growing media network
O7 Increasing money spending of guests
ST WT
(S2, T1): Lower their costs and utilize (W4, T1): Digitize content utilize
technology (digital content) technology and lower costs
T1 Service/ Entertainment business competitors ST1 WT1
(S2, T3): Create and document a trade (W1, T2): Put more efforts on high techs
market and an IP protection plan and then and research and develop in that
T2 High Unemployment rate ST2 WT2 segment
(S2, T4): Create marketing strategies
promotions for customers to use during
slow periods at their resorts and theme
parks. (W5, T2):conduct a job fair openings for
T3 Increasing online streaming ST3 WT3 vacant positions
T4 Economic Crisis
T5 Increasing labor cost
T6 Unpredictability of Theme parks and resorts
T7 Seasonal purchasing consumer product retail
Qualitative Evaluation Matrix
ACTIVITIES ADVANTAGES DISADVANTAGES

Intensive (S2, O2): Create a customized targeted

Strategy SO1 advertising plan for all their segments 1 Product Awareness 1 Distribution Expenses
(S3, O3): Expand Hong Kong Disney and Increased Sales and
SO2 research in one new market 2 Earnings 2 Increased Competition
(S4, O4): Research and Develop a way to
SO3 tell stories to kids through technology 3 Marketing Efficiency 3 Low Price Products
(S2, T3): Create and document a trade
ST2 market and an IP protection plan 4 Impulsive Purchase
(S2, T4): Create marketing strategies
promotions for customers to use during
slow periods at their resorts and theme
ST3 parks. 5 High Customer Recognition
(W4, O3): Target those new markets and
look into expanding around consumer
WO2 products
(W2, O4): Research the consumers use
WO3 and need of technology
(W1, T2): Put more efforts on high techs
and then and research and develop in that
WT2 segment
(W5, T2): Conduct a job fair openings
WT3 for vacant positions
Lack of supplier competition that will
Backward (S2, T1): Lower their costs and utilize lead to low efficiency resulting in
Integration ST1 technology (digital content) 1 Increased Control 1 potentially higher costs.
Existing competencies need to be
(W1, O1): Research and develop a plan for sacrificed in order to develop fresh
WO1 emerging markets with low costs 2 Cost Control 2 core competencies
(W4, T1): Digitize content utilize
WT1 technology and lower costs
Quantitative Strategic Planning Matrix INTENSIVE STRATEGY BACKWARD INTEGRATION
Weights Rate W. Score Rate W. Score
S1 Globally known entertsinment company 0.1 4 0.4 4 0.4
S2 Broad Differentiation Strategy 0.05 3 0.15 2 0.1
S3 Largest worldwide licensor of character-based merchandise 0.1 4 0.4 3 0.3
S4 Portfolio is extremely wide and unique 0.06 3 0.18 3 0.18
S5 Disney owns a veriety of companies and is multiple industries 0.08 3 0.24 2 0.16
S6 Strong customer service 0.05 4 0.2 3 0.15
S7 Media Networks and broadcasting is really strong 0.08 4 0.32 4 0.32
S8 Innovative entertainment business 0.06 4 0.24 4 0.24
S9 Strong Advertising 0.08 4 0.32 2 0.16
W1 Employee turnover is high 0.05 2 0.1 3 0.15
W2 Narrow target market 0.05 1 0.05 1 0.05
Disney is known as a costly trip because of its limited locations and
W3 accessibility 0.04 1 0.04 1 0.04
W4 Entertainment production costs are high 0.05 2 0.1 1 0.05
W5 Very large work load 0.03 2 0.06 2 0.06
W6 Concentrates primarily on the revenue in North America 0.07 2 0.14 1 0.07
W7 Insurance is continuing to rise in parks and resorts 0.05 2 0.1 2 0.1
O1 Increasing target market 0.15 3 0.45 2 0.3
O2 Availability of parks in US and in intenational countries 0.07 2 0.14 3 0.21
O3 Governments positive attitude toward Disney's organization 0.05 3 0.15 3 0.15
O4 Barriers of entry 0.08 4 0.32 3 0.24
O5 Preference on attractive theme parks 0.08 4 0.32 2 0.16
O6 Growing media network 0.12 3 0.36 4 0.48
O7 Increasing money spending of guests 0.05 2 0.1 2 0.1
T1 Service/ Entertainment business competitors 0.06 3 0.18 3 0.18
T2 High Unemployment rate 0.05 4 0.2 3 0.15
T3 Increasing online streaming 0.07 4 0.28 2 0.14
T4 Economic Crisis 0.06 4 0.24 2 0.12
T5 Increasing labor cost 0.05 3 0.15 4 0.2
T6 Unpredictability of Theme parks and resorts 0.06 2 0.12 2 0.12
T7 Seasonal purchasing consumer product retail 0.05 3 0.15 2 0.1
TOTAL 2 6.2 5.18
 Proposed Vision
Walt Disney strives to be the world’s most famous
entertainment company by creating an amazing
experience for individual of all ages.

Proposed Mission
Our Mission is to be one of the world’s leading
producer and provider of entertainment and
information, from parks to network media, and
website for all ages. We seek to provide a great
experience for our customers, as well as for our
employees.
I. Product development to attract older target market.
KEY RESULT
AREAS PLAN OF ACTIVITIES PERFORMANCE INDICATORS
1.1 Research and development of new 1.1.1 increased awareness on the
attractions preferred by the older preference of the market
target market 1.1.2 increased knowledge on how to
1 Expanded improve the services offered
Product line or 1.2 Putting up new attractions within 1.2.1 Increased Sales
Service the area of the older target market 1.2.2 Increased Profit
1.2.3 Lesser turnover of older target
market

2.1 Improve quality of service 2.1.1 Increased Sales

2.1.2 Increased customer preference on
the service
2.1.3 increased Profit
2. Increased 2.2 Renovation of old and destroyed 2.2.1 Attracted new and old customers
Customer parks 2.2.2 Lesser incidents
Satisfaction
2.2.3 Increased usage of the park
2.3 Assessment or evaluation of the 2.3.1 Gained Positive Feedbacks from
likes and wants of customers through a customers
survey.
II. Market in the North East area.

KEY RESULT AREAS PLAN OF ACTIVITIES PERFORMANCE INDICATORS

1.1 Branch out to major cities
1 Expanded Market
1.2 Joint venture with local government
Share
1.3 Open a branch in North East areas with
large population
1.1.1 Increased Sales Margin
1.1.2 Increased number of customer availing the
service or product
1.1.3 Increased number of theme parks in the
major cities
1.2.1 Increased regulation awareness
1.2.2 Lesser occurrence of uncertain events like
suits against the company
1.3.1 Increase quantity of sales
1.3.2 Increased Profit
1.3.3 Increased number of new customers

2.1 Building new theme parks in North East 2.1.1 Increased number of theme parks
area
2.2 Conducting an event to attract new 2.2.1 Increased number of children customers
2. Increased customers especially children 2.2.2 Number of attendees
accessibility of theme
parks in North east 2.3 Advertising regarding the opening of new 3.3.1 Increased number of informed customers
area theme parks 3.3.2 Increased knowledge of customers
regarding the product or service
3.3.3 Increased number of feedbacks regarding
the product or service
III. Improve advertising to reach a more mature market
KEY RESULT
AREAS PLAN OF ACTIVITIES PERFORMANCE INDICATORS
3.1 Pricing of product or service 3.1.1 Increased Market Share
suitable with the buying power of the 3.1.2 Increased number of customer
market. availing the product or service
3.1.3 Increased profit
3. Improved 3.2 Introducing product that is suitable 3.2.1 More satisfied customers
Strategic with their preference. 3.2.2 Increased Sales
Advertising 3.2.3 Lesser negative feedbacks regarding
the product or service
3.3 Do a research of the product or 3.3.1 Increased volume of sales
service focusing on products
attractiveness and customer preference

2.1 Put up "suggestion box" in the 2.1.1 Increased Number of feedbacks

website. Online
2.2 Make a page for the customers to 2.2.1 Increased Number of followers
2 Intensive used of
address their issues and comments Online
social media to
regarding the product. 2.2.1 Increased number of comments
interact with
online
customers
2.3 Improve the facilities of the 2.3.1 Addressed customer issues.
company to easily connect and
STATEMENT OF RECOMMENDATION:
Our strategy will focus on intensive integration for the case study of Walt Disney.
We believe that new strategies involving product development, market penetration and
market development will help the company not to stagnate and would give it a greater
leverage of market share in the world. Furthermore it will also help the company to cover
up for its weaknesses especially in having a narrow target market and the high price of
service and product offered to the market . Lastly, it would also alter those threats and be
their opportunity or strength to have a competitive advantage to its competitors like the
unpredictability of theme parks and resorts and service or business competitors.
STRATEGIC DIRECTION:
In order to achieve the implementation of the strategy, Walt Disney must have an
intensive marketing strategy by expanding and increasing the market share and improving
the strategic advertising. Furthermore, they must also enhance its product to compete with
its competitors through renovation od the old or destroyed theme parks or by introducing
new theme parks that are attractive and introducing new innovated products or service by
acquiring new knowledge to create such service or product. Lastly, they must expand its
operation in North East area through building new theme parks in order to increase the
accessibility of the service.

INTENSIVE INTEGRATION
The aim of intensive strategies is to broaden the market share and to increase the
profit by making the existing service and products more available to the intended market.