• NBC Universal
• Times Warner
Competitive Profile Matrix (CPM)
Before designing any strategy, it is necessary to see the strategies and performance of our competitors. We evaluate the competitive position of our competitors and then make the strategies for the future. So, this is the competitive profile matrix which will show the position of our competitors with respect to us like News and Time Warner.
Corporations Walt Disney Time Warner News
Critical success factors Weight Rating Score Rating Score Rating Score
Advertising
0.4 2 0.20 4 0.8 3 0.6
Product Quality 0.3 3 0.10 3 0.3 4 0.4
Price Competitiveness 0.1 2 0.05 3 0.45 2 0.1 Management 0.3 3 0.1 4 0.4 3 0.3
Financial Position 0.4 4 0.10 3 0.3 4 0.4
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• Entertainment industry is subject to various legislations which a pass at reasonable rapidity.
• The formal policies of USA are not based on objective analysis and judgment.
• Technologies advancement shift is quite significant resulting in impact on entertainment industry.
• Lasting economic recession leading to slow growth rate
• High unemployment rate
• Park and Resorts Divisions’ success is unpredictable because of exchange rate fluctuations; travel industry trends; amount of available leisure time; oil and transportation prices; and weather patterns and seasonality.
• Changes in technology leads customers to stream online instead of buying DVD.
• Online streaming makes Disney defenseless to piracy and violation of its intellectual property.
• Retail distribution business are influenced by seasonal consumer purchasing behavior and by the timing and performance of animated theatrical release
• Increase in labor cost which will have a noticed impact in Walt-Disney expenses due to their large amount of employee.
Internal audit:
Strengths:
• Company has good relationship with the suppliers.
• Company is also maintaining healthy relationship with collective bargaining agent (CBR).
• Disney is one of the most recognizable entertainment company in the world
• They have strong advertising
• Wide and unique portfolio of the company
• Innovative entertainment business
• Strong customer
Managers generally consider the rivalry among competitors as a major source for deriving strategy. As explained by the Michael Porter it is a narrow view of competition. A set of other parameters should be evaluated, mentioned in article as five competitive forces, along with industry
By conducting a value chain analysis for Walt Disney Company, I will be able to accurately show the “parts of its operations that create value, and those that don’t” (Hitt, Ireland, and Hoskisson, 87). The value chain is segmented into two categories: support functions and value chain activities. Support functions include finance, human resources, and management information systems which “support the work being done to produce, sell, distribute, and service the products [Walt Disney] is creating” (Hitt, Ireland, and Hoskisson, 87). Value chain activities include supply chain management, operations, distribution, marketing, and follow-up services, which Walt Disney
This article was really interesting as it discussed a matrix developed for creating strategies by a professor at Harvard. Michael Porter the creator, discussed the notion of how powerful this tool is because companies or organizations look at competition too narrowly. The five competitive forces include:
One of these media giants is the Walt Disney Company (Disney). Its dramatic growth from a small company to become an oligopolist in the media industry offers an interesting
The anticipation of heightened demand dynamically affects admission price for theme parks. Walt Disney World and Disneyland recently introduced variable pricing in 2016 so that park tickets will cost more during holidays and peak period weekends. This only applies to one-day tickets, and not multi-day packages. Disney’s major competitor, Comcast’s Universal Studios, has also adopted demand-based pricing. One difference though, is that their system provides incentives for visiting on off-peak days, and/or booking tickets online in advance. Guests can get $5 to $20 off the walk-up price, with the bigger discounts saved for midweek, low-demand periods. A variety of other discounts, packages, and promotions are available to guests that are all designed to bring down the per-day admissions cost for visitors, while simultaneously ensuring a longer stay for guests. A longer stay is a win-win situation because it means more money spent overall at theme parks, restaurants, hotels, and gift shops.
To better understand a firm and its placement of its strategies, we must conduct an analysis of factors that might affect its selection of strategies.
Firstly, the acquisition would cause Disney’s market power to rise due to the increase of its resources and capabilities to compete in the industry and also a greater share in the market. This is of great importance due to the intense competitiveness in the industry that is dominated by only a few key players. Any increase in
1. Think about the basis of competition: competitive positioning may be based on (a) attributes or benefit, (b) use or application, (c) product or brand user, (d) product or service class, (e) competitors, and (f) price and quality. 2. Write its positioning statement
Competing amusement parks has upgraded their attractions to attract more consumers and Disney is has recently strategizing this approach to a more concentrated perspective. This can ultimately lower their revenues until the plan is complete.
Companies often use a (CPM) – Competitive Profile Matrix to better understand their external environment as well as their competition within the industry they operate. The matrix identifies a company’s key competitors and draws a comparison using the industry’s critical success factors. The analysis also reveals a company’s strengths and weaknesses against its competition, making them aware of problematic areas needing improvement and also areas that are doing well and need to be protected (See Appendix F).
For my final paper I chose to discuss The Walt Disney Company. Since the Company is so large and made up of four primary business segments, I decided to focus on one particular segment: Parks and Resorts. This segment is composed of the theme parks, cruise-line, and vacation club resorts.
There are many ways to dissect an organization's performance as well as their opportunities. Since one organization can operate in a vacuum, they are subject to many external factors. Many organizations constantly monitor the competitive landscape however these are not the only external factors that should be considered. For example, if an organization gains market share against another organization, this might not be as important as an impending recession that is about to emerge or a new set of regulations that will affect the entire industry. There is much more to examine an organization that looking at the competitive landscape.
To remain competitive a company must consider who their biggest competitors are while considering its own size and position in the industry. The company should develop a strategic advantage over their competitors’
1) What is the Disney Difference and how will it affect the company’s corporate, competitive and functional strategies?
The Competitive Profile Matrix (CPM) is a tool that compares the firm and its rivals and reveals their relative strengths and weaknesses (Competitive Profile Matrix, 2013, October 29). These factors are influenced by external and internal challenges. The illustrated CPM below compares Domino’s Pizza with two of its top competitors, Pizza Hut and Papa John’s. The results of the CPM give Domino’s Pizza a 3.3, which is above average in its respective industry. The firm also has high market share. There is an opportunity to improve areas of product expansion and effective advertising. A strong social media presence will also help increase brand loyalty and give the firm the competitive advantage.