Disney Case Study

2488 Words Apr 7th, 2012 10 Pages
Competitive Position

Disney is considered to be one of the pioneers in the entertainment industry, and for almost one century, the company have managed to grow successfully and to respond tremendously well to global changes such as the rapid technological evolution and the constant variations in customer trends. The reason they have accomplished that is because Disney shaped in people’s mind the assumption of permanent, combined with an outstanding delivery of their products and services, which in simple word means: ‘we are always going to be here’. This is described by Miles and Snow (2003) as the ‘Defender’ strategic approach, where large corporations fights to preserve and maintain their top position in the market.

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Down to the fact that Disney’s major competitors in the Media Network/Broadcasting are also big conglomerates, this creates a tough competitive environment, because when consumers have a range of option to choose it from, automatically the power of buyer increases (Boddy, 2011), and the only way companies managed to compete is via dropping the price and attempt to persuade consumers to switch from one company to another. This conflict is noticeable when looking into the average number of audience between the most popular network televisions, where Disney is in the 3rd rank with 5.4million viewers per night (see page 11, 2nd paragraph).

Regarding the studio entertainment group, again, Disney stands in a very competitive environment controlled by seasonality, predilections and taste of consumers. This indicates once more the high power of buyers, and additionally, the threat of substitute products or services may occur e.g. because of the decline on consumer spending, people may choose to watch a movie on the free channel rather than by a film on a Pay-per-view channel or to go out for dinner instead of going to the movies.

Overlooking Parks & Resorts, mainly in the parks segment, Walt Disney is the number one leader in the industry and only competes with two major rivals: Six Flags and Ocean Park. Nevertheless, despite the fact that Disney have a strong brand image and

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