External Analysis Of Disney Environment Analysis

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External Analysis
Globalization is forcing all companies, large and small, to focus on a larger competitive landscape. For many companies hypercompetition arises and they are left with stunted growth while competing with other businesses across the globe. Fortunately, Disney has constructed one of the world’s most recognizable and beloved brands in the entire world. To understand the external environment in which Disney competes, we must first discern which market we wish to analyze. Disney owns a plethora of companies across an extensive list of industries including publishing, game production, retail, theme parks, and software. By far the two largest segments of Disney’s business are its parks/resorts and media networks; those will be
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It is not seen as an amusement park with thrill rides, it is seen as a completely different world in the eyes of the consumer. If a new business spent the capital to create a theme park, it still has to build a brand to compete with a global media giant with more than 50 years of experience.
To start a new media network, capital would be the least of your worries. Once you have bought the infrastructure including satellites, software, etc… a network still needs to produce content and generate revenue. Since it is unlike Disney and doesn’t own many of the factors of production such as production equipment. Not to mention all of the other media networks competing for market share.
Threat of Substitutes (High)
Disney has survived many competitors coming into the space by leveraging its powerful brand and experience. This does not indicate they can stop trying to be relevant. Video games and the rise of virtual reality are becoming huge threats to the theme parks. Why pay a premium for a one time admission when you can buy a virtual reality headset and play basketball with Lebron James. Disney has slowly adapted but must act quicker in the future on new technologies to stay relevant.
Media Networks face the same substitutes too. Subscription media such as Hulu and Netflix have toppled many networks already. With the rise of these new giants creating their own movies, video games, and other substitutes, Disney must work harder than ever

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