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The Five Factors Of Competition In The Walt Disney's Industry

Decent Essays
Monica Providence
Bus. 436
Professor Dr. Glenn Metts
May 29th, 2017
Assignment #2
Even though the Walt Disney is a multinational company, is not excluded from competition. In any business or company, competition always post a threat.
The five factors Model by Porter in relation to Disney’s industry are:
• Competition from rival sellers;
• Competition from potential new entrants to the industry;
• Competition from producers of substitute products;
• Suppliers bargainings.
• Customers bargaining powers.
The first force that can be discussed is that of competition from rival sellers. The Disney Company has been able to grow for over a long period of time, in my opinion, they dominate this industry in family entertainment, so in this case they have
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They are leaders in the entertainment market thus making it possible to effectively practice economies of scale in production. For example, according to the case story on ‘The Walt Disney Company: It’s diversification strategy in 2014” it states:
“Walt Disney spent years planning the park and announced the construction to America on Disney land Television show, the park was an instant success, when it was opened in 1955, it recorded revenues of more than $10 million in the first year.”
The requisite capital are very high, therefore, competition from potential from other new company will required a large amount of capital investment.
Because the company is operating in a highly unique and distinguished industry, the bargaining powers of suppliers are very moderate. The company is experiencing many advantages in this area, in that Disney is a very unique company and is of high importance to its many suppliers. Another advantage is the size of the company, being able to order a large number of products from suppliers creates a dependency and foster a relationship in the
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