The Tools of Strategic Analysis

Competitive advantage exists when a firm has strategy, product or an attribute that makes the firm capable of delivering similar benefit to that of competitors at a cheaper cost. Having competitive advantage is not enough the company should be capable of sustaining that particular competitive advantage for a longer period of time.

Jobber and Chadwick (2013) discussed that the main two sources of gaining an advantage over competitors are by offering different benefits of the product or deliver it at lower cost than the competition.

The diagnostic model I have chosen to discuss to analyze Disney and several of the companies acquired throughout the years such as Pixar, Marvel, and LucasFilm’s LTD for this assignment is the 7-S Framework model. I will also briefly discuss the many changes that Disney has implemented to improve the customer viewing as well as interactive experiences at their many new, current theme parks, and vacation destinations throughout the world. The 7-S model developed by McKinsey and Company consultants Robert Waterman Jr., Tom Peters, and Julien Phillips (Palmer, Dunford, Akin, 2009). The 7-S model may be used

•Profitable: one of the key criterions for selecting the above competitive advantages is that the company can introduce them profitably.

“There are 2 types of Competitive Advantage. Firms with lower relative cost than rivals have a Cost Advantage. Firms that are able to charge higher prices (have a higher WTP) than their competitors have a Differentiation Advantage. Firms that have both, low cost and high WTP, have Dual Advantage”( Proenca,Jose).

An example of a competitive advantage: “McDonalds’ competitive advantage is its large number of restaurants, more than double its competitors, making it more convenient for customers than any other fast food restaurant in the world.”

The more prospective the competitive advantage the more it becomes hard for it's advantage to be neutralized .

1. What is competitive advantage, and how does it relate to a company’s business model?

Competitive advantage(CA) is an advantage competitors gain by providing or offering customers or consumers greater value for their money through product and service differentiation or through lower prices. Maintaining competitive advantage is crucial to many businesses or organizations' success in order to survive in the market. Competitive advantage is characterized by superior performance which could be an attribute to outperform the competitors whether current or potential; or gaining a higher market share in a particular industry thereby ensuring market leadership; or ultimately, maximization of profit.(JOBBER 2010)

Walt Disney once said, “All our dreams can come true, if we have the courage to pursue them.” Walt Disney was one of the most successful entrepreneurs of all time, a man who took a dream and pursued it, making a worldwide famous company, Walt Disney World. This paper will look at the history, financial situations, and marketing strategy of Walt Disney World. As Walt would say, “Sit back and enjoy!”

Walt Disney transformed a small private company into a blooming public company surrounded by success. The case study presents his strategic process of success starting from the ground-potential he encompassed as a young boy. Today, Disney is still a famous company seen throughout everyday life in a wide variety of presentations. Disney is represented through movies, short films, cartoons, television networks, theme parks, hotels, and characters. In accordance to the case study, the most important quote obtained from Disney is “you’re dead if you aim only for kids. Adults are only kids grown up, anyway” (3). Through this quote, Walt set the success for Disney as aimed towards families, creating a fun environment and opportunity for pre-teens and adults to forever enjoy.

Competitive strategy is the moves and methods that the firm has taken and is taking to appeal buyers, improve its market position, and to endure competitive pressures. The strategy is about what a firm’s capability to try to knock off competitors and attain competitive advantage, which can be offensive or defensive. There are three approaches to competitive strategy, which are low-cost leadership strategy where struggling to be the overall low-cost manufacturer in the in industry. Moreover, pursuing to distinguish one’s product offering from competitors (differentiation strategy), and the last one is focus or niche strategy where aiming on thin portion of the market rather than the whole market (Porter, 1998).

Competitive advantage is explained by Mahoney and Pandian (1992) as the function of industry analysis, organizational governance and the firm’s effects in the form of resource advantages and strategies. In order for a firm to be competitive it must adapt to the volatile business environment and through strategic management decisions establish a competitive advantage that will ultimately produce superior performance relative to its competitors (Akimova 2000).

In order to achieve competitive advantage, a firm must perform one or more value-creating activity that is more superior compared to other competitors. Superior value is created through lower costs or superior benefits to the buyers.

exists when the firm is able to deliver the same benefits as competitors but at a