THE NATIONAL INSTITUTE OF ENGINEERING, MYSURU
(An Autonomous Institute under VTU, Belagavi)
Bachelor of Engineering
Computer Science and Engineering
ENGINEERING MANAGEMENT ASSIGNMENT
Submitted by
Ritesh Bagati - 4NI20CS078
To The Professor
Dr. Yuvaraju B N
DEPARTMENT OF COMPUTER SCIENCE AND ENGINEERING
THE NATIONAL INSTITUTE OF ENGINEERING
Mysuru - 570 008
Table Of Contents:
Topic Page no.
About Disney 3
Quick Stats About 4
Walt Disney
Products and Competitors 5
S.W.O.T. Analysis 6
Conclusion 11
Page | 2
About Walt Disney:
The Disney Brothers Cartoon Studio was formed on October 16, 1923, by brothers
Walt Disney and Roy O. Disney. It started with the release of its first animated short-
lived series called Alice Comedies. In 1929, the company launched Steamboat
Willie, where the most famous mythical character Mickey Mouse was first introduced
to the world. Before extending into live-action film production, television, and theme
parks, these endeavours established the company as a leader in the American
animation business.
The company is most famous for the legendary cartoon characters they created,
especially by its founding storyteller, Walt Disney. Mickey Mouse is synonymous with
the company and even considered their mascot. He’s a children’s favourite and still
continues to be one of the entertainment sector’s more recognisable characters.
The Disney Company also operated under the names The Disney Studio and then
Disney Productions. Currently, it expanded its existing operations and also started
divisions focused upon Over The Top (OTT) Web series, theatre, radio, music &
publishing.
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QUICK STATS ABOUT WALT DISNEY
CHAIRMAN Walt Disney, Roy O. Disney
Year Founded October 16, 1923
Origin Burbank, California, U.S.A.
No. of Employees 223,000 (2019)
Company Type Public
Market Cap $292.62 billion (2021)
Annual Revenue $67.42 billion (2021)
Net Profit $1.99 billion (2021)
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Products of Walt Disney:
Since 1926, Disney has been entertaining the world is multiple mediums and
formats, such as:
• Amusement parks
• Film, Music and Video games
• Broadcasting and publishing
• Streaming Services
Competitors of Walt Disney:
Walt Disney has its hands in multiple industries on a global stage, it faces
competition from many sides such as:
• Fox Entertainment
• Universal Studios
• Netflix
• Amazon Prime
Page | 5
SWOT Analysis of Walt Disney:
Page | 6
Strengths of Walt Disney:
The Walt Disney Company’s internal strategic factors are as follows.
• Reliability: The company is related to the simplest suppliers who provide
high-quality raw materials. It also keeps quality in mind while buying its raw
materials.
• Large Cash Flow: Walt Disney has a strong cash flow mechanism in place
that allows the company to invest in high-quality, high-budget initiatives. The
company’s financial strength stems from its diverse business portfolio. The
company made USD 69.57 billion in revenue in 2019, a significant rise from
USD 59.43 billion the previous year in 2018.
• Proficient Team: Walt Disney has a number of the foremost creative teams
that contain story scriptwriters, artists, and graphic designers. The qualified
teams are experienced in all professionals with extensive years of experience
in the mass media industry.
• High Brand Value: The company has a strong brand reputation, and its
name and logo are easily recognizable. The brand name became powerful
after the acquisition of other reputed companies like 21st Century Fox. As of
2019, Walt Disney was found to be the 7th most valuable brand, with a brand
value of USD 61.3 billion. This indicates that every product of Disney is highly
popular among the customers. Furthermore, a strong brand image aids the
company in gaining a competitive advantage through differentiation.
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Weaknesses of Walt Disney:
Walt Disney, despite its many strengths, also suffers from many open fronts such as:
• Sky-High Attrition Rate: The company spends an enormous amount on
training. For a firm like Disney, this can be a serious flaw. It should also be
noted that the streaming services of Disney under the direct-to-consumer
segment, have performed poorly. Regardless of the growing popularity of
subscription-based content streaming.
• Poor Financial Planning: Walt Disney is suffering because of its poor
financial planning. The corporation is said to be losing more than $1 billion,
according to reports. Studio Entertainment and Direct to Consumer and
International, on the other hand, only brought in USD 11.13 billion and USD
9.35 billion, respectively. This means that the company’s studio
entertainment, direct to consumer, and foreign segments are
underperforming.
• Vulnerable To Competitors: The company does not engage in proper
marketing and promotional activities and this can be a significant weakness of
a company that needs to survive in a highly competitive market.
• Insufficient Product Demand Scaling: The company spends a lot on its
merchandise and other products and to overcome this the company needs to
plan its manufacturing unit based on the demand obtained from market
research.
• Dependent: The primary weakness of Walt Disney is its dependence on the
revenue generated from parks and resorts and media networks. As of 2019,
Media Networks, Parks and Resorts brought in USD 24.83 billion and USD
26.23 billion, respectively.
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Opportunities for Walt Disney:
Like Weakness, to find opportunities organizations must have to identify and analyse
prevailing opportunities in the market to be able to proactively exploit those
opportunities. Such strategies give a company a competitive advantage while also
allowing it to achieve its long-term growth goals.
• Gear Up for Marketing: The company is financially stable and well-equipped,
hence the firm can improve its marketing techniques, which will support its
growth. Therefore, the company has the opportunity to diversify its genre of
entertainment to attract a much wider range of demography. while shedding
its “kids” only image.
• Core Competencies: Walt Disney can bring in new technologies to the
market using innovation which attracts everyone, and this can be a trump card
for the company. Since the firm has financial stability, the company can use it
to invest in the cloud gaming sector as its growing popularity can be
leveraged by the company by developing its cloud gaming portal to compete
with the likes of Google Stadia and PlayStation Now.
• Big Names Are Worth It: Since Walt Disney is a recognized brand, it can be
a perfect branding source that any business can use for its promotion.
Maintaining a company’s reputation online has become a crucial aspect of
today’s digital marketing strategies.
• Online Streaming Service: Walt Disney has a strong team of artists,
scriptwriters. Hence, the firm can work on its online streaming service, namely
Disney+Hotstar, which is an excellent opportunity for the company to
challenge other services like Amazon and Netflix.
Page | 9
Threats to Walt Disney:
Threats are external or outside factors that negatively impact business & outside the
control of the business, that can come in many forms — supply chain problems,
financial downturns, stringent government regulations or shifts in market
requirements, etc. These are the threats to Disney’s business hegemony:
• High Expense Toll: Walt Disney has always spent large amounts on its
employee development, workforce, and training. The company has a problem
with its core competency and hence fails to use its resources properly. The
economic bubble collapse can lead to a fall in price, causing severe effects on
investment & it is a significant threat to the company.
• Isolation in America: The company only has play stores in developed
countries. The firm should not underestimate the buying capacity of
developing countries, especially Asian countries.
• Better Products & Technology: The main threat to the company is its non-
specificity as it is a jack of all trades and master of none. Walt Disney has a
wide range of products which makes it difficult for the firm to work upon. Also,
the organization needs to bring in new products and technologies to retain its
position in the competitive market.
• Dependence on Parks in COVID-19 Pandemic: Walt Disney earns most of
its revenue from its parks & Resorts but because of this pandemic revenue is
drastically reduced. Moreover, the company was forced to lay off several
employees from its parks due to a lack of revenue.
Page | 10
Conclusion:
In conclusion, The Walt Disney Company can plan its expansion only by working on
its threats. The firm has some weaknesses, but planning can help the company
prevent its weakness from impacting its growth. It is unlikely that Walt Disney will
vanish anytime soon because it is in high demand for its products and especially its
animated movies. It has enough cash flow & has acquired enough companies to
sustain the company for the years to come.
Even the best brands can suffer at the hands of increasing competition in the market.
In the face of rising competition, impactful marketing becomes a necessity for the
company. Hence, gaining a professional understanding of digital marketing is
essential if you wish to work in highly competitive industries such as entertainment.
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