External Factor Analysis (EFAS)

  

Using the information from DISNEY SWOT, create an external factor analysis (EFAS) table for DISNEY. Use Microsoft Word, or a similar program, to create your table. It should have five columns. The first column heading should be titled External Factors, the second column should be titled Weight, the third column should be titled Rating, the fourth column should be titled Weighted Score, and the fifth column should be titled Comments. 

1. In the External Factors      column, list at least six opportunities in DISNEY. Underneath the      opportunities, list at least six threats in DISNEY.
2. In the Weight column, assign      an importance factor to each of these issues. It is important to note that      whenever working with weighted averages, the weight column should always      total 1.0, or 100%, regardless of how many factors are included in the      EFAS analysis. It is up to the analyst to decide how much weight each      individual external factor is assigned based on the probable impact on a      particular company’s current strategic position. The higher the weight,      the more important the factor to the current and future success of the      company. An important factor may have a weight of 0.5 (50%), while a less      important factor may have a weight of .05 (5%). When all is finished,      however, all factor weights should total 1.0, or 100%. You may not be      privy to the exact information for this company, so in some cases you will      need to use your best judgment. (You will justify your weighting in column      five.)
3. In the Rating column, assign      a rating factor from 5.0-1.0 (5.0 is outstanding; 1.0 is poor). These      ratings are based on the company’s response to that particular factor. It      is your judgment call on how the company is currently dealing with each      specific factor. Once again, you may need to make an estimate in this area      if you are not privy to all of the information. (You will justify your      weighting in column five.)
4. In the Weighted Score column,      multiply the weight from column 2 by the rating in column 3 to get the      factor’s weighted score.
5. In the Comments column,      explain why a particular factor was selected and how its weight and rating      were estimated.
6. At the bottom of column 4,      add the weighted scores for the external factors. Is the company doing      better or worse than others in the same industry? Complete this answer      underneath your table.

Format your assignment using APA Style. Use your own words, and include citations and references as needed to avoid plagiarism.

2

Disney SWOT Analysis

Student Name

Institution affiliations

Professor’s Name

Due Date

Disney SWOT Analysis

Introduction

SWOT analysis refers to the strategic management method that allows organizations to identify their weaknesses, strengths, threats, and opportunities (Teoli et al., 2019). The SWOT analysis technique is used in the preliminary stages of the decision-making process and can also be used for evaluating the strategic position of an organization. The technique identifies the external and internal factors that are unfavorable and favorable to the achievement of objectives. The weaknesses and strengths are considered internal factors, while the threats and opportunities are considered external factors. A strong relationship between opportunities and strengths can suggest better conditions in an organization allowing aggressive strategy. Conversely, strong relations between the threats and weaknesses can be a potential warning and a need for defensive strategy.

Introduction to Disney

The Walt Disney Company is an entertainment and multinational mass media organization in California. The organization operates ABC Broadcast and cable television networks like ESPN, Disney Channel, National Geographic, and FOX. Also, the organization offers other products, including publications, merchandise, theatres, Disney parks, theme parks, and music. The company is among the best organizations in the mass media, entertainment, and amusement park firms. The organization has attained this position through its corporate strengths that addresses threats, opportunities, and weaknesses.

Strengths

In the Model of SWOT analysis, the strengths entail the internal factors that propel the growth of a business. In Disney, the internal factors support the strategic strategies to enhance business development amid stive competition in the international mass media and entertainment industries. The company’s strengths include string and popular brand, growing portfolio of its brand, and cooperative growth within its corporate segments. The organization has a strong and popular brand that is among the ones that are easily recognized internationally. This strength allows the company to present itself as a family-oriented and decent business suitable for its consumers. Through this strength, the business can manage consumer expectations based on the brand reputation.

Additionally, the company has a growing portfolio of its popular products. The organization’s movies and the associated merchandise and services of amusement parks increase gradually throughout time. Consequently, this leads to revenue growth while enhancing the organization’s popularity. Furthermore, the company facilitates beneficial cooperation within its business segments. Through this cooperation, the company can obtain a competitive advantage that supports its growth in the long run.

Weaknesses

This aspect examines the weaknesses or internal factors that are barriers to growth and development. The weaknesses of Disney company include limited higher attrition rates, vulnerability to competitors, burdening acquisition, racism, and limited innovation.

Limited innovation. This weakness is based on the company’s business strategies. The company innovates through product improvement; however, its operations have limited rapid innovation associated with advanced technologies. For example, the company’s theme parks have a reactive instead of an aggressive technique for using new technologies.

Burdening acquisition. According to Arnold (2019), some acquisitions are good for the growth of a business, while others can cause financial turmoil in the long run. The profitability of Disney has been impacted by its recent acquisition, which has led to a financial burden.

Racism. This is a major weakness as there have been protests against racism. One of the top executives at the company had a long history of engaging in racially inappropriate and insensitive behavior and racist comments.

Vulnerable to competitors. Disney is vulnerable to competitors due to a lack of promotion and marketing. The company uses ads only when introducing new movies and stresses visual marketing through cross-promotion.

Opportunities

The company’s opportunities involve the factors that can potentially generate high revenues in the international entertainment, amusement park, and mass media operations. The opportunities include marketing gear up, core competencies, big name, online streaming services, international theme parks, strategic acquisitions, technological innovation, business growth in the developing markets, and corporate growth in many industries. Disney company has an opportunity to incorporate new technologies into its operations to improve its international business. Implementing digital technology can improve its products’ efficiency and quality in resorts and amusement parks. Additionally, the company has an opportunity to grow its business by diversifying. In relation, growth in developing markets allows the company to expand its operations. Disney has an opportunity in marketing to help it change the opportunities it has missed and get new prospects. Also, the company is expertise in mass media, and its skills can allow it to be innovative.

Furthermore, Disney has a big name with a large consumer base which it can use to market and promote the business further. Moreover, the company’s online streaming services can help obtain a competitive edge, increasing its profit margins. The company has made strategic acquisitions which enables it to exploit and expand opportunities in various sectors within the entertainment industry. In the future, the company can make other acquisitions to catalyze growth.

Threats

Threats are factors that can potentially reduce corporate performance (Sarsby, 2016).  In Disney, these factors include technological disruption, competition, piracy, cyber security threats, economic uncertainties, tight regulations, better technology and products, higher expense toll, and isolation in the U.S. Competition remains a significant threat in the company, which is intense in the international entertainment and mass media sectors. Also, technological disruption is another threat that can potentially reduce the organization’s profits. For instance, technological changes experienced in product delivery in the mass media and entertainment markets direct some profits to organizations providing online media networks and channels. Content piracy decreases the organization’s revenues in markets with strong legal protections against piracy.

Moreover, the company spends large amounts of money on its training, employee development, workforce. With high expenses in salary, the company can end up generating lower profits. Also, some of the company’s manufacturers are not in the U.S, making the company gain insufficient profits. Tight regulations in the company eliminate the advantages of monopolistic for Disney company. Cyber security threats have increased in recent years, with hackers turning their attention to its streaming services to gain illegal access to the consumers’ accounts.

References

Arnold, D. (2019). Mergers and acquisitions, local labor market concentration, and worker outcomes. Local Labor Market Concentration and Worker Outcomes (October 27, 2019).

Sarsby, A. (2016). SWOT analysis. Lulu. com.

Teoli, D., Sanvictores, T., & An, J. (2019). SWOT analysis.