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Summary
For competitive advantage, the Walt Disney Company employs a generic differentiation approach that capitalizes on the uniqueness of products available in the media, entertainment, and amusement park industries. According to Michael E. Porters concept, a generic competitive strategy enables a company to advance and maintain its market competitiveness. Disneys aggressive approach focuses on differentiating its services and goods from those of its competitors while adhering to global market trends. Disneys advancement through innovation and creativity allows the company to compete with other businesses. The entertainment sector deals with strategic objectives and competitive advantages (Lillestol et al., 2015).
Porters Five Forces in Walt Disney Company
Competitive Rivalry or Competition against Disney
This component of Porters Five Forces analysis approach assesses the external variables that keep competitive competition in the industry environment at a high level. The Walt Disney Companys business study case examines how companies in the entertainment, theme park and mass media industries interact (Aylor, 2016). This external examination also considers the factors impacting business development in various worldwide sectors. For example, aggressive mass media marketing methods are taken into account in the companys strategic planning and management.
Bargaining Power of the Walt Disney Companys Customers
Porters Five Forces analysis methodology considers customers bargaining power when determining corporate tactics such as pricing strategies. The external elements that influence customers passion in Disneys situation include picking between firms and items in the industrial environment (Aylor, 2016). For example, greater ease of switching brands in a global corporation corresponds to greater customer power in influencing management policies.
Bargaining Power of Disneys Supplier
This component of Porters Five Forces analytical paradigm focuses on suppliers influence on enterprises and their external business environment. For example, the stability of suppliers influences the availability of materials for The Walt Disney Companys worldwide operations (Aylor, 2016). To maintain an effective supply chain and consistent processes, the organization must handle suppliers influence in the industry environment.
The Threat of Substitutes or Substitution
According to Porters Five Forces research paradigm, substitution puts pressure on enterprises in terms of pricing and revenues, market share, and other important considerations. Potential competitors constantly pressure Disneys global operations (Aylor, 2016).
The threat of New Entrants or New Entry against Disney
Porters Five Forces analytical methodology identifies the threat of new entry as a competitive factor in the industrial environment. The Walt Disney Companys strategic management must examine potential new entrants and their implications on the international business climate in this situation (Aylor, 2016).
References
Aylor, B.(2016). Analyzing Strategy: A Look at Strategy inside of the Walt Disney Company
Lillestol, T., Timothy, D. J., & Goodman, R. (2015). Competitive strategies in the US theme park industry: A popular media perspective. International Journal of Culture, Tourism and Hospitality Research.
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