Sustainability is one of the most important trends in the recent decades. Hence, as a manager it is important to possess up-to-date knowledge and agenda. As a marketing manager, I have an opportunity to contribute to the achievement of sustainability in the world by selecting marketing strategies that endorse sustainable companies.
“The Walt Disney Company” ranks among the leading organizations exercising Corporate Social Responsibility (CSR) across the world (Henthorn, 2019). Through CSR, Walt Disney ensures social, environmental, and economic sustainability. An example of the efforts Walt Disney has implemented in ensuring the sustainability of the environment is that for a period spanning ten years, the Disneyland Resort has tremendously increased the alteration of waste from landfills.
Disney has devoted a significant chunk of its profits toward sustainability efforts. There are several funds that the company directs to different initiatives that aim at ensuring the sustainability of the environment for future generations. Some of these funds consist of Disney Climate Solutions Fund and the Disney Worldwide Conservation Fund. Regarding the former, this fund represents the efforts of the corporations in the hope of reducing the effect of fossil fuels and escalating temperatures in the environment. Disney ensures monitoring of its carbon footprints by charging subsidiary businesses for greenhouse gas emissions. It also uses some of its profits to improve forest management within its markets and across the country. It is important to take a sustainable research, because it enhances brand’s reputation. In addition, contributing to the sustainability creates a positive impact on the environment and preserves nature.
Walt Disney Company might collaborate with eco-friendly cleaning companies to ensure the environmental sustainability of Disneyland amusement parks. As Disneyland can be found across the world, the collaboration with local businesses would be a step towards increasing sustainability. In general, customer satisfaction can be driven by various factors. But mainly, it is the quality of the product or service the company provides as well as the brand image and its correspondence with customer’s values. As such, clients may remain loyal to the brand if it supports their views on rights and wrong. But if it engages in unethical practices, the clients may choose to leave the brand. For example, using paper cups instead of plastic ones or using recyclable straws would not affect client’s experience or satisfaction, but it would preserve the environment and limit pollution.
Research indicates that streaming services are the future of content distribution. This format manages to grasp the very essence of the 21st-century spirit and combines high-tech solutions with the familiar methods of pastime (Fagerjord & Kueng, 2019). Today, there are many services that offer such content, and it may be difficult to decide which one is best. As the analysis indicates, Disney+ is the optimal solution in this regard with the potential above Netflix. This platform is a combination of classics and modernity that creates an unprecedented quality of entertainment (Agnihotri & Bhattacharya, 2022). It draws inspiration from established franchises, such as Marvel, Pixar, and Star Wars, adding a new dimension to the familiar universes (Disney, 2022). Overall, Disney+ offers well-known pictures of its own production, as well as brand-new original content that meets the interests of most viewers, presenting it in the most convenient form that exists today.
References
Agnihotri, A., & Bhattacharya, S. (2022). Disney: Restructuring for success with video streaming service Disney+. SAGE Publications: SAGE Business Cases Originals.
In the present day, Disney+ may be regarded as one of the most successful streaming services that produce and provides large amounts of audio-visual content for almost everyone. Standing apart from its competitors, the platform combines classics and modernity creating an unprecedented quality of entertainment (Agnihotri & Bhattacharya, 2022). Using a four-quadrant approach, Disney+ aims to cover all major audience demographics (Tapp, 2022). However, according to customers’ analysis, its primary segment is White women and men aged 27-41, predominantly without children, will low or middle income, living in urban and suburban areas. They value the balance of the product’s quality and price, prefer affordable entertainment, and choose both classics and the latest trends.
New Market Segment
At the same time, to stay competitive, Disney+ should create and address new segments and subsegments. Thus, through the analysis of the primary segment, competitors’ strategies, and the population’s features, the company identified the most attractive new subsegment with great market potential. It is Black women and men, aged 27-41, predominantly families with two and more children, with middle income, and from urban and suburban areas. They are both committed to traditional values and respect new ideas and social equity at the same time. They are loyal to companies that afford quality products at the best price. However, due to a lack of time and money for cost-inefficient types of entertainment, they choose convenient, fast, high-quality, and affordable entertainment for all family members without leaving their homes to satisfy their basic needs.
Purpose of Marketing Communication
There are multiple reasons why a new subsegment should be addressed by Disney+. First of all, according to the latest reports, Black adults spend more time with media in comparison with representatives of other ethnicities, and it continues to grow under the influence of the pandemic (Grace, 2020). In addition, the purchasing power of the Black population is growing as well. At the same time, Blacks prefer convenient and affordable services – in other words, they choose a ready product with good quality and at an affordable price, and stay extremely loyal to companies that meet their expectations. In addition, several children in families influence both parents’ customer behavior and entertainment routine. As previously mentioned, this subsegment will choose Disney+ for an affordable price, convenient service, and content for everyone. Finally, addressing the Black population will substantially improve the platform’s reputation as concerning tolerance and equal human rights is essential nowadays.
Marketing Message
According to the current values of Disney+, the platform focuses on the streaming convenience provided by modern technologies, classic content, and the latest trends offered by modern franchises. In other words, it combines the traditional type of entertainment with the most convenient form of content distribution and well-known films, series, and shows with favorite universes’ brand-new content. At the same time, this value proposition is reliable concerning a new subsegment. Black families chose both familiar franchises and new releases for watching using modern ways of story distribution. However, in this statement, the company may add its value of diversity, inclusion, social support, tolerance, and equal human rights.
Considering the growing importance of diversity, inclusion, and equality issues, for Disney it is vital to focus on creating a new marketing message that will help to consider the needs of its audience. It will also contribute to the broadening of the target audience and the acquisition of new loyal clients. Thus, for a new subsegment, the marketing message will be the following: “Disney+ not only offers the largest collection of classic masterpieces and the newest releases combining traditional entertainment with modern technologies for all your family – it respects your identity, your heritage, and equality.”
Shifting to the given message will cultivate several positive outcomes. First, as stated previously, racial minorities respect brands considering their needs. It means that by introducing a new idea, Disney+ will affect this segment and can count for a significant increase in the number of loyal clients. Second, the establishment of a new, more tolerant, and inclusive marketing message will improve the brand’s reputation and demonstrate its attention to communities’ needs, which is vital in the modern business world. Finally, it will create the ground for new diversified and inclusive projects crucial for the development of the brand. For this reason, the use of a new message is justified by several factors.
Marketing Communication Tools
In general, the main strategy of the platform for the attraction of an identified subsegment is the creation of more Black-related and diversity-related audio-visual content along with the preservation of previous formats. It may include talk shows conducted by prominent Black influencers, conversations with influential Black musicians, athletes, actors, and businessmen, and films with Black or other non-White actors or directed by Blacks or non-Whites. People should feel that the company aims to satisfy their unique needs and value their differences. For this, particular promotion tools should be chosen, predominantly to inform potential subscribers about the company’s values. First of all, personal selling and direct marketing may be regarded as inappropriate tools. Both of them presuppose the platform’s direct interaction with potential clients. These tools cannot be used by an international platform with millions of subscribers all over the world, and a new subsegment is relatively big as well.
At the same time, general advertising and digital promotion, sponsorships, public relations, and sales promotion may be regarded as efficient marketing communication tools that may be used. At the same time, it is possible to distinguish advertising and sponsorship as the most efficient tools. As an efficient tool for the communication of ideas and the benefits of services and products used by both commercial and non-profit organizations, digital promotion and general advertising may help Disney+ articulate its message. For example, the platform may advertise new diversity-related content or the presentation of material related to its renewed values through mass media, social digital platforms, and traditional sources. The platform should be presented as the most efficient and affordable source of entertainment for children and adults. At the same time, advertising should be cautious concerning consumer targeting. For instance, in 2018, Netflix was accused of targeting potential customers based on their race and ethnicity (Iqbal, 2018). The platform prepared several variants of the same film’s posters and show materials with Black actors to Black social; media users even if these actors’ roles were insignificant. This practice may be regarded as inappropriate – non-White consumers prefer to be treated equally.
The articulation of the message is closely connected with its elements and the people whom it addresses and by whom it is spread. In the case of Disney+, the platform may demonstrate its commitment to newly identified values through interaction with people who are connected with them. For instance, the platform may sponsor Black athletes or human rights activists whose influence on the audience is undeniable. The brand might align close cooperation with numerous activist groups to consider their current needs and support their projects. It might also include involvement in important community incentives aimed at improvement of people’s lives and providing them with things they need. The given strategy will contribute to the generation of several vital benefits. First of all, this approach will help the company’s marketing message spread. Real actions will demonstrate that the brand not only makes proclamations but also engages in projects that might help to alter the situation. In addition, these activities show that it supports diversity and equality in all spheres of life attracting a new subsegment. It will improve their reputation and contribute to improved customer relations and the growth of their loyalty.
Recommendations
Thus, new subsegments that should be addressed by Disney+ are Black women and men, aged 27-41, predominantly with families, with middle income, from urban and suburban areas. First of all, minorities are underserved and poorly represented among the platform’s subscribers, however, their customer loyalty, growing purchasing power, and impact on almost all spheres of life should be considered. Black spend considerable amounts of time online looking for the most convenient and affordable types of entertainment. At the same time, the streaming service will be more popular among families for the provision of content for everyone available without leaving their homes. At the same time, addressing the Black population will improve the company’s reputation and allow it to position itself as tolerant and respecting equality and human rights. Thus, this aspect should be addressed in the platform’s updated marketing message to target a new subsegment.
Conclusion
In general, the platform should demonstrate that it values all people regardless of their nationalities and respects equal human rights. For this, it should create and provide more Black-related and diversity-related audio-visual content, including shows, series, and films, along with the preservation of previous formats. At the same time, consumers should be aware that the diverse population is involved in the creation and distribution of content through acting, directing, or scriptwriting. For the promotion of new materials and a new message’s articulation, advertising and sponsorship may be distinguished as the most efficient tools. The platform may advertise new diversity-related content or the presentation of material related to its renewed values through mass media, social digital platforms, and traditional sources being presented as the most efficient and affordable source of entertainment for children and adults as well. Finally, the platform may sponsor Black athletes or human rights activists whose influence on the audience is undeniable to spread its message and emphasize its values.
References
Agnihotri, A., & Bhattacharya, S. (2022). Disney: Restructuring for success with video streaming service Disney+. SAGE Publications: SAGE Business Cases Originals.
The silent era was a period linking 1980 and 1930. It was characterized by implausible improvement in sound technology. This revolutionized the fast growing cinema industry. The art of animation was noticeable during this period since it moved from canvas picture presentations to live acts.
Human beings wore adorned costumes bearing insects and animal resemblance. Several actors and directors are credited with this evolution. These include Wladyslaw Starewicz and Walt Disney. This paper compares and contrasts the lives and works of these individuals since they are the animation kings of the twentieth century.
Early life
“Wladyslaw Starewicz was born in Poland in the late 1800s” (Wladislaw [sic] Starewicz: Animation Pioneer par 1).Several variations of the accounts of his early living exist. He studied at the institution of “Fine Arts in St Petersburg in Russia” in the early 1900s (Wladislaw [sic] Starewicz: Animation Pioneer par 1). After his studies, he commenced his work as an animator.
Starewicz claims to have started his animation work while operating as an administrator at a museum. According to Walt Disney “Walt Disney was born on 5 December 1901 in Chicago Illinois, USA”.
As a small boy, the family moved to Missouri, which is reputed to have the muse and replica for the focal street of Disneyland. There is where he started going to school and first expressed the feel and aptitude for artistry through painting with crayons and watercolors.
Despite of his unclear backgrounds, by 1910 Starewicz started to make motion pictures that the world had not witnessed. He utilized his knowledge and in-depth interest in insects to make movies that starred the denizens of the natural world in Aesopian style moral fables (Wladislaw [sic] Starewicz: Animation Pioneer).
However, Walt was still a boy aiding his father with his newspaper business while studying cartooning with a correspondence institute before later taking up classes at the “Kansas City Art Institute” (Walt Disney). In 1919, he combined with a fellow artist with whom they made the first animated commercial clip (Walt Disney).
Work and achievements
The earlier work done by these two artists had different levels of triumph. From their 1922 studio, Disney and his friend Iwerks made a succession of vivacious caricature sketches called “laugh-O-grams” and a first film, “Alice in Cartoon land,” which were not successful (Lehman 24).
The failure of these two releases made him file for bankruptcy and greatly cast a shadow on his memorable vocation as a film director. Starewicz had a very impressive start to his career.
He had several short releases but first among them is the appealing and technically imposing hilarious film The Cameraman’s Revenge. This film, released long before WWI, is considered a masterpiece of the pioneer stop, film industry (Wladislaw Starewicz: Animation Pioneer).
“The Cameraman’s Revenge”, which focuses on the animated Mr. and Mrs. Beetles idolatry and their final reunion for life in a penitentiary, is not only hilarious but also educative (Lehman 12). This is an example of Starewicz fearless urge to both entertain and educate the public about the ills afflicting the society.
Concurrently, most of Disney’s releases such as the Skeleton Dance were purely entertaining. In particular, this film proved costly due to the need for more complex drawings and technical jobs required.
Disney was a dreamer who expressed his dreams and imaginations through art. However, it is worth noticing that most of his gains went to the next project, which in turn financed the next one.
Disney work was to achieve his imagination, implement it in practice, and achieve a given level of profit. Contrary to this, Starewicz, who led a noble life, did not find pleasure in big profits. He derived pleasure from the satisfaction of his viewers and the society.
According to Lehman (14), in the mid and late 1920, animators drew most of their themes and stories from traditional African American than any other race in the US.
In addition to this, studios also used the blackface design for transmutation gags for animal stars and well-liked complementary songs that drew laughter at the expense of the African Americans. This technique also included the use of many unrefined and rudimentary jokes carrying ethnic and anti-semiotic undertones. Mickey mouse, the black face musical actor of Disney’s was no exemption.
This is a show of a greater disregard and lack of approval of some races. This is not present in any of the works done by Starewicz. He also enjoyed success before the invention of sound in motion picture, and his use of natural lighting and real-world scale to represent the scenes were perfect such that the story played along harmoniously.
The inclusion of sound in the animated films was a welcoming joy to many in the 1928s. It provided an avenue for commercial ventures at the expense of the audience. According to Lehman, (16), many distributors insisted that films characterize tunes owned by them.
A good example is the “Old Folks at Home performed in Mickey’s Follies in 1929 and Dan Emmet’s “Dixie”, in Mickey’s Choo-Choo of 1929” (Lehman16). While this provided a good accompaniment to film, it shifted the noble animation industry to more of a commercial venture aiming at huge profits through promotion of music. This was a different path from the one envisioned by many like Starewicz.
Lehman, 16) emphasized the fact that despite the retrogressive impact of the use of blackface and traditional African tunes was to the African American, it played a very important role in commemorating the release of the African Americans from bondage.
It also helped cement the position of the Africans as solid constituents of the American society. After WWI, while working in France, he continued to work on stop-motion puppetry films, mainly children stories featuring animals involved in brave moralistic endeavors through out the silent era.
The silent era sow a period in which the economic depression affected the whole world, stretching from Americans the European countries. The only places that still afforded families some comfort was the cinemas.
In Europe, Starewicz work such as “The Tale of the Fox” was instrumental by offering words of encouragement to their audience. These two icons of stop motion are arguably the giants on which successive directors of animation movies today stand.
Conclusion
According to Lehman (14), many cinema audiences are weary that few genres can still inculcate blameless conjecture that welcomed the nickelodeons. The stop film is still an exception owing to the great work by two pioneers. It is needless to state that Disney stood on the shoulders of Starewicz. This is evident in his blameless work, long before works by Disney were presented to the animation film audience.
Works Cited
Lehman, Christopher. The colored cartoon. Massachusetts, MA: Massachusetts Press, 2007.Print
Walt Disney’s World budgeting and planning have mapped the company as the most competitive media corporation in the world. From previous scenarios, Walt Disney’s budgeting brought them more revenues, especially before the pandemic. According to Khalid (2021), the company budgeted to increase its spending on content to $33 billion in the 2022 fiscal year, budgeting that started on October 1, 2022. The increased budget aims to increase their streaming capabilities to expand Disney Plus and HULU rather than the previous focus on television streaming.
The monstrous spending technique underlines how Disney draws closer to direct-to-consumer content as a high need, growing its interest in streaming. The yearly planning report explains that Disney intends to deliver roughly 50 titles for dramatic and streaming dissemination during the financial year (Khalid, 2021). The organization additionally specifies that its pressed delivery timetable might be influenced by the new targets’ markets (Dybek, 2021). Considering their competition, their investment budget is higher, thus proving to be more powerful. The budgeting plan concerns the rise of streaming competition and the ability to increase their revenues, as observed in previous years.
As Disney moves to a solid spotlight on direct-to-customer plans of action, the organization is moving forward with happy creation and dispatching in all cases to take care of Disney Besides, Hulu, and different stages. The organization’s Overall Amusement Content unit gauges it will deliver approximately 60 unscripted series, 30 drama series, 25 show series, and five made-for-television motion pictures and specials throughout the 2022 financial year (Dybek, 2021). These plans give the company an advantage in the market and ensure continuous engagement with its consumers.
Walt Disney has also increased their budget for the new Chinese and Nigerian markets. The new Walt Disney World in Nigeria opens new opportunities to study and invest more in the new market. Africa is among the continents where media corporations have not established their roots. Most media corporations, such as Netflix Plus, have tried to establish a streaming company in Africa with no returns on investment (Yahoo is part of the Yahoo family of brands, n.d.). But for Disney Walt Word, the plan to slowly capture the market through studying the needs of the consumers is promising.
Company’s Financial Ratios and Industrial Comparison of the Ratios
Disney has been heavily affected by the pandemic. Especially concerning the frequency of its parks and shops – directly related to the drop-in tourism. But in the fourth fiscal quarter of 2021, its last balance sheet, Disney had a net income of US$ 159 million, thus reversing the loss of US$ 710 million in the same period of 2020 (Walt Disney Co. – AnnualReports.com, n.d.). Even with the effect, the company has shown resilience with a growing ROE in the past year (Yahoo is part of the Yahoo family of brands, n.d.). The following Figure presents Disney Walt World Growth since 2017.
Figure 1. Walt Disney Net Growth (Source: The complete toolbox for investors | finbox.com, n.d.)
As observed in Figure 1 above, the company’s gross profit had fallen to less than $ 18 Billion. The company added revenue of $18.5 billion in the three months ended October 2, up from $14.7 billion in the same period in 2020 (The complete toolbox for investors | finbox.com, n.d.). From May 2021, the company graph movement is positive, with a promising growth to up to $ 25 Billion by May 2022 (The complete toolbox for investors | finbox.com, n.d.). Generally, Walt Disney’s ROE has experienced recessions and peaks for the past few years.
In comparison with its competitors, Walt Disney World has also been competitive, considering they have a substantial unutilized market. Walt Disney has been competitive and able to increase its ROE over the past year. It was more affected by the pandemic since it relied on tourism and physical studios (Walt Disney Co. – AnnualReports.com, n.d.). But with increased investment in the streaming business and the blooming tourism market, Walt Disney World has seen more growth in its ROE. Figure 2 below shows a comparison between Walt Disney and its competitors.
Figure 2. Walt Disney ROE Competitive Analysis (Source: Dybek, 2021).
Future Prospects of the Company
Disney will be one of the most powerful and riches multimedia corporations in the future. One major promising factor is the growth of their consumer base and the chance to reach even more consumers. The Disney+ platform has surpassed 118 million subscriptions in more than a year, far exceeding the company’s expectations (Dybek, 2021). When the platform was announced in 2019, Disney estimated it would have between 60 million and 90 million subscribers by 2024. In other words, the five-year goal was reached in a few months (Dybek, 2021). Even Netflix CEO Reed Hastings, the brand’s competitor in streaming, called the feat “surprising” (Khalid, 2021). Through this, Walt Disney has parks and all its stories, characters, and franchises, bringing more profits. They are the attractions in the theme parks, the cruises with characters, toys, costumes, and video games that will continue to grow their revenue in the future.
Analysts now project a new goal for Disney’s streaming: to reach 158 million subscribers in five years. With the closing of movie theatres in the pandemic, Disney postponed part of the productions and anticipated the launch on streaming – in some cases, for an additional price. The strategy can now be adopted permanently, with shorter viewing time in movie theatres and faster availability of titles online. Dybek (2021) highlighted a 60% year-on-year growth in the subscriber base of its leading streaming service, Disney+, a Walt Disney World channel, which reached 118.1 million customers.
In terms of planning, Walt Disney has acquisitions that continue to generate value. Acquisitions are where Disney+ is inserted, Disney’s lucrative bet to compete with the big players in streaming. Disney+ works all the Disney character hall, including the entire Marvel universe, Star Wars and other great films, which competitors don’t have, making its future growth impressive (Dybek, 2021). Through these and other diverse business areas, the company produces and acquires a series of types of films, such as acting, animations, musicals, and plays.
Type of Stock Recommendations
From my viewpoint, I recommend a hold type of stock for Walt Disney. The advantage of holding a stock with Disney is that there are prospects that the profit margin will increase, as depicted by the ROE. Investors should understand that increase in ROE is proportional to an increase in the gains if they sell the stocks at a future date. Additionally, holding stocks limits charges that might be incurred during the selling and buying processes. In my case, I would prefer investing in this company as its future performance and productivity appear promising based on its financial ratios, such as the ROE.
Several aspects must be considered when thinking about investing in Disney Walt. Currently, the trade recommendation is to buy stocks in Walt Disney World. Buying is the perfect stock recommendation with the prospects and growth points at expected future growth. Disney offers a winning combination for long-term investors. Its core business, including theme parks and movie theatres, is growing again, while the streaming unit is becoming a powerful contender in the post-pandemic world (Dybek, 2021). This potency is one of the assets that has drawn much attention from investors since the Walt Disney Company is a company that operates in several segments, showing a great capacity for growth.
As the economy reopens and consumers are eager to return to their everyday lives following mass vaccination efforts in the US and other parts of the world, there are signs of the growth in the number of streaming users, and an essential engine of paper propulsion is losing some of its strength. This bearish cycle, in our view, offers a good entry point for long-term investors as the nearly century-old Disney enters yet another intense growth phase, thanks to its traditional businesses, including theme parks and the direct-to-consumer streaming service (Dybek, 2021). There may be some obstacles to this recovery trajectory, but Disney’s business diversification has everything to allow for a full recovery.
Disney is a company with a long history and has been undergoing constant development, being close to completing its centenary foundation. However, the entertainment company’s prominence exceeds its market longevity. One of the strengths presented is the variety of fronts in which it operates, which attracts investors. The financial market indicates that the diversity of sectors of the company provides more security to those who invest in it since the company has different sources of revenue. The stock managed a remarkable recovery since, more precisely, until the close of trading, the stock had reached more than $134 (Dybek, 2021). It is not surprising that a new record can be beaten coming soon, when the company resumes activities and businesses disrupted by the crisis, releasing new movies and reopening its theme parks.
Disney acquired Pixar for $ 7.4 billion, which obviously is a whopping sum. Purchase at such a high price reveals Disney’s eagerness to gain Pixar’s animation capabilities, talent and the creativity culture that are the latter’s unique features. Disney, however, will have to confront several risks in achieving the goals of this acquisition.
Disney’s acquisition of Pixar was of utmost importance to Disney because the acquisition provided Disney the world’s most famous computer animation studio along with its human talent. The benefits for Pixar in such an acquisition were that Pixar could access Disney’s marketing and distribution capabilities. On the basis of such an agreement Disney acquired Pixar during January 2006.
Disney’s acquisition of Pixar had always proved to be fruitful and had resulted in the production of several blockbusters. This acquisition had also helped Disney to establish a close rapport to Apple and its chief Steve Jobs who was a genius besides being a visionary. With his participation Disney could increase the digital content through Apple. Steve Jobs, the then CEO of Apple had assisted Disney in availing better technological advice and this had enabled Disney to enhance their creative capabilities and innovativeness.
Thus, the benefits for Disney due the takeover of Pixar were tremendous. However, on the flipside, there were several risks also. These mainly concerned with the return on investment. Since the value that Disney paid for the acquisition was far too higher than the actual worth, it would take Disney a much longer period to recover any return on the investment, though they can rest assured of appropriate returns.
There were, however, no technological risks. Another risk was that paying such a premium price for this acquisition deal would bring in financial losses for the firm due the return on investment period being too long. This, albeit temporarily, would reflect as loss in the company’s accounts, which may reflect adversely on their stock prices.
Another risk that Disney faced during the acquisition period was the entry of Steve Jobs into the directorial board in the newly merged firm. Being a popular icon in the business world, he could easily surpass Disney’s CEO, Robert Iger.
This could result in the business being dominated and spearheaded by Steve Jobs and Robert Iger being sidelined. This was one of the fears shared by Disney team during the acquisition process, who thought that the merger instead of partnership with Pixar, “might make Iger second to the powerful and experienced Jobs” (Disney’s Acquisition of Pixar par. 4).
Pixar’s teams had extraordinary creative talent pool which would force Disney to become highly dependent on Pixar’s employees and this allowed Pixar the power to negotiate at a very high price for Disney. Thus, Disney had no option other than to pay the premium price because otherwise Disney would be losing its business.
Disney also had to compromise on other grounds. For example, Iger agreed to a long list of guidelines which protected Pixar’s creative culture even though the two firms were merged and known as one firm. It was quite understood by the CEO, Robert Iger that Disney could not stand alone and compete in the market without the merger with Pixar.
This allowed Pixar to raise its acquisition price because their stocks were, doing pretty well in the market. On the other hand, Disney sustained several flops in its creative films which had very severely impacted the prices of its share in the market.
Therefore, even though Disney was the acquirer firm yet they had been forced to compromise on several aspects because they considered this acquisition to be crucial for their survival and thus agreed to pay a premium price.
According to Porter’s five generic strategies, companies can achieve competitive advantage through; focus strategy, cost leadership and differentiation strategy. Companies can gain competitive advantage by targeting market segments with broader opportunities for future expansion.
Walt Disney faces stiff competition from Universal Studios, Six Flags and SeaWorld. The microenvironment in this industry gives buyers a higher bargaining power because of the low switching cost. Thus, Walt Disney has to apply differential strategy in order to remain competitive and relevant. However, its rival Universal Studios uses customer focus strategy to penetrate into new markets and retain new and old customers.
Differentiation strategy
For Walt Disney to effectively apply differentiation strategy as one of Porters five generic strategies, it must possess the capability to develop unique products and services that are difficult to imitate. According to Porter generic model, customers must perceive Disney products as being more superior to those of their competitors. In order to achieve these goals, Disney must develop a unique brand name that is perceived by customers as having desired qualities.
Using this logic, we can conclude that Walt Disney uses differentiation strategy. First, the company focuses on consumer goods, Theme Parks and Resorts, Media Networks and Studio Entertainment. Walt Disney has succeeded in diversifying its products and services which has enabled the company to grow both horizontally and vertically. In fact, the company intends to differentiate its operations by opening new theme parks in China and Russian.
Disney also employs the focus strategy that concentrates on a particular market niche that has less competition. Walt Disney targets young children and their families by focusing on creating emotional connection between its theme parks and customers. This approach has enabled Disney to charge a premium price for superior qualities in its theme parks (David, 2015). The main advantage of Porters generic strategies is that a firm can be able to charge customers a premium price for its uniqueness.
Disney Parks also apply focus strategy in the sense that the company concentrates on young kids and their families. In fact, Goold & Luchs (2010, p.118) refer to Walt Disney as a ‘wholesome family entertainment’ company where no alcohol is sold. However, its chief competitor Universal Studio is more of ‘Disney big kids’ firm where alcohol is sold. Walt Disney has adopted generic strategy by diversifying its operations into different market segments.
Disney aligns itself with customer values and presents its brand name as a family friendly entertainment company. Moreover, the company has differentiated itself and adopted customer friendly practices in all its activities. The generic strategy is not risk-free.
In fact, Hitt, Ireland & Hoskisson (2009, p.113) postulate that customers might decide that the differences between differentiated products is too high and might opt for the cheaper product. In this case, Disney risks losing its market share to competitors that can offer customers a combination of products that are consistency with their taste and preference.
Another disadvantage of generic strategy is that Walt Disney might lose its means of differentiation that customers are willing to pay. In this case, a rival company might have the capability to imitate a product that is perceived by customers as equivalent to Disney’s products. The competitor might offer the same product at a lower price than Walt Disney. For instance, if Universal Studios gains the capability to develop a powerful brand name and offer the same quality as Disney, customers might perceive Universal Studio as offering the same product at a much lower price.
In summary, In order to remain competitive, Disney continuously reinvest in its operations to create unique features that differentiate its product with that of its competitors.
Goold, M., & Luchs, K. (2010). Managing the multibusiness company: strategic issues for diversified groups. London New York: Routledge, p.116-125.
Hitt, M., Ireland, R., & Hoskisson, R. (2009). Strategic management: competitiveness and globalization: concepts. Mason, OH: South-Western Cengage Learning,p. 113-115.
The following are the primary external variables affecting the competitive position of Disney based on the Porter’s 5-force Analysis. First, Disney enjoys high barriers to the new entrants’ business of its hybrid business model that presents it with many distinctive competitive advantages.
With a global presence and strategic partnerships for content distribution and development, the company is also well protected against increases in rival practices. However, the dynamic nature of the entertainment industry globally that is caused by technology changes can disrupt the business and cause the existing competitors, and new entrants have added advantages at serving customer needs.
Based on this fact, a five force analysis of Walt Disney reveals that the company has a significant threat from substitutes; there are alternatives to cable TV subscriptions presented through various Internet delivery channels. A notable alternative is a video on demand option available through renting services or podcasts. Many independent content producers are cumulatively eating into Disney’s ability to service its market needs competitively.
On the other hand, Disney has significant bargaining power against its suppliers as a major player in the entertainment industry, with exclusive rights to its theme parks around the world. Its exclusive content creation agreements and capabilities also increase its power against other suppliers (The Walt Disney Company, 2015).
Reliance on suppliers of merchandise to reach into the Disney character’s market gives Disney an upper hand in licensing matters, which increase its power against suppliers. On the contrary, consumers are not organized, with many industries offering liberalized access to television, Internet content, and merchandise business.
Therefore, Disney only faces mild threats of buyer power in cases of government regulation and reliance on resellers for its content distribution. Reseller services can dictate the terms of content purchase and distribution in their networks and online content delivery channels.
Disney EFE Matrix
The following is a table representing the external factor evaluation for Walt Disney. It is a summary of the weights posted by the strengths of the company against its threats. The positive figure outcome shows that the company is in a good position to counter its threats and make use of its opportunities.
It also has a compelling business case to keep on with its growth plans. The EFE matrix introduces additional external variables affecting Disney that were left out in the introductory part of the paper, given that the matrix arises from the variables identified in SWOT analysis.
Table 1: EFE Matrix.
External factors
Weight
Rating
Weighted score
Opportunities
Expansion into different market segments
0.2
4
0.8
Technologies to improve inventory and operation efficiency
0.1
3
0.3
Increased localization of products
0.05
2
0.1
Expansion of movie production to other countries
0.05
2
0.1
Growth in paid TV and paid internet content in emerging economies
0.15
4
0.6
Increase attractions in Disney land
0.05
2
0.1
Threats
External Security issues for persons
0.1
3
0.3
Security issues for assets (piracy)
0.1
4
0.4
Increased rivalry both direct and in substitutes such as online movie renting
0.1
3
0.3
Cultural backlash
0.05
2
0.1
Brand consistency
0.05
1
0.1
Total
1
3.2
Source: (Author).
With a total score of 3.2, Walt Disney has been successful at utilizing its opportunity to negate threats facing its business. The key highlights of the EFE matrix are as follows. First, Walt Disney faces expansion prospects for many of its current product portfolios in new markets and the existing ones.
Technological advances offer an opportunity for cutting coordination costs and other international management operations. There are various possibilities for the company to embrace local aspects of its various international businesses, including the introduction of new characters to the Disney family (Nielson, 2014).
Disney Competitive Profile Matrix
Disney’s main competitors, CBS and Time Warner, were considered in developing the competitive profile matrix. The table shows that Disney is at a better competitive state than its main competitors, with the main contributions being the advertising and financial position variables. One fundamental assumption of the data below is that conditions have remained the same and will do so in the medium term.
Table 2: Competitive profile matrix for Walt Disney, based on the author’s findings and The Walt Disney Company (2015).
Walt Disney
Time Warner
CBS
Critical success factors
Weight
Rating
Score
Rating
Score
Rating
Score
Advertising
0.20
3
0.60
2
0.40
3
0.60
Product quality
0.10
4
0.40
4
0.40
3
0.30
Customer loyalty
0.15
3
0.45
2
0.30
2
0.30
Global expansion
0.15
4
0.60
2
0.30
2
0.30
Financial position
0.20
3
0.60
2
0.40
1
0.20
Content portfolio
0.10
4
0.40
2
0.20
2
0.20
Market share
0.10
4
0.40
2
0.20
2
0.20
Total
3.45
2.20
2.10
Strategic recommendations
Piracy is a major threat facing the company while online movie renting options may also upset the ability of the company to scale its growth. Nevertheless, the advancements in technologies provide numerous opportunities for the enterprise to become protective of its content and address the two major threats highlighted in the analysis.
An increase in advertising expenditure across its global operations should help with brand consistency and improve customer loyalty, as well as augment the current strategies for global expansion. Adopting the strategies would be the right thing to do because they have had a significant effect on the company’s competitiveness. However, Disney must be careful to expand only in areas that increase its financial bottom line, as that is an important factor in its competitiveness (Team, 2015).
2013 3D animated fantasy movie Frozen is one of the latest productions by Walt Disney Animation Studios. It is often regarded as Disney’s most successful and influential piece amongst animated films that were produced over the last decade. With an alternative approach to writing leading characters, Disney has made a great effort to improve and rethink its female protagonists. While most of the older leads depicted gentle and dreamy girls who were in need of help from strong male characters, the new generation of Disney’s “Princesses” makes their path. Frozen’s main characters – Anna and Elsa represent this new generation denying any help from male protagonists except few cases, therefore affecting the production.
Female Leading Characters of Frozen
From 20th to the 21st century, Disney’s contribution to the animation was of utmost influence. As stated by Morrison, while following a seemingly similar plot, the princess series that Disney created remained hugely influential across the decades from 1937 (Snow White) to 2013 (Frozen) (2). In fact, when the titles of famous fairy tales emerge in the dialog, most of the participants would recall the shots from Disney’s animations. Therefore, it becomes apparent that the statement about Disney’s influence is not an exaggeration.
Furthermore, Disney’s influence has grown to the point where it has become a necessity. The meaning of that is that Disney’s products must now cope with the trends of modern society and, therefore, adjust its productions. Disney took notice of the growing feminist movement and adapted their characters to be more appealing to this part of the society. Disney’s main characters are overwhelmingly feminine, and they have always reflected certain traits that women of different times and cultures had. In order to stay relevant, character’s design always had to undergo certain adjustments. These adjustments led female characters created in this decade to become stronger and more independent (Streiff and Dundes 49). This point is further supported by Garabedian when she observes the gender roles that Disney characters had earlier and the roles that they have now; it is Frozen that breaks all stereotypes regarding gender roles including not one but two strong female leading characters in its plot (24).
To summarize, while growing feministic trends may not be the sole reason for Disney’s characters’ changes, it is obviously one of the main grounds of the alterations. Female leading characters have developed to be more powerful, strong, and independent from male characters to the point when they consciously deny their help or even their presence.
Examples from the Animation
Over the course of the animated film, the abovementioned influence takes form. Both main characters (Anna and Elsa) have a background of growing together and relying solely on each other (“Frozen | 2013 | Opening Scene,” 2016). They had to develop strong character and willpower which is especially evident for Elsa as she demonstrates that she can stand on her own even against great dangers (“Elsa Battles the Guards- Frozen 1080p HD,” 2014). However, what is most important is Anna and Elsa’s dedication towards each other. With Anna serving as an example, one can see that the modern leading characters of Disney are not only capable physically but are strong in their hearts as well. For example, when Elsa shows selflessness and dedication to her sister (“Frozen-Anna save Elsa,” 2014). Both sisters are in contrast, and they represent both power and compassion towards each other and their loved ones.
Conclusion
Creation of Disney’s Frozen was greatly inspired by the modern topics of interest. These topics are then conveyed through the characters of the animated movie. Furthermore, characters are presented from the new perspective that corresponds with current trends. Had it not been for Anna and Elsa’s dominant personalities, the plot of the movie would have been entirely different focusing on the older models of lead female protagonists.
Works Cited
“Elsa Battles the Guards- Frozen 1080p HD.” YouTube, uploaded by DrDman2000, Web.
“Frozen | 2013 | Opening Scene.” YouTube, uploaded by Tons of Cartoons, 2016, Web.
“Frozen-Anna save Elsa.” YouTube, uploaded by Wolfine Clarisa, 2014, Web.
Garabedian, Juliana. “Animating Gender Roles: How Disney is Redefining the Modern Princess.” James Madison Undergraduate Research Journal, vol. 2, no. 1, 2015, pp. 21-25.
Morrison, Danielle. “Brave: A Feminist Perspective on the Disney Princess Movie.” Semantic Scholar, 2014, Web.
Streiff, Madeline, and Lauren Dundes. “Frozen in Time: How Disney Gender-Stereotypes Its Most Powerful Princess.” Social Sciences, vol. 6, no. 2, 2017, Web.
The story begins with one stormy night when an enchantress curses a vain Prince and turns him into the monstrous Beast (Joey Webster). The only thing that can break the charms is the love of a young woman. Many years later, a maiden named Belle (Devin Jennings) gets into his enchanted palace as a prisoner and falls in love with the Beast. However, a hunter from Belles’ village named Gaston (Brandon Herron) wants to murder the Beast, but love triumphs and the Beast is converted back to the human body. The environment of the venue may be characterized as a comfortable theatre hall full of spectators from the age of six to 65 and older. People were dressed in casual and dressy clothes. I had a program, which provided brief information on the play being produced, the timeframe, and the theater details. I did not have any expectations.
How well has the Attempt Succeeded?
The production was rather eye-catching and successful: costumes, music, and singing. The play of actors was outstanding and coordinated, namely, they worked in collaboration to create crowd scenes. The actress playing Belle and dressed in the blue dress with the white apron was quite convincing and true to life, showing her smart outlook and kind heart as well as the vibrant voice, thus touching the viewers’ souls. The Beast’s character may be noted due to his sensitivity and attempts to be a gentleman for Belle. Since he wore the mask, the Beast expressed his feelings and emotions through voice and posture that aligned well with his image. To keep the attention of the audience, the actor playing Gaston used the entertaining mimics and voice to create a caricature. Gaston, who acted as the antagonist of the main character, also used laugh and mannerism simulating a brave man, yet his image was comical. He was dressed in black boots and pants along with the red shirt with the gold collar. The actors applied a full range of expressive means, including voice changes, mimics, laugh, posture, etc.
Design elements were elaborated thoroughly – spectators observed alive candlestick, teakettle, and duster – the servants of the Prince. The stage props were detailed, but simple, thus allowing them to focus on the characters. The costumes were creative and colorful. They were chosen considering the epoch and the genre of the play so that viewers have the opportunity to be involved in the story as if they were the participants. Throughout the play, lightning was dim and bright. At some points, it was like a spotlight on one or two characters of the play. It was primarily used to emphasize dramatic effects in such scenes as the Beast’s transformation, the night before Belle’s caption, and so on. The orchestrated lightning helped to achieve the perfect sound during the whole play to make every word and every scene meaningful. The set was designed masterfully and changed accordingly, making the perception of the play more easy and full. As for the director, it is possible to note that he delivered a resounding play and succeeded in unleashing the great power of the fairy tale.
Was the Attempt Worth-Making
The deportment regarding this play is admiration and the desire to view it once again. The atmosphere was welcoming and pleasant. I felt that I participated in some scenes, especially in the climax – the struggle against Gaston and other villagers. There were competent actors, who played outstandingly, attracting my attention to tones, emotions, and any important details. My favorite part is when Belle meets the alive yet unanimated objects. The only recommendation I can provide concerns the main actress playing Belle. Even though her role was performed well, it seems that there was some restraint in her actions. For example, when the Beast was angry, it would be better if her fear were more persuasive. Nevertheless, I would pay upwards for this spectacle and recommend my friends to visit it.
