The Walt Disney Company: Its Diversification Strategy in 2020   1

The Walt Disney Company: Its Diversification Strategy in 2020

1. What is Disney's strategy? Which of the five generic competitive strategies discussed in Chapter 5 most closely fit the competitive approach that Disney is taking? What type of competitive advantage is Disney trying to achieve? 

2. What does a SWOT analysis of Disney reveal about the overall attractiveness of its situation? Does the company have any core competencies or distinctive competencies? Also provide a TOWS Matrix that pulls together your SWOT and core competency thoughts.

3. What are the primary components of Disney's value chain?

4. What does the data in provided within the case reveal about Disney's financial performance? How well is the company doing financially? Case Exhibit 1 might also help with this information. Use the financial ratios in Table 4.1 of Chapter 4 as a guide for doing the calculations needed to arrive at an analysis-based answer to your assessment of Disney's recent financial performance. In addition to the ratios in Table 4.1, there are occasions when you will also need to calculate compound average growth rates (CAGR) for certain financial measures. The formula for calculating CAGR (in percentage terms) is as follows: 

CAGR % = [ending value ÷ beginning value] 1/n - 1 x 100 

(where n = the number of year-to-year or period-to-period changes)

5. What does the data in the case exhibits reveal about Disney's operating performance?

6. What does the data in the case exhibits reveal about Disney's business segments?

7. What entertainment companies appear to be Disney's closest rivals?

8. What does Disney need to do to strengthen its competitive position and business prospects vis-à-vis other entertainment company rivals?

9. What strategic issues and problems does Disney management need to address?