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Walt Disney

1. Value chain analysis


a. Inbound logistics: money, locations, actors, rented equipment, film rolls,
scripts, casting

b. Operations: make movies, shooting, video editing, cutting, special effects,


transportation, punctuality

c. Outbound: duplicate, distribute to cinema (analog) and digital (DVD, VCD,


online)
d. Marketing & Sales: market segments: children,
PR: advertising, trailer, events, fix release date, merchandise

e. Services: Analog, Digital: ensure transmission speed, subtitle

2. Value chain analysis (essential, focus, outsource)


a. Essensial: Inbound logistics and operations
b. Focus:
-Inbound logistics: Script, Director and Casting
-Operations: On-time for special events, shooting

c. Outsource:
-Inbound: Food supply, equipment provider,
-Outbound logistics: distribution to cinema, duplicate
-Marketing: advertising
-

3. PEST: Political, Economic, Social, Technology

a. Political: - Trade: WTO impact - copywright violation


b. Economic:
-GDP up => up demand for entertainment => industry growth
-
c. Social: - tastes: in the past: fairy tales; present: super abilities
- Population size and age: target to developed countries =>
Ageing countries  demand children film drops  solution:
make more films suitable for adults.
d. Technology: tech advances - new products  reduce cost, improve quality,
innovation.

4. Five forces
5. 3 generic competitive strategies

6. Business Strategy
7. 7 S-Framework

http://www.youtube.com/watch?v=B7drEvHo7vA PEST overal environment, 5 forces more


specific
http://www.rillo.ee/index.php?name=PNphpBB2&file=printview&t=530&start=0

http://www.essayclub.com/term-papers/Disney-Case-Analysis/8573.html
http://www.coursework4you.co.uk/essays-and-dissertations/analysis-of-companies/walt-
disney/waltdisney.

http://www.coursework.info/University/Business_and_Administrative_studies/Marketing/W
alt_Disney__SWOT__PESTEL_and_Porter_ana_L95813.html

Marko Rillov

Strategic Management 2006 - Homework - the Value Chain analysis of the Walt Disney co
marko - 12.10.2006, 15:06
Teema: Homework - the Value Chain analysis of the Walt Disney co
Please write down here your value chain analyses of the Walt Disney:

Support activities
- Admin / Management / Infrastructure
- Human Resource Management
- Technology Development
- Procurement

Primary activities
- Inbound logistics
- Operations
- Outbound logistics
- Marketing and sales
- Service
borismeda - 12.10.2006, 16:19
Teema:
Jelena HARITONOVA
Carlo RONZONI
Boris MEDA

Value chain : Disney toys.

Support activities

- Admin / Management / Infrastructure


Communication between the movie makers and the product designers.
Approbation of the different countries to allow the sell of toys.
R&D office and firm to design and manufacture products.

- Human Resource Management


Qualified people to offer a product which is the best quality as possible.
Experienced people who know the art of international trades.

- Technology Development
High technology level in order to create the characters, to carry out tests as efficiently as
possible without wasting time.
No need of licence.

- Procurement
Raw materials (like plastic and boxes) which are delivered by suppliers.
Furthermore they have to trust there subcontractors on delivery times for instance.

Primary activities

- Inbound logistics
Characters of the Disney movies. Indeed if the movie is a success so derivate products will
be also a success.
The adventures which are lived by characters to create products around the environment of
the characters.

- Operations
Respect deadlines for critical events such as Christmas for example. Indeed during
Christmas the majority of the profits are made.
Contain costs to offer to the consumer a quality product to a low price.

- Outbound logistics
Good delivery logistic because the Disney toys are delivered all around the word and it is
important to now and to control the delivery chain from the manufacture to the shops.

- Marketing and sales


Large range of choices to attract the consumer and it shows that Disney has a lot of “heroes”
and each one represent a moral value.
New products regularly to create a demand and never install a routine in the sells.
Advertising during the critical period: Christmas. It is really important because each year at
this time a Disney movie can be seen in cinema and after the derivate products are sold
thanks to the success of the movie
Sell the products in own shops.
Contracts with the biggest shops.

- Service
Call centre for people who are not satisfied by the product.
A guarantee in case of a dysfunction of a product.

matthieuherry - 12.10.2006, 17:01


Teema:
For Disney’s movies activity, our value chain analysis is the following:

Support activities

Administration and Management: Find money, Time planning


Human Resources: Recruit qualified personnel, Teambuilding
Technology development: Use new image technology (new cameras, new special effects…),
Use new animation technology (3D for example)
Procurement: Stages, computers, equipments (cameras, lights, microphones…)

Primary activities
Inbound logistic: Actors, voice performers who give their voice to the animated characters,
film rolls, rented equipment
Operations: create good stories, make the movie, video editing
Outbound logistic: duplicate the movie
Marketing and Sales: Advertising, looking for competitors, distributing the movie in
theaters

The students who work on this value chain are Antti Paajanen, Olivier Perrin and Matthieu
Herry.
ChristineStier - 12.10.2006, 17:03
Teema: Disney Movies
Support activities

Administration and Management/Infrastructure


Communication between every part of production (storywriter, movie maker, designer,
computerspecialists for animation and cutting)
Organisation of the actions and control timetables

Human Ressource Management


Motivated staff members with high potential in creativity and special knowledge

Technology Management
Control of the necessary technologies and using actual knowledges, save a high level
technology standart

Procurement
Material and staff to produce a film

Primary activities

Inbound Logistics
Performer, Comedians, …

Operations
Create a storyboard, Controlling, Cutting, Animation,Advertising…

Outbound logistics
complete movie
sulochana - 12.10.2006, 17:05
Teema:
Value chain - Theme park

At the outset we would like to say that one of our team members has dissenting opinions
and thus decided to do in his independent capacity. So remaining three (Yukiko, Kristina,
Sulochana analyse as follows:

Support activities
- Admin / Management / Infrastructure : finance , communication
- Human Resource Management : expert opinion , cooperation of team members
- Technology Development : licensing, sophisticated technology, innovation , creativeness
- Procurement : dressing
Primary activities
- Inbound logistics : souvenirs, actors
- Operations :ongoing entertainment
- Outbound logistics : monetary gains, phsical and mental satisfaction
- Marketing and sales :linking travel companies , airlines , touring ,hotels, advertisement ,
compliments
- Service : transportation , resorts, CSR , guidance
053006 - 12.10.2006, 17:45
Teema:
Feng shanshan, Hongli Zhang, Cheng miao, Wang yu
Value chain: Theme park

Primary activities:

Inbound logistics:
In order to satisfy the different demands of the customers, Disney must receive and
warehouse a large number of the raw materials, however, it will be not difficult for Disney
because it has enough money and places.

Operations:
Disney hosts wondrous special events most often to attract more customers, for example,
Magic kingdom park, Disney-MGM studios and so on.

Outbound logistics:
Disney theme park provides not only services but also many kinds of products related to the
theme park, for example, souvenir, book, toy. These products are produced by itself.

Marketing and sales:


Disney has been expanding a lot of their theme parks into many regions such as French,
Hong Kong, Toyko, etc, and bringing the brand name to all over the world, so it is obvious
that it has a huge market and abundant customers.

Services:
Disney theme parks offer a wide array of free guest services to ensure an happy experience
for all attendees, for example, baby care, check cahing, currency exchange, guidebooks and
maps, parking, first aid and so on.

Support activities

Firm infrastructure:
There are many function departments to complete finance, legal, qualtiy management
respectively.

Human resouces management:


Disney recruits qualified employee, then gives them training, development, and rewards.

Technology development:
Disney owns Research and Development to develop their high-level technology.

Procurement:
Disney is a unique and important customer of many of the suppliers, so it can secure the
lowest price for purchase of the highest quality.
gregoratzlinger - 12.10.2006, 19:07
Teema: Disney movies
Administration, Management, Infrastructure
providing money, install the organisation

HRM:
Persons who are able to hire qualified personnel, (and actor, director...)

Technology development
Developing digital animation software, but also script writing (the product is the movie, and
the script is the plan of the movie)

Procurement
maintainance of the movie equipment, catering,
______________________________________________________________________

Inbound logistics
actors, director, supernumeraries...

operations
shooting, cutting, synchronizing,

outbound logistics
copying, distribution to cinemas; distribution of DVDs

Marketing and Sales


Fixing the release Dates, Decide about merchandising, advertising

Service
no idea...

other members: Michael Bockmüller


fraukedoering - 12.10.2006, 21:17
Teema:
Group work of Imre Mürk, Eda Venkata Raji Reddy and Frauke Döring

Value chain: Disney movies

Support activities

Admin / Management / Infrastructure


Experiences and skills to run the projects
Planning the time so that you don’t overlap the deadline
Communication with directors, specialists, script writers,
Facility to locate the management
Contemporary office technology
Licenses and legally approved contracts and licenses in order to use intellectual property

Human Resource Management


Good knowledge of teambuilding to keep them motivated creative and generate synergy.
Experienced people who have the know-how of the movie making in all its operations.
Not allowed to fail choosing the cast actors, movie stars.
Educating and developing people/teams
Maintaining a good working-atmosphere
Good communication with all team-members

Technology Development
Modern digital high tech. shooting cameras and all the other equipment.

Procurement
Raw materials to make decorations in set place which are delivered by suppliers.
Cleaning service, electricity,
Providing actors with food, drinks

Primary activities

Inbound logistics
Cast, the actors, make-up makers, director, shooting operators, audio, background voices,
decorations, costumes
Good ideas for very good stories

Operations
Building the set place, direction, cutting the movie, mixing it together, shooting, lighting,
special effects (rain etc.)

Outbound logistics
Careful transport of the original tape to marketing and sales.

Marketing and sales


Making copies of the movie
Making trailers,
Promotional events,
Presentations,
Advertising
Contracts with the biggest regional movie distributors
Producing and distributing merchandise
Using different marketing-channels, traditional ones, like stores, but also online-distribution
Good public relation
Maintaining the reputation of the company

Service
Communication with media, fans,
give information to the customers, about background, stars etc.
Maintaining the internet-page
Give the customers the possibility to order movies online
hotline
christophangeli - 12.10.2006, 22:32
Teema: Wald Disney Theme park
Team: christophangeli,hubermartin and Thibaut Reymond
Value Chain (Porter)

Disney Theme park

Support activities

Admin / Management / Infrastructure


communication between theme parks
Finances (start up investing)
Political support

HRM
Qualified personnel
Team building

Technology Development
high level of technology (innovated / creative)
Licences

Procurement
cleaning (equipment)
Dress for mice

Primary activities

Inbound logistics
food
souvenirs
actors

Operations
special events
On going entertainment

Outbound logistic

toys
food
souvenirs

Marketing and sales


Toys
Family tickets
Combi tickets
Advertising (also the movies are a kind of advertising)
Presents in all the world
Enough stock
link the activities of the park with the previous movies activity for bad weather

Service
online tickets
hotels close to the park
WC´s
Free trains from the hotel to the park
taxi
adrienvino - 12.10.2006, 22:47
Teema:
Eduardo BOS
Ivar MALM
Adrien VINO

We have chosen to do the value chain analyses of the Walt Disney movie department.

Support activities

Administration & Management / infrastucture :


- finances
- good communication
- well defined hierarchy
- clients well targeted

Human Resource Management :


- qualified team (with skilled specialist) because it's a high competitive industry
- need to hire the best people so as to be able to fulfil missing place in case of people
leaving

Technology development :
- to be up to its reputation, Walt Disney must have the last topnotch equipment so as to keep
competitive advantage
- need to be innovative/creative
- can't fail in chosing the right strategy to avoid being left behind

Procurement :
- need to buy licences and technology patents
- everything must arrive on time (deadlines)
- must sign contract for a suitable period (actors)

Primary activities

Inbound logistics :
- actors, writers, movie makers, technicians, assistants, scripts

Operations :
- special events
Outbound logistics :
- prospect to have the best movie distributors
- make sure that promotional purpose are planned on time

Marketing and sales :


- must choose the best strategy in order to gain edge on the enemy
- huge advertisment policy for each movie release
- special offers/discounts

Service :
- official website for each film release with as information as possible
- must propose the best service to have potential learnings, and then being able to
compensate market share loss
- personnel for assistance, care in each cinema
Daria - 13.10.2006, 00:13
Teema:
Topic: Disney Consumer Products or Toys

Support activities
Administration and Management / Infrastructure
Includes Merchandising Licensing, the Disney Store, Disney Publishing, Walt Disney Art
Classics and Disney Interactive
Financing,accounting, quality management and publicity ( CD, Books, magazines)

Human Resource Management


The activities to cultivate new employees, to research new Products or Manager

Technology Development
Comprehending the technology evolution and Research

Procurement
Beseech raw materials, machines etc. to produce the Toys (like Computer Games, CD,
Books, magazines), worker like show
promoters, publishers and the company's characters.

Primary activities
Inbound logistics
Receiving,storage, stockcontrol, transport plan

Operations
Manufacturing, packing, test the toy

Outbound logistics
Selling, publicty, show promoters, publishers

Marketing and sales


Through show promoters, tv, radio, publishers Service, Audio and Computer Programms for
the entertainment market.
Internet and direct marketing also engages in direct retail distribution through the Disney
Stores
service
guarantee for their products with their name,

Disney is a trademark for everything


bogdangavrylov - 20.10.2006, 19:28
Teema:
About it written so many things... And almost nothing to add - all is covered by posts of
other people.
Could it be passed due to in the lecture we rewied completely Walt Disney structure and
their importance?
Kõik ajad on GMT - 10 Tundi
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http://www.slideshare.net/irwanarfandi/the-walt-disney-company

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http://www.youtube.com/watch?v=C5ME0lhRlHU
Marko Rillo

Strategic Management 2006 - Walt Disney case study - 5F analysis


marko - 11.10.2006, 12:21
Teema: Walt Disney case study - 5F analysis
Please write down your comments about the Walt Disney case study: do the 5F analysis
(rivalry, barriers of entry, suppliers, buyers and substitute products) of all the industry areas:
- Movies
- Toys
- Theme parks
christophangeli - 11.10.2006, 17:22
Teema: 5 Forces - Disney Company
Disney
Pixar got 15 Oscars for their work and was handled as the biggest competitor for Disney
(movie) until
Disney bought Pixar for more than 7,4 billion dollars. this year. (24..01.2006)
It is a good way to eliminate competitors – buy them

To define the competitors it is important to know what belongs to them:


ABC television network
10 broadcast TV stations
70 radio stations
Stakes in cable channels such as ESPN and A&E Television Networks
Walt Disney Studios produces in the name of Walt Disney Pictures, Touchstone, Pixar and
Miramax.

Walt Disney Word and Disneyland creates Walt Disney Parks & Resorts

Walt Disney Internet Group (ABC.com, Disney online, ESPN.com)

Walt Disney movie:


Supplier power: there is no real supplier power in the movie sector especially in the cartoon
sector. In this field you have to provide your movies with a nice voice. Therefore it exists
extremely talented artists but you can replace them if necessary

Thread of substitutes: not in the moment – maybe with new technology ; Also play stations
and other technical staff can substitute a movie at the moment.

Buyer Power: there are thousands and thousands of potential customers. Disney has the
money and possibility the do market researches and even there are organizations who try to
take influence it is not possible. (Premise is that the product is good) So the buyer cannot
influence the market.

Entry Threat: in the meanwhile movies are so expansive that it is really difficult to enter the
market. But with the right advertising and a good idea possible (like in nearly every market)

Walt Disney toys:


Supplier power: In my point of view the supplier of toys has no power. Especially in the toy
producing industry is a real big completion. So the Disney Company has the right to decide.
Furthermore I think that is not so difficult to gain the knowledge to produce the goods.

Thread of substitutes: I think that especially the toys from Disney have a short living circle
because they are only in demand before and after the movie.

Buyer Power: the buyer can not really influence or force Disney to do something. I think
only in businesses with a few consumers (like the steal industry in Austria) the buyer has the
power to bargaining.

Entry Threat: there are so many toys that is definitely possible that the kids (or target
persons) do not like the product. An Advantages of Walt Disney toys is that the have the
possibility to advertise their products with their movies. So first the child is watching the
movie and afterwards hopefully a latent demand arise (hopefully for Disney)

Walt Disney theme parks:

Supplier power: I do not know the structure exactly but if the do not have their own
manufacturing company for the adventure parks they would be dependent from this
company. Because I think only a few companies are allowed to produce such things.

Thread of substitutes: the thread of substitutes is low.

Buyer Power: the buyer can not really influence or force Disney to do something. I think
only in businesses with a few consumers (like the steal industry in Austria) the buyer has the
power to bargaining.

Entry Threat: is high because the competitor needs a lot of money and a name in the branch.
The movies helped the park the get known I think.  First a child see a movie 
afterwards it would be wonderful the see the movie star  in real life
olivierperrin - 11.10.2006, 17:38
Teema:
My answer concerning the 5-F study about Walt Disney case study :
Threats of new entrants : low. Walt Disney and their competitors are already well
positionned on a wide range of products (film, animation film, toys, clothes, TV, radio,
internet, theme parks...), so it s very difficult for a new company to become a real
competitor, unless it has a lot of money and can survive and develop itself without being
bought by one of the big ones.

Bargaining power of supplier : low. Disney is a very big company, therefore it has a quite
big power on its suppliers. And for most of the products, there exists more than one
supplier.

Bargaining power of buyers : moderate. we saw in the text that it is mandatory to answer a
customer need, otherwise, it wont work. For example before 1988, 60 pecent of the movies
lost money! If the buyer - here the customer - doesn t like the product you made, he will go
directly to your competitor...On the other hand, there are millions of buyers, so one of them
doesn t reprensent a significant fraction.

Threat of substitute products : moderate to high. Assumimg tha Disney gives mainly
entertainment : their movies, theme park, ... are not the only way to have a good time! It s
easy to find something else to do!

Rivalry among competive in firms in industry : moderate to high. As we can see on exhibit
8, Disney has some competitors, especially Warner against who they have to fight
constantly. For example, Pixar was doing really well and this market was presenting a real
opportunity. Disney took it but had to fight for it! As a few other firms are on the same
market than Disney, they always have to find new solution to remain first...
053006 - 11.10.2006, 17:38
Teema:
Student name: Feng shanshan
The Walt Disney company is one of the largest media and entertainment corporations in the
world. What are the factors that determined the company's success?

I would like to use Porter's Five Forces Model to answer the above question.

First Force: Threat of New Entrants


The threat of new entrants largely depends on the barriers to entry.
The barriers to entry are relatively high. Disney has dominated this entertainment market
since its founding in 1923, it will be difficult for such a new company to develop brand
recognition. For example, with the creation of Mickey Mouse, the world's famous animated
feature, the Disney name has became synonymous with quality entertainment for the whole
family.In addition, Disney covers a wide range of products and services in media networks,
studio entertainment, parks and resorts, and consumer products. However, the need to invest
large financial resources in order to support its diverse business, so the capital requirements
are extremly high.

Second Force: The bargaining power of customer is high.


Disney company concentrates mainly on the service and entertainment industry, so
customers have certain powers.

Third Force: The bargaining power of supplier is medium.


Because Disney company is a unique and important customer of many of the suppliers, and
the suppliers will be closely tied to the company. Facing high switching costs, the suppliers
do not want to change too.

Fourth Force: The threat of substitute products or services is medium.


Even though there are many other cartoon figures, theme parks, and movies in the market,
these do not pose a significant threat to Disney. Thanks to its unlimited reservoir of human
resources, rich experience, successful programs, and strong financial resources. On the other
hand, Disney must realize that the tendency in the market will be depend on the future
generation, especially in today's competitive business environment.

Fiveth Force: The jockeying among current contestants is low.


As a matter of fact, we have never seen any company have enough abilities to compete with
Disney at present.

All these reasons can prove Disney has became a world leader in the field of media and
entertainment.
olivierperrin - 11.10.2006, 17:41
Teema:
Tsiteerin::
It is a good way to eliminate competitors – buy them

yes, maybe the best way!


christophangeli - 11.10.2006, 17:55
Teema: statement
If you have an eye on Microsoft it seams to be the common way.
Every system that could be successful in the future is bought --- and linux is the next.
michaelbockmueller - 11.10.2006, 18:18
Teema:
I knew that the Walt Disney is a big company but have not known that they are running
such a big amount of different businesses. Personally I think this is the real problem of the
Walt Disney Comp.. Furthermore it is very hard to manage such a company because there
are a lot of different opinions between the managers and also there exicts many stakeholders
who only follows their own ideas and wishes.
According to this I like Eisner`s idea that new managers have to make a trainig program at
"Disney`s corporate university" to get the knowledge of the history and culture of the
company. Also the part of the training, which the new employees have to spend a day
dressed as a character at a theme park is as I think a very good way to show them what is
ment by "Walt Disney". Further, Eisner encourages ith this training the coherence between
the employees.

5 Forces:

Movies:
Rivalry: Columbia (Sony), Fox, MGM, Paramount, Universal Studios, Warner Bros,
Dreamworks. quite intensive branche;
Barriers of entry: Not easy to enter the branche because it cost a lot of money and you need
much know how, but I think Indian and Chinese Studios are on a good way.
Supplieres: actors, authors, settings. only a few have a powerful influence;
Buyers: private customers, cinemas, TV stations
Substitute: other possibilities to spend the freetime like museums, resteraunts, stay at home,
do sports, meet friends, play games

Toys:

Rivalry: Every toy producer and every other film company which sells their merchadising
products;
Barriers of entry: Not very big because mostly they products are cheap. Producers in Asia
could be a competitor for example also Walt Disney fakes (plagiarism).
Supplieres: material, designer for products
Buyers: Private customers, shops
Substitue: Books, new develoments

Theme Parks:
Rivalry: Universal Studios, Seaworld, Bush Gardens, Peramount Pic.
Barriers of entry: very hard because of the high investment but there would be some
competitors who could do this. But mostly it has no sense to open a second park in next to
another.
Supplieres: Coca-Cola, food etc. mostly lang term contracts and self-producing things, so
the they are not really powerful
Buyers: People who go in the parks, very powerfull
Subsitute: I think the same as at the point "Movies"
martinhuber - 11.10.2006, 18:35
Teema: Walt Disney - 5 forces
Porters 5 forces analyse for Walt Disney

Threats of new entrance


Toys: Every company who has some money can produce toys with it's brands. I just have to
say that toys of Walt Disney are the most known toys all over the world. Mickey Mouse on
bags, Donald Duck on books and so on. I think the names and the mascots are the best way
of barriers for this market. In this case the risk is very low.
Theme parks: Every of the big players in this market has theme-parks and the market-leader
is Disney World. For me, it is impossible for newcomers to enter this market because it is
extremely expensive to build up a theme park and it is impossible jockeying for the postition
with every of these big companies. The risk is as low as it can be.
Movies: Everybody who is rich enough to produce a film and to hire famous actors/acrtress
is a potential threat In my opinion it does not depend on the name of the company.
Whatever Walt Disney has it's own strategy - it buys competitors if it feels threatend Pixar
for example. So the risk is low.

Bargaining power of supplier:


Toys: This is just for merchandising, it would be an huge amount of money Walt Disney
would lose if the suppliers jump off the train, but i am sure they won't. Having a cooperation
with this rich and big enterprise is just a bonus for the suppliers. And Walt Disney has the
possibility to set the suppliers under pressure and I am sure no supplier could afford
something like this. The risk is low
Theme parks: There are many producers on this world producing fun-park equipment and so
there is no problem with suppliers in this market. The risk is low.
Movies: The risk is low- moderate because if Walt Disney is not able to find very famouse
actors/actress people won't look their films. The same thing is with the special technical
equipment like cameras and so on - if there are no more suppliers who want make any
further business with Walt Disney, they could have a problem. I can not imagine that
something like this could happen but there is a possibility.

Bargaining power of customer: The risk is moderate to high: If the customer is not satisfied
with the products which were offered he will buy them from the competitor. This is the risk
of business every company has to deal with. We can see it in the article something like this
has already happened and it took some time for Walt Disney to recover from.
Threat of substitute products: At this time of view it is only a really high risk for the
merchantise-products like toys. If the trend or the wish of the children takes another
direction it is possible that toys be substituted. For the theme-parks the risk is moderate in
my opinion. They are just in threat if there is a totally damage in the theme-park and a lot of
people are killed because of the damage. The risk of substituting movies is very low.
Rivalry in this market is very high. WarnerBros for example. The competition in this
branche is really high in all areas. But as we can see what happend to Pixar we know the
strategy of this branche. Buy or be bought!
ivarmalm - 11.10.2006, 20:18
Teema: 5F analysis
This was a pretty interesting paper about one of the bigest enterprises in the entertainment
industrie nowadays. Here is my analysis:

Rivarly
Movies: If you look at as a big picture, than there are not so many competitors, but those
how are (Warner bros, Universal, Dreamworks, fox, paramount and cople of more), are real
threaths to disney
Toys: the rivalery in toymarket is intens. There are alot of other firms producing them. The
rivalery is big
Theme parks: Nevertheless the admisson prices of disney beeing relativly higher then the
prices of other theme parks, they are the most popular and most famous ones. As of rivalery,
there are quite a lot of competitors in the market (six flags, universal, paramount)

Threath of new entry


Movies: low, because of the high costs of moviemaking
Toys: moderate, because the cost of making toys in asian countrys are low. Nevertheless
disney has made a name for himself in the toymarket and its hard to beat that.
Theme parks: very low, because the cost of making a theame park is enormous. Another
thing that makes entering hard is that you have no guarantee that the peolpe will wisit the
park, wich means the risk to make ona is high

Barganing power of suppliers


Movies: not very powerfull, because none of the suppliers have a big influence.
Toys: not very powerfull, because the suppliers are also interested to making profits and the
materials they (disney) can get from different sources.
Theme parks: not very powerfull, because the equipment producers are building their things
for the theme parks and there are not new theme parks built every day. That means the
suppliers are interested in selling their products to disney and keeping the contracts.

Barganing power of buyers


Movies: The movie industrie depends largely from the auditory. If nobody is waching your
movie, there is no income. So the power of buyers in this particular market is big
Toys: moderate to high. Families are buyng toys for their kids anyway. It doenst matter if
they come from disney or they come from somebody else. If the kids like the toys of disney
or certain toys of disney are popular at the time, they get them.
Theme parks: high, because a park gets its proffit from the customers coming through the
gates and payng for things inside the park. If you dont have customers, its a disaster. The
opportunitie to chose between different theme parks gives the customer a pretty big power.

Substitute products
Movies: movies are just one way to spend your free time, to entertain yourself. There are
alot of other ways to do that (go to park, do sports, play guitarr, go to beach ...)
Toys: moderate. Gameboy, kids books, video games.
Theme parks: As for movies, this is also a way to spend your free time. You have many
other opportunities to do that.

Ivar Malm
[/b]
Daria - 11.10.2006, 21:53
Teema:
Rivalry Among
Competing Firms in
Industry:

Aol-Time Warner, Viacom-CBS, Bertelsmann VivendiUniversal, News Corp., Sony

Threat of
Substitute
Products:

There are all the time some substitute products, that didn't disturb the market of Disney

Threat of New
Entrants:

I think Disney is such a huge company, with their fingers in a lot of different kind of
Business Lines that they is nearly no chance to kick Disney out of the peak.

Bargaining
Power of
Buyers:

The Power of Buyers is big for years, and the movies are going by mouth to mouth-
propaganda through generations. That is only one field of the productline from Disney.
They are also widely known for their parks.

Bargaining
Power of
Suppliers:

Disney have a long list of suppliers, i don't think that they were lose all suppliers, they have
to much productline
carloronzoni - 11.10.2006, 22:22
Teema:
The Case of Study
> Enviroment:
On 2000 the economic situation of Wald Disney has started to increase again.The goal of an
annual growth of 20% was reached again thanks to profits of ABC and to Theme Parks.

Opportunities : 1) creation of news movies ; 2) creation of new programs on ABC ;


3) Possibility to promove Walt Disney's product on the ABC without cost
Threats : 1) Fix costs inside the ABC that are out of the control of the company

Strengh : 1) name of the Brand ; 2) Famous movies ; 3) experience and in particular


the one that have the teams ;
Weakness : 1) High level of cost to buy ABC ; 2) Increase of debt ratio from 20% to 34%
3) High cost for cliennts that go to the Disney parks for only one day.
4) Only children between 3-10 years old are the principal clients

> Problems: The two most imprtant financial problems that the harvard team found are the
fix cost of the ABC and the high costs of the theme parks for the clients.It's also usefull to
underline the fact that the stakeholders pretend an high annual growth level around 20%

> Solution : The company was able to solve the financial problems and return to have high
profits thanks to the profits from ABC that were higher than fix plus variable cost and to the
creation of turistic hotels inside the Theme Parks that allow the clients to spendmore than
only one day inside of them.

> 5F analysis

A) movies

The barriers at the entry are not high,every company can create a movie an lunch it on the
market.The key word in this field is "Creativity".
However it's better to underline the fact that to create and promove an animate movie a
company needs high investment for the technology and to buy what it needs to create the
movie.

Suppliers don't have a big list in this field.Infact the two basic elements to create a movie
are the technologies and the creativity to make born the idea.

Clients have a big power in this field.Infact the success of the project of a movie depends in
most of the cases by the fact if they like or not the movie.If a lot of persons will watch the
movie the profits will be high and so,also the products that come from the movie.

Actually there are not many products able to replace movies.The force "substitute products"
doesn't have that big importance.Movies are still a unique product.

Rivalry: Sony,Warner Bros,Pixar,Disney

B) Toys

Barriers of entry are very high.In particular because most of the toys came from cartoons or
movies.In this field Disney has an advantage on the other because creating a movie means
automatically that it has also the right on it to produce toys.

Suppliers : Low,infact there are few companies of toys to sell supplies.


Buyers : High:This market is very flexible and various today.It's important to pay attention
to not product to much because tastes of childrens change very fast.

Substitute products : Low,There are not real products able to substitute toys:

Rivalry : Disney Toys,Mattel,Fisher Price,Sony and Microsoft (the last two for video
games)

C) Theme parks

Barriers of entry : Moderate to High,create a park is not easy.It needs high investment and
the place to build one.Besides Disney Parks are unique in the world.

Buyers: Moderate.The success depend in part from the clients.They are the ones that dicide
if Theme park is good or not and the prices accetables.However the success of a Theme park
doesn't depend only from clients but also from the compnies

Suppliers : Low.They have to build the parts of the park.Besides in one country usually
there aren't more tha 5 bigs parks

Substitute : Low.There aren't real products able to replace the atmosphere of a Park and
what u fell when u are there.The only thing that could replace them are the videogames.

Rivalry:NO IDEA
gregoratzlinger - 11.10.2006, 22:29
Teema: [b]Five Forces: Disney[/b]
Movies:

Rivalry: moderate

There several different types of movies that are produced. The most known are fore sure
animation movies like “Lion King” in the 90s or the new computer animated Pixar films
like “Ice Age” in this sector of animation films Disney was the undisputed number one, but
these kind of movie was slightly substituted by Computer animation films. Dreamworks
Pictures (Shrek) produced some movies with quite better technology than Disney was able
to provide, and also built in some humorous elements that children weren’t able to discover.
But in the last years Disney overtook any competitor and releases the most movies in this
area.
In the area of real-movies there is a lot of competition, because Disney doesn’t only produce
family films anymore, it also started to offer action films aso.

Barriers of entry: low

In movie business there are not really high barriers of entry. Every movie needs a high
budget for producing and advertising etc, and it makes nearly no difference if the production
company is known or not. Only the executive producer (the person) makes the difference
because he has the connections to the actors, the distributors…

Suppliers: low
In the movie business the supplier group is very restricted. Normally it consists of people
like actors, synchronisation speakers, directors, computer animation specialists. In the case
of a movie with several episodes there might be a slight pressure from the actors because
they can’t be substituted easily, but if this is not the case there is nearly no force of
suppliers.

Buyers: high

In the case of such a huge concern it is very important to have a look on the needs of the
customers. If customers are offended it could happen that groups of people boycott all
products of the whole concern. For example the TV series “Ellen” caused a boycott in the
Southern Baptist, a large protestant church, because of the lesbian title character.
Normally the success of a movie depends on the quality and the content of a movie. If it is
bad nobody would watch it. So there is a big force coming from the customers.

Substitution: not existing / high

In movie business sometimes technologies were substituted, but I can imagine no threat of
substitution for the movie itself, that could kick Disney out of business. Technologies
changed from mute movies to fully digital on disc distributed (to cinemas) productions, but
the running picture was always the same. Maybe in hundreds of years there will be sth. like
in “Star Trek – the next Generation”, where the world around you could be projected and it
is touchable, but now there is no threat.

In another way if Disney releases a film, and shortly after another film for the same target
group was released, it is very dangerous to be substituted by the newer one, because
normally a life cycle of a movie lasts 2 or 3 months and if one week after the Disney release
another movie is shown most people will watch the newer one if it is quite as good.

Toys:

Rivalry: low

Disney has the big advantage of the synergy between movies and toys. Nearly all the toys
are merchandising products for the movies and so there is free and very effective advertising
to them.

Barriers of entry: high

To enter the market of merchandising toys is very difficult, because only if you produce a
movie that everybody likes and also the characters of this movie, you can think about
starting to sell such toys.
To enter the market of normal toys in the premium sector you have to do a lot of marketing
to make the brand well known.

Suppliers: moderate

Like in every producing business Disney is dependent on raw materials and energy. The
advantage is its size, and that the raw materials are not very sophisticated. So the supplier
normally can be changed without a serious loss.
Buyers: high

Nobody is really dependent on Disney toys, so they can’t set the price as high as they want.
The only opportunity Disney has is to make movies that children like very much, so that the
parents can’t say NO, but there is also a thin red line between price and desire.

Substitution: high

It is the same as it was with the movies. A new movie was released and the merchandising
product / toy is not interesting anymore.

Theme Park:

Rivalry: moderate

In some areas there are quite few numbers of theme parks, but in some others the count is
very high. Disney has the advantage that nearly everybody knows about the Disney resorts
that are spread all over the world.

Barriers of entry: high

It is very expensive to build up a theme park that is able to compete with the Disney parks.
Except of this fact the marketing synergies of the Disney concern are fully visible here.
Every new park has to build up a brand or a theme.

Suppliers: low-moderate

There are no suppliers except the energy suppliers. The power of them is not the most
important cost factor of a theme park, but uninterrupted service is essential. So if there is an
energy monopoly in a country the energy supplier has some power, if not then not.

Buyers: moderate-high

There is no substantial need for the buyer to enter a theme park and to have fun inside. So
it’s up to the park management to provide the buyer with the attractions he wants.

Substitution: low

There is nothing in my mind that could substitute theme parks. Maybe it’s the same like in
the movie’s substitution with the futuristic Star Trek device
matthieuherry - 11.10.2006, 22:45
Teema:
There is my Porter 5 forces analysis about Disney Company :

Rivarly
For movies, the competition is quite important because of many big companies. But this
market is quite different from others. If a company made a really good movie, normally it
will earn money, even if there are other good movies. The way of consuming movies is
quite different than consuming other products. You don't always have a need of movie, but
if the movie is good, you want to see it. The competition exists, but if you're good, I think
you don't have to worry so much of other companies.
For theme parks, it's quite different because parks'attendance is much lower than cinema's
attendance. When you're going to a park, you're not going to another one the week after. So
you have to be really competitive. I don't know for Tokyo, but when you're looking for the
other Disney parks, there are always competitor's parks not far from them. In California,
you have the Universal Studios park. In Florida, you have a Six flags park and a Universal
Studios park. In Paris, you have also a very popular theme park, named Asterix (Comic
character). With this competition, they have to get the big attraction or to advertise a lot.
For toys, the competition comes from licensed products of big companies as Mattel. For
example, the products which can be dangerous for Disney, are Marvel toys or Pokemon
toys. But I think Disney's toys are best sellers if the movies are best sellers, so they are
really dependent of movies activity

Threats of new entrance


For movies, I think that the probability, even if it is low, really exists. For example, a few
years ago, Dreamworks appears as a new movie maker. The company was created by the
help of many different people (like Spielberg) and was not part of a big entertainment
network. But maybe Dreamworks is an exception. It's quite difficult because of the costs.
For theme parks, I think it would be nearly a suicide to invest money to open a park next to
a Disney park, because there are not enough customers for many parks.
For toys, it's much easier. For example, I think that if video games company want to make
some toys, they got enough cash and they could be really competitive, but Disney is offering
not only toys but also an image that it's the only one to have it.

Bargaining power of suppliers


For movies, I think that the companies which are selling softwares used to make movies,
could be quite powerful, because for each activity, there should be only one or two very
powerful softwares. On the other side, for equipements, the power of suppliers must be quite
low.
For theme parks, I think the competition is quite intensive between suppliers, so their power
is really reduced. Just as an example, I think Coca Cola and Pepsi are fighting to be the
drinks supplier of Disney park, so Disney could easily have good prices.
For toys, the suppliers are so many that they have not influence.

Bargaining power of buyers


For the 3 activities, the power of buyers is quite important, because they get many options
for entertaining. If you're offering a bad movie, buyers won't go and see it, because they
could do something better.

Threat of substitue products


As I said before, the entertainment business is quite developped. Expenses for hobbies are
increasing much faster than incomes for movies or theme parks. That's the proof that other
activities are earning market shares (for example video games).
I don't know if I have to sort it in this force, but I think one of the biggest threat is fake
products for toys or piracy for movies. It's almost substitue products. If fake toys are
working, it's a proof that the customer thinks your product is too expensive for what it is.
anttipaajanen - 11.10.2006, 22:59
Teema:
5 forces

Walt Disney is a very gigantic entertainment company. It seem to buy out its competitors,
which is one way to solve that problem. Anyway here are some thoughts about Michael
Porters 5 forces model about Disney.
[b]Threat of new entrants:

To compete against Disney as a gigantic company, which have all the same field of
industries as Disney is very hard. To act as a big movie/TV studio needs lots of capital,
access to critical local distribution channels etc. So usually these kind of indie movie makers
are bought out. There is of course threats of new entrants in amusement parks, but they
usually are not worldwide so they only work locally.

Bargaining power of supplier:


[/b]
Disney is a very big company, so they have very good position in relation to the suppliers.
Maybe the theme parks are most vulnerable in relation to suppliers especially in Europe. But
overall Disney is that big company that it can change the suppliers as needed.

Bargaining power of buyers:

The bargaining power of buyers is quite high in every field of Disney’s industry. For
example if the movie is not good, the toys what are made of the movie wont sell. So Disney
has to be careful and take risks about releasing movies. Good risk was to make a movie
trilogy about Pirates of the Caribbean. It was first a very successful part of the theme park
and Disney wanted to do a movie about it. So the buyers showed the Disney what they are
interested in. In entertainment and service industry which Disney are in is very much
depending on the buyers.

Threat of substitute products:

The entertainment business is living now interesting times. Technology is giving more and
more possibilities to different kind of companies to offer services and products. Maybe the
game industry is the main threat of Disney if we consider games as the products. Also the
theme parks are under a very hard competition locally (malls, spas, golf, hobbies). Also you
can have very large amount of different kind of entertainment in your home these days for
example via internet.

Rivalry among competing firms in industry:

Movie/TV business is under quite hard competition. There are several big companies doing
the films/TV series. So they will fight for the audience and every movie Disney release it
could have some kind of plunge. These gigantic theme parks are quite unique and I don’t
recognize that much rivalry in that field of Disney’s industry.
fraukedoering - 11.10.2006, 23:18
Teema:
Walt Disney case study / 5F analysis

1) Barriers of entry
Movies: high, Disney can use economies of scale, because they sell many of their movies
Toys: low, no switching costs, no big capital requirements
Theme parks:
capital requirements are very high, smaller companies could never afford to build a park in
this size

2) Bargaining power of suppliers


Movies: low, because of their size, Disney can order a large amount, so their suppliers are
dependendant of them
Toys: moderate, products are differentiated, they have not so many suppliers, but as Disney
is a big company, they are important for the supplier
Theme parks: moderate, see toys

3) Bargaining power of buyers


Movies: high, movies are no essential goods, if the price is too high, costumer dont buy
Toys: low, the products are very differentiated, maybe brand is important for the customer
Theme parks: high, see movies

4) Threat of Substitue products


Movies: moderate, other movies could be also interesting for the customers, but Disney has
the advantage of his good reputation
Toys: high, on the market are so many different toys
Theme parks: low, other parks and leisure activities could also attract people, but because of
the name recognition, disney will not have too many problems, every child wants to go to
Disneyland

5) Intensity of rivalry
Movies: low, as the company is so big, they have no problems with jockeying for positions
Toys: high, but, Disney has no problems to pay some ad-campaigns etc.
Theme parks: very low, see movies
thibautreymond - 11.10.2006, 23:22
Teema:
These are my opinion concerning the 5 forces model of competition about Walt Disney:

Threats of the new entrants: very low


Disney and the competitors have dealt with this business for such a long time. Disney is a
name known in the entire world. So, it could be hard for a new company to take a part in
this business. By the way, this is an expensive business so a huge capital would be needed to
start in this business.
If there is one threat, it concerns the toys. But these products are closely linked with the
heros of the movies of the companies (in particular Mickey Mouse for Disney).

The bargaining power of the suppliers: low


Disney is a very big company present in the majority of developed countries and this is the
leader in his market. The supplies needed are simple products; there are many suppliers
available for that. So, Disney can be exigent and can change easily his suppliers.

The bargaining power of the buyers: quite high


In one hand, the business of Disney is related to leisure. So, there is nothing essential. If the
client doesn’t like something, he doesn’t need to buy it. That is why Disney have bought
and sold many field of activity (like newspaper, TV…) in order to be in accordance with the
demand.
In the other hand, the advantage of Disney products is: they concern lots of people all
around the world. So, there are many opportunities for making business.

The threat of substitute products: moderate


As I said in the last point, Disney provides entertainment. The success of Disney is based on
the brand name, on the popularity of his parks and on the name of the figures in the movies.
However, the people could want different types of entertainment; so Disney has to look
forward and be sure that people will looks for his type of products in the future.

The rivalry among competing in firms in industry: moderate


Disney has some competitors in each sector. The main one are Warner (Box office market),
and Dreamworks (animated films). But Disney is still the first one. And they have found the
good methods to remove competitors: just buy them (i.e. Pixar)!
borismeda - 11.10.2006, 23:43
Teema:
Adrien VINO
Boris MEDA

According to the 5 Forces theory, here is my work concerning Walt Disney:

Threat of new entrants :

Movies : Low. Indeed the brand Walt disney is a market leader in this field. The marketing
power of Walt Disney is so inpressive that new entrants aren’t a threat. For instance, the
firm Pixar has been a threat for Walt Disney and now, in reaction, the brand Pixar belongs
to Walt Disney.
Toys : Low. Because for the same reason of marketing power and derivated products. If a
movie is a success, the derivated products will be also a success.
Theme parks : Low. The Disney’s parks are really huge leaders on the theme park market
even if they suffer little competition, for instance with the Asterix Park in France.

Bargaining power of buyer :

Movie : Moderate. Concerning cartoons and movies there are a lot of quality competitors
and the consumers can make pressure by watching movies or cartoons from an other firm.
Toys : High. It really depends on the success of a movie.
Theme parks : Moderate. On the theme park field we think that Disney is less dependant
because people want really to have fun and Disney is a huge leader on the market so the
consumer can’t go to other park. Furthermore it has been proven that despite the ticket
hikes, buyers continue to come.

Threat of substitute product :

Movies : High.. For the movies the competition is hard and it exists a lot of similar products
which are good quality. Furthermore the development of interactive technologies could lead
to a decrease of the sales.
Toys : Moderate to hign. Indeed the emergence of video games for example shows that less
and less disney’s toys are saled.
Theme parks : Moderate. We think that there are a lot of ways to have entertainment.

Bargaigning power of supplier :

Movies: Low. This threat is very low because it’s a huge international firm with a lot of
pressure means and furthermore it’s maybe an opportunity for suppliers to work with such a
firm.
Toys: Low. Interruption in supply could damage but however the risk is low.
Theme parks : Low. Because all the brands which are supplying these parks need this
market.
Rivalry among existing competitors

Movies : High.. The competitors of disney are very famous firms : Sony, Universal,
Miramax, Time-Warner, Parmount...
Toys: High.. Mattel, Sony,...
Theme parks : Moderate. A lot of theme park exist but they can’t rivalize in size with huge
diney’s parks
sulochana - 12.10.2006, 00:49
Teema:
1.Threat of new entrants • Capital intensive
• Cost advantage
• Difficulty in distribution channel
• getting license is expensive
Movies – L , Toys - M , Parks - H

2. Threat of suppliers • Availability of physical resources in abundance


• Interruption in supply may prove a threat
to supplier
Movies –L ,Toys -L , Parks- L

3.Threat of buyers • High customer demand


• not price sensitive
• label
Movies – M, Toys - L, Parks - M

4.Threat of substitutes • Sufficient no. of substitutes


Movies – M,Toys - M ,Parks- M

5. Rivalry • growing industry


• label
• specialized competitors
• product differentiation
Movies –M, Toys - M , Parks - M
imremyrk - 12.10.2006, 00:55
Teema: Disney 5 F. by imremyrk
Movies:
Rivalry among competing firms: I think it is very high in that business. Only 60% of movies
making profit. Biggest rivals in film production are Sony and AOL-Time Warner. Also
Viacom CBS and Bertelsmann. In animated films probably the independent digit-cartoon
studios (like Pixar before). There is a very high exit barrier

Barriers of entry: Threat is low I think. Large capital requirements, need for experiences
what Disney have (they are quite unique)

Power of suppliers: authors actors, I don’t see a powerful influence because none of them is
big enough compare to D. And all of them have a big rivalry, lots of substitutes .Last bat not
least - D. is probably quite important customer.
Buyers: children, kids, families, adults, youngsters, distributors of movies, TV shows, home
videos/DVD-s, TV stations. Not concentrated enough to have a bargaining power. At the
same time probably there is a lot of forcing higher quality.

Substitute: computer games, Playstation-2, internet entertainment, theatre, LARP, live


entertainment.

Toys:
Rivalry among competing firms: There are a large number of equally balanced competitors.
High

Barriers of entry: Threat is low. Product differentiation. D. has one of the best known
cartoon characters in earth. (Great legend).

Power of suppliers: authors, actors, I don’t see a powerful influence because none of them is
big enough compare to D. And all of them have a big rivalry, lots of substitutes.Last bat not
least - D. is probably quite important customer.

Buyers: Threat is high. Buyers demand for low prices and new contemporary products.
Substitute: virtual toys, computer games, theatre, LARP, books, comics,

Theme parks:
Rivalry among competing firms: Threat is Low. The big ones are Vivendi-Universal and
AOL-Time Warner.
Barriers of entry: Threat is Low. Product differentiation
Power of suppliers: Threat that suppliers rise prices is high. I guess in food supply probably
is dominating few firms; as well I assume that there is few firms producing attraction
constructions.
Live entertainment artist can also rise prices because they have few substitutes.
Buyers: Threat is low. They are not concentrated. But then again forcing higher quality.

Substitute: Threat is moderate. Camping, hiking, traveling, ski-trips,


hongli - 12.10.2006, 07:49
Teema:
Disney Company was founded in 1923, and has became a world leader in family
entertainment, a the World's largest family entertaining company ,it successful factors is
Five-Forces :
The first force is the threat of new entrants. Since the Disney company has been able to find
a very distinctive niche in the industry, the entrance barriers are relatively high.
The bargaining power of customers is high in the service and in the entertainment industry.
The bargaining power of suppliers is moderate. As the Disney company is operating in a
highly differentiated and unique industry with high switching costs associated with
operations, the suppliers are dominated by a few companies and is most probably very
concentrated.
The threat of substitute products or services is moderate to low. Obviously, Toy, theme
parks, and movies can penetrate the market in which Disney is operating in.
Jockeying among current contestants does not play a very important role in Disney's
external operational environment.
Disney's main strength is in its resources, experience in the business, its low-cost strategy.
ChristineStier - 12.10.2006, 08:22
Teema:
Case Study Walt Disney

Thread of new Entrance


moderate
Disney have a special place and is very known but there are many new coming companies
which use new technologies (3 D Animation…)

Bargaining Power of Suppliers


Low
Disney can change easily his suppliers if it’s necessary. It’s such a big company
that there are so many options to change or search for good other cooperations

Bargaining Power of Buyers


Moderate
The problem is what the buyer wish. It can be that the buyer don’t like a product. But Walt
Disney have a broad offer of products and can compensate losses

Thread of Substitute Products


High
Other movies or entertainment activities can be more interesting

Rivalry
Because of the famous name the position of Walt Disney seem to be safe But there are also
the other companies like Sony, Microsoft,..
yukikotomii - 12.10.2006, 08:29
Teema:
Movies
Threat of New Entrants:NOt easy to enter the market However, Other Cartoon or Even copy
product(vaiolation of intelectual property)
Bargaining pwer of buyer:Private customers, TV channel, Movie theaters.
Bargainining power of suppliers:Voice actors, Bank whch finance the cost.
Threat of substitute products:other cartoon movie. and copy products.
Rivalry:Studio Gifri(spell is not sure...) fox, Warners, Universal studio

Toys
Threat of New Entrants:Not big, however some brand( such as lego, barby, hello kitty, also
disney) establish big brand image. In this erea, there is big problem of violation of
interectual property.
Bargaining pwer of buyer:Private customers.
Bargainining power of suppliers:material supplier.
Threat of substitute products:other toys, TV game, Internet,.
Rivalry:Other toy producers, copy products with comparative cheap price than original one.

Theme park
Threat of New Entrants:BIg. In spite of big investmnet is neded, many theme park often
renovates for repeat customer and new customer.
Bargaining pwer of buyer:Private customers.
Bargainining power of suppliers: supplier who supplier goods(good, suvernir..etc), sponsor,
Threat of substitute products:other entertaiment, such as movie, theater, DVD at home,
shopping center, trip to countries..
Rivalry:high.thereis always competition among other theme park, Universal studio, fuji-kyu
land,
bogdangavrylov - 12.10.2006, 08:32
Teema: 5F Analysis of Disney Company.
Movies

Rivalry:
- Few other big companies
- Same good brands
- Sometimes better quality
- Quite high customer loyalty

Barriers of entry:
- High cost enter barrier
- Initial knowledge how to produce
- May be only possible way throw aqusition

Suppliers:
- A lot of possible suppliers
- Can be substitute by others

Buyers:
- International customers
- Throw the whole world
- All possible range of ages - from children to aged
- Wide choice of interests among them

Substitution products:
- There are good films and not so good
- Can be substitute by computers, cartoons, games and other activities
- Pirate copies

Toys

Rivalry:
- Big companies with famous names
- A lot of small and medium sized producers
- Different brands and, different opportunities
- Quite high customer favour to some brands

Barriers of entry:
- Moderate cost enter barrier
- Initial high license cost to produce famous brand

Suppliers:
- A lot of possible suppliers
- Can be substitute by others
- Quite cheap resourses
Buyers:
- International customers
- Throw the whole world
- Main auditory - children
- Depending on advertising and brand

Substitution products:
- Quite similar products from other companies
- Cannot be so easily substitute by, for example, computers

Theme parks

Rivalry:
- Big companies with famous names
- High concentration in some places
- Wide range of possible entertainments

Barriers of entry:
- High cost enter barrier
- Depending on good place and authority regulation
- Need to be well-known brand

Suppliers:
- A lot of possible suppliers
- Can be substitute by others
- High cost of service

Buyers:
- Mostly regional international customers
- Main target auditory - families
- Some preferances or loyality

Substitution products:
- Cannot be substitute
MiaoCheng - 13.10.2006, 01:07
Teema: The Walt Disney Company:The Entertainment King
rivalry:
]Disney competitors are more,beacuse every this kind of company possible be a
competitor,but disney has high competition advantage are creative mickey mouse and
Donald Duck in the earily year.There are many potential custom,especially to children.i
think competitor very diffcult to beyond it(in my opinion).

barriers of entry:
lower,not a problem for the company beacuse there has own brand,everybody knows this
company also.which includes Walt Disney World and Disneyland, owns the most popular
resorts in USA\Hongkong,Japan ect.

suppliers :
Disney has been leader in supplier diversity in the entertainment industry .supplier have
relationship between Disney company,the company can provide goods and services.but
need raw material.

buyer:
toy of buyer quite high,theme park low,and movie high

substitute products:
substitute quite high,nowday have many such kind of toy ,movie to subsitude.but it can not
threat Disney company.
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