Internal Disney Analysis

Disney is one of the most interesting companies in the industry. With so much experience in the industry and an abundance of resources, they are able to properly execute a diversified business strategy. They are an extremely innovative entertainment business, which is hard to come by. These factors have made their brand recognizable all over the world. This brand recognition makes for such a high-perceived value that they are able to charge a premium price. Disney’s most impressive and profitable internal strengths are its human resources and financial stability. The uniqueness and creativity of the employees are the business drivers that are rather difficult to imitate and can be seen as a rarity. The entertainment industry is such a competitive one these days that creative employees are at the highest demand. As for the financial aspect, the company has such great resources they are able to control most of the companies costs. All of these factors combined have given Disney the ability to have a sustainable competitive advantage.

Since tradeoffs occur within any business, Disney has some weaknesses, as well we must address. The first weakness is the high operating costs they have due to the enormity of the company and large staff. Another weakness the company faces is the limited target audience. The main focus of Disney is mothers and children, which is a very small target to go after in the grand scheme of things. The biggest weakness of the company is actually the size of the company. With 110,000 employees in 2000 and constant changes in upper-level management, keeping every section balanced can be a daunting task. The high turnover ratio of employees makes it difficult to maintain a consistency within the business. Constantly having to train new employees can cause a lack of synergy. These issues must be addressed and overcome in order to maintain a competitive advantage.

These strengths and weaknesses give Disney the opportunity to make...