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Let's Talk Disney: Cost Leadership; Sources of Cost Advantages; Cost Leadership and Sustained Competitive Advantage

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  The Walt Disney Company is such a popular and powerful brand, offering unique products that can only be obtained by purchasing directly from the supplier or an authorized merchandiser, has greatly affected the company's sustained competitive advantage in a good way. The Walt Disney Company only offers its popular and classic film and show catalog for streaming only on Disney +. It also gives exclusive access to Disney's feature films, HULU, ESPN+, and The National Geographic, all by signing up and paying for the subscription. Disney + also offers access to the entire Marvel, Pixar, and Star Wars catalog with subscription only available through Disney+. This gives the company a great cost advantage over its competitors (Amazon, Netflix, and Comcast) because their competitors cannot offer the services that Disney offers. The Walt Disney Company also has a cost advantage over smaller firms due to the size of the company, due to the significant economies of scale in its manufactu...
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Let's Talk Disney: Management; Leadership: and Resources, Capabilities, and Competencies

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The Walt Disney Company's institutional leaders have made sure that the company sustains its competitive advantage by reinvigorating the company's brand and defining the company's mission. The company's former CEO, Bob Iger, during his  year tenure as CEO increased market capitalization five times over from 48 billion to 257 billion. He also led several acquisitions such as: Pixar (2006), Marvel Entertainment (2009), LucasFilm (2012), and entertainment assets of 21st Century Fox (2019). Bob Iger also expanded the company's theme parks to East Asia, Hong Kong, and Shanghai; expanding its presence in international markets. The Walt Disney Company has an executive leader for each business segment.  This talented group of institutional leaders have organized and structured the company in a way that its vision of entertaining and inspiring people around the world through storytelling. The Walt Disney Company's financial capital, physical capital, human capital, and o...
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Let's Talk Disney: Opportunities of Environmental Threats and Opportunities and Industry Structure

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 The Walt Disney Company is considered to be a cost leader in the global entertainment, mass media, and theme park industries. The company has also diversified its operations with its competitive strategy and intensive growth strategies. The Walt Disney Company has reduced the threat of rivalry by taking a consumer's thoughts away from price and redirecting that attention towards the value of memories and the value of the experience. I took my mom and three daughters to Disney in 2013 and even though it was expensive, we gained memories and an experience that we will never forget. I also took them to Disney's competitor, Universal Studios (Comcast) Halloween Horror Nights in 2019. The experience was slightly different from Disney. The difference in experience boils down to product differentiation. The strategies that The Walt Disney Company uses to reduce the threat of rivalry can also be used to reduce the threat of substitutes. The Walt Disney Company has one of the strongest...
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Let's Talk Disney: Industry Structure, Firm Conduct, and Performance

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  Before we begin, I think we should discuss The Walt Disney Company's top three competitors. I think The Walt Disney Company's top three competitors are Comcast (CMCSA), Time Warner (TWX), and Fox (FOX). Comcast, in my opinion, is The Walt Disney Company's number one competitor. Both companies operate with various sources of revenue, and both compete in the cable network, broadcast, and theme park industries. Comcast also introduces itself to the digital world of streaming with Peacock and Disney entered the world of streaming with Disney+.  The Walt Disney Company operates in a less competitive industry enabling the company to obtain competitive advantage. The Walt Disney Company falls under the oligopoly umbrella due to a small number of large competing firms in the industry, helping the firms earn significant economic profits. Costly entry and exit restrict smaller firms, potential entrants, from being able to compete and exist amongst incumbent firms in that industry. ...
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Competitive Advantage: Disney Crisis Averted

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  Although Disney’s coined phrases and taglines (e.g., “To Make People Happy”, “The Happiest Place on Earth; Where Dreams Come True”, and “Walt Disney World the Most Magical Place on Earth”) have changed throughout the company’s existence, one thing that has not changed is the company’s sustained competitive advantage over its competition. Disney has diversified its portfolio/market in such a way that it now has much more competition than it had in the past. Not only is it leading the competition in the theme park industry, but it also competes in the sports market, streaming market, and cable TV markets. Most of Disney’s competitive advantage comes from their customers knowing a great deal about Disney’s products and anything affiliated with Disney. Another competitive advantage for Disney is their extensive research and development on ways to continue to maintain their sustained competitive advantage.   Disney’s intangible resources and capabilities has had a significant...
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