Competitive Advantage: Disney Crisis Averted

 

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 impact on the company’s performance. By building very close relationships with its customers, constantly building and updating its brand awareness, and the sense of loyalty to the brand by its customers, Disney will continue to widen the span of the company’s continued growth and success. Disney has created a family dynamic with its customers through its wonderful marketing techniques. The pandemic caused an uproar around the world, and companies that did not obtain a temporary or sustained competitive advantage before the pandemic, may have faced several hardships including competitive disadvantages or cost disadvantages. Disney faced its own hardships (e.g., shutting down parks, furloughing and laying off employees, and navigating the economic turndown caused by the pandemic) but by having such a sustained competitive advantage, brand loyalty from customers, and diversifying its portfolio; Disney came out of the pandemic strong and are rebounding from such a hard time in the economy.