Let's Talk Disney: Opportunities of Environmental Threats and Opportunities and Industry Structure

 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 and beloved brands worldwide and they have sustained this brand power since 1923.

The company has also utilized a consolidation strategy, which is seen more in fragmented industries, and found new economies of scale through it's social welfare contributions and Disney +. When The Walt Disney Company began in 1923, it was an emerging industry. The emergence of customer needs is one of the reasons Walt Disney created Disney; his goal was to inspire the world through storytelling. The unique set of opportunities that the company faced being an emerging industry has lead to superior performance and significant profits. First-moving firms have the advantage of establishing the rules of the industry and the industry structure uniquely benefits them. 

The Walt Disney Company is considered a mature industry but by refining its products, increasing the quality of service, focusing on reducing manufacturing costs, and increasing quality through process innovations has greatly benefited the company. The company can also be described as a network industry by creating value to the extent that their products and services became the de facto standard. The company's "theme park" was like no other and was used as a pattern for all other amusement parks, and completely dominated the market. As the number of Disney fans increased, the value of its products and services increased; by becoming the de facto standard for other firms in the industry (mass media and entertainment), the company was able to set and increase prices and obtain economic profits. 

The Walt Disney Company has dealt with aggressive competition in the mass media and entertainment sector but by accepting change and conforming to the changes that occur over time has ensured everyone that The Walt Disney Company will remain a staple in its industry.