The viewer may enjoy the star wars series disney
■ Walt Disney Studios ─ includes animated films, music recording
■ Disney Media Networks ─ Includes broadcast television networks
They have a positive Brand reputation. Walt Disney is in industry from past 90 years which is widely recognized all over the globe, to build this type of brand reputation the major contributors are Disney channel and Walt Disney movies. Disney are known as “entertainment provider”, and they have been ranked 13th in terms of most valuable in 2012
They are Competent in acquisitions. Another strength of the company is that they are very competent in acquiring the companies so that they can get an edge over the competition they have acquired marvel in 2009, Pixar animation studios in 2009 and another one was Lucasfilm in 2012. These successful acquisitions have immensely contributed towards the revenue generation and expansion. These is strengthened their position in the market.
Fewer opportunities for significant growth specially through acquisitions. Walt Disney is known as the largest entertainment provider of in the world, because of their smart acquisition strategy to tackle the competition in the market, which is one of the weakness of the company as the last Disney acquisition was approved by the federal trade commission , it means that now the acquisition of Disney is also concern for the government, because of their significant market concentration, which can limit the opportunities as they can become an subject of anti-trust laws.
Opportunities
Increasing piracy. Another threat to Disney which they are facing is increasing piracy. Advancement if technology has led to copying and have made transmission easier. Increasing number of internet users as created lots of risk for Disney as increase in the privacy has direct impact on the Disney income as only few people like to go a watch a movie.
Strong growth in online TV and online movie renting. Another threat which is faced by the Disney is that growth of online tv and the business of online movie renting can have a major impact on the Disney. Subscription for Tv streaming and increase in movie rental websites have a major impact on the Disney.
The Walt Disney Company has several existing internal strengths and weaknesses that will contribute to the launch, public perception, and, ultimately, success of Disney+. A wellknown mantra in the study of branding is: “In a world cluttered with a growing number of entertainment choices, people look for the quality brands they know and love” (Bennett & Schweitzer, 2014, p. 24). Disney has made its mark on society by its long-standing and successful practice of creating customers, beginning in a person’s childhood and continuing through a person’s lifetime (Bennett & Schweitzer, 2014). Further, Disney has not only created many progressive animation technologies throughout the company’s history that have advanced the animation industry but has also become the defining benchmark for the branding of animation itself (Hoppenstand, 2013). In other words, Disney has set the standard for not only filmmaking and animation, but also for branding and consumer desire. A study of the impact of the Walt Disney Company’s prominence in a community found that Disney films are considered a source of authority in teaching roles and values just as much as schools, churches, and the family (Bazzini, Curtin, Joslin, Regan & Martz, 2010). The influence of the Disney brand upon all sorts of content receivers (children, parents, adults, other animation companies and competitive experience-producing companies) cannot be overstated, nor can it be ignored. One of the major factors that has contributed to Disney’s continuing success is the company’s extremely loyal customer base. When consumers purchase a Disney product or experience, they expect that purchase to be enjoyable and magical, which will encourage consumers to come back to Disney to make more purchases in the future (Westre, 2016). Another asset to the company’s overwhelming success is the existing synergistic marketing strategy, in which purchasing one Disney product/experience drives consumers to purchase another product/experience. For example, if a viewer sees a Disney princess movie in theaters that they enjoy, they may visit The Disney Store to purchase a plush model of the princess from the movie. While in The Disney Store, the consumer may see a video playing advertising the chance to meet the princess in a Disney park, which could drive them to purchase a park ticket and resort stay. While in the park, the visitor may enjoy meeting the princess so much that they purchase more princess merchandise, and so on. Because of this fluid and successful strategy, integrating Disney+ into the marketing mix will be almost seamless. Park visitors may enjoy their park experience so much that they want more Disney magic in their everyday lives, which could drive them to purchase Disney+. The viewer may enjoy the Star Wars series on Disney+, which may lead to them purchasing Star Wars merchandise, etc. (Toth, n.d.). Disney also has a strong positive brand image, which means that consumers will not only be attracted to an exciting new movie or product but will also be attracted to Disney itself (Francoeur, 2004). Disney is known as the primary leader in the family entertainment industry (Robbins, 2014). Because of the company’s family-friendly reputation, Disney plays a major role in the entertainment market for children (Francoeur, 2004). The company aims to attract children at a young age, introducing children to the Disney magic through movies, television, and product offerings (Winsor, 2015). This will ensure that young children continue to be Disney consumers even as they age. Alternatively, part of Disney’s success is that the company also appeals to adults, or “children at heart” in its product offerings and theme park visits, with the use of nostalgia for one’s childhood (Griffin, 2017). Adults continue to be drawn to the company because “Disney holds a strategic grasp on key cultural objects, including the characters we all know and love, and the means by which to upkeep and promote them” (Robbins, 2014, p. 14). Disney also has the advantage of an extremely diversified portfolio, which means that there are endless opportunities for the company to sell to various markets (Winsor, 2015). Despite Disney’s expert portfolio diversification, “the theatrical release of animated features continues to be the most important entry point to the company’s magic kingdom” (Krämer, 2000, p. 45). Although Disney owns content which has contributed to years of nostalgia-producing history, the company is also continuously innovative. “The culture of Disney could be seen as one that is always looking forward to the future… they are constantly trying to find ways to develop the most creative, innovative, and profitable entertainment experiences and products in the world” (Zink, 2014, p. 7). Further, the company is in a favorable position to continue increasing brand equity (Westre, 2016). The external factors surrounding the Walt Disney Company at the time of the announcement of Disney+ are also important to consider. First, Disney+ has several competitors. Some competitors are established, such as the previously discussed Netflix and Amazon, while some are still infantile, such as the streaming services expected to come from Walmart and Apple (Lowe, 2018). Disney also currently owns the ESPN streaming platform which, although not a direct competitor to Disney+ based on the difference in each platform’s content, should still be considered a competitor according to the thought that consumers can only choose the streaming platforms that are most important to them. While the Walt Disney Company has stated that Disney+ is not expected to “kill” Netflix, it has been announced that Disney will stop distributing most of its content to Netflix when the existing contract expires in 2019 (Chmielewski, 2018). Upon the release of this news, Netflix stock shares dropped 4% instantly (Wang, 2018). Disney will leave the Marvel television series shows on Netflix “for now”, as these shows are darker and more violent and may not be a great fit for Disney+ (Gartenberg, 2018). When considering Hulu, in which Disney will have a 60% stake upon the acquisition of 21st Century Fox, the company is still “very much in support” of growing the existing adult-focused platform (Chmielewski, 2018). The Walt Disney Company is weakening its competition in the streaming market simply by creating a destination for all Disney-owned content. While the Netflix share drop is a prime example of the power Disney wields in the market, another is the company’s efforts to reacquire the rights to the early Star Wars films that were previously sold to Turner Broadcasting (Bonomolo, 2018). Disney envisions its streaming platform to be the sole destination for family-friendly Disney content which, in essence, is most family-friendly content in existence.