EFE Matrix for Walt Disney Company

EFE Matrix for Walt Disney Company

Walt Disney is a multinational firm in America, which specializes in the mass media industry. The company was established in 1923 by Walt and Roy Disney. Its headquarters are in the United States, California (Burbank). The firm is executed and owned by Bob Lger, the Chief Executive Officer and Chairman. Walt Disney Company provides services and products across the globe. The products manufactured by the firm include theme parks, movies, internet, and radio. Walt Disney is among the most recognized and best Hollywood studios. The services that the company provides to its clients are licensed.

Walt Disney EFE Matrix

External Strategic Variable Rating Weight Weighted Score Comments
OPPORTUNITIES
Appropriate and proper stock or inventory management. 2 0.07 0.14 The company’s cost of operation can be reduced through ensuring appropriate and proper stock or management of inventory. Thus, profitability can be improved.
Opportunity to grow and expand 4 0.13 0.52 The firm has the opportunity to grow and expand its services and products by moving it into diverse segments in the relevant markets.
The market demand for the Disney land is rising. 2 0.14 0.28 The market demand for the land of Disney is rising. In this case, the growth of the park in Hong Kong is the grand motivation for the firm.
Growth of market in the less developed and under developed countries is a large opportunity 3 0.03 0.09 The market growth by Walt Disney in the less developed and under developed countries is a large opportunity. In addition, the creation of websites can enhance the success of Walt Disney Company.
Less costly alternative toys should be developed. 1 0.04 0.04 Less costly alternative toys should be developed by Walt Disney in order to gain the attention of the customers in the market, as well as, engage the characteristics of the regional and national appeals.
Gaining more interest of customers. 1 0.08 0.08 In the growth of the park with diverse theme variations that make more appealing in order to gain people’s interest.
Improve the rate of bench mark in accordance with scenarios in the market. 1 0.05 0.05 The firm can improve the practices of management through the improvement of bench mark rate in accordance with the market scenarios.
THREATS 0
High competition level. 4 0.05 0.2 There is a high level of competition for Walt Disney in the mass media industry, as well as, in the home markets and the global markets. In this case, therefore, there are difficulties for the workers to maintain the position of the company in the market.
Security problems 4 0.05 0.2 Security threats include terrorism.
High demand level of innovation and the firm has to keep up with it. 1 0.2 0.2 The increased demand from the market on innovations of products is hard to maintain because of regulations involved in inventions.
Ethnic and Social Groups 3 0.1 0.3 Ethnic and social groups are a threat for Walt Disney Company because they act as an obstacle in the company’s success.
The changing preferences of customers. 1 0.08 0.08 The preferences and aspects that have been changing especially in the younger persons are a big issue for Walt Disney Company.
Rising labor cost. 2 0.06 0.12 The rise in the cost of labor and wages lowers the company’s growth and employee’s retention is an issue that can affect the success of Walt Disney Company.
Unprofitability, acquisitions, and brand consistency. 2 0.02 0.04 The case of unprofitability, acquisitions, and brand consistency, is a major threat for that can diminish the company’s brand consistency, expansion.
Total Weighted Score 1 2.34

 

As per the above computations, it can be argued that that the Total Weighted Score of Walt Disney Company is 2.34, which indicates that the firm has somehow been successful in using its opportunities and keeping the threats around it at minimal levels.

 

References

Gingerich, T. (2012, December 4). Walt Disney – Strategy Analysis. Scribd. Retrieved February 13, 2014, from http://www.scribd.com/doc/63192944/Walt-Disney-Strategy-Analysis

Grant, R. M. (2010). Contemporary strategy analysis and cases: Text & cases. Hoboken, N.J: Wiley.

Griffin, S. (2000). Tinker Belles and evil queens: The Walt Disney Company from the inside out. New York, NY [u.a.: New York Univ. Press.

Jurevicius, O. (2012, January 2). SWOT analysis of Walt Disney. Walt Disney SWOT analysis 2013. Retrieved February 12, 2014, from http://www.strategicmanagementinsight.com/swot-analyses/walt-disney-swot-analysis.html

Unruh, C. (2012, December 14). Strategic Management: Walt Disney Case Study. Strategic Management: Walt Disney Case Study. Retrieved February 13, 2014, from http://www.slideshare.net/callieunruh/strategic-management-walt-disney-case-study

Walt Disney. (2011, August 26). Walt Disney – Strategy Analysis. Scribd. Retrieved February 13, 2014, from http://www.scribd.com/doc/63192944/Walt-Disney-Strategy-Analysis

 

 

 

 

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