Write a 500-750-word analysis of the significance of the three Matrices regarding their relevance for strategic planning. Describe the key information for each of the three matrices and how informatio

DISNEY SWOT MATRIX, BCG, IE MATRIX 14

CLC-Swot Matrix, BCG, and IE Matrix

MKT- 607-0500 Marketing Management

June 22, 2022

Swot Matrix, BCG, and IE Matrix

The SWOT matrix, the Boston Consulting Group (BCG) matrix, and the internal-external (IE) matrix are important methods to create a strategy-formulation for The Walt Disney Company.

Part I- Swot Matrix

	Strengths	Weaknesses

	1.Disney+ annual subscribers up from 73.3 million in 2020 to 118.1 million in 2021 (Iqbal, 2022). 2.DTC growth rate- 4.7 billion in Q1 2022, up 33.8% from same 3-month period in 2021 (Johnston, 2022). 3.Per Guest Spending at Disney Parks in Q2 2022 increased by 40% compared to 2019 (Niles, 2022). 4. Human Resource Management- won award for Most Admired HR for 2020 beating out Apple, Netflix, Toyota, and Amazon (Clarke, 2022). 5. Disney has a strong Creative Talent Development & inclusion team with sourcing over 350 targeted requests from producers & executives and hosting 150 networking events	1.Cybersecurity issues- theft of Disney’s Pirates of the Caribbean in 2017 and credential stuffing of Disney+ during launch (Bukzpan, 2017). 2.Seasonality of Major Revenue Streams- Parks, Resorts, and Cruises all have high seasons (summer) and low seasons (winter). Advertising revenue also peaks in the fall and lowers in the spring (Disney 2022 Annual Report). 3.Poor financial planning- In 2020, Disney shut down on their most profitable segment causing a 58% drop in operating income from its parks, experiences, and consumer products franchise (Tully,2020). 4. Excessive Goodwill, approximately 1/3 of Disney’s assets are in the form of Goodwill (David, 2020).

Opportunities

SO Strategies

WO Strategies

1.Theme and amusement parks are prepared to integrate new technologies into their customers’ experience.

2. Attention of new and current customers by the creation of new resorts and rides.

3. Shorter-theatrical release window times or skip theater entirely. Decreasing the number of days to air on streaming services

4. Increase localization of products and create more product diversification.

5. Strategic acquisitions like Fox, to enable the company to expand and offer products and services into different niche segments (Mendelson, 2020).

1.Use production gains to enhance technology, and continue with construction at Animal Kingdom to attract new and current customers (S2, O1, O2)

2. Create new ads as there’s an increase in Disney+ subscribers to increase customer awareness of product diversification, enriched food selections at theme parks and resorts, and shorter wait times for T.V. shows and movies on streaming services (S1, O3, O4).

1.Hire new marketing team and create special Winter Park and resort promotions (W4, O1)

2. Reduce the amount of Goodwill by one-half to continue with strategic acquisitions (W4, O5)

Threats

ST Strategies

WT Strategies

1.Compensating employees adequately while remaining profitable.

2. Global economic inflation, which causes less disposable income. Could impede recreation activities, resulting in decreasing profits for the entertainment industry.

3.Global internet usage has been the culprit of increased piracy. Piracy hinders corporate objections and can reduce the customers’ viewing content.

4. Loss of customers in U.S. amusement parks due to Covid as 47% of people said they would not attend if people were unvaccinated (Statista, 2021).

5. Worldwide decreased demand for cinema attendance. Consumers are gravitating toward at-home viewership of movies and TV shows.

1.Increase compensation and offer incentives to current and new theme park and resort employees (S4, S5, T1).

2. Transition one-third of movie releases from cinemas to streaming services (S1, T5)

1.Develop stronger cybersecurity and hire expert IT staff (W1, T3)

2. Improve profit margins by adding mobile ordering at parks and resorts (W3, T4)

Strength-opportunity (SO) Strategies:

1. Use production gains to enhance technology and continue with construction at Animal Kingdom to attract new and current customers (S2, O1, O2).

2. Create 5 new ads as there’s an increase in Disney+ subscribers to increase customer awareness of product diversification, enriched food selections at theme parks and resorts, and shorter wait times for T.V. shows and movies on streaming services (S1, O3, O4).

Strategies-Threats (ST) Strategies:

1. Increase compensation and offer incentives to current and new theme park and resort employees (S4, S5, T1).

2. Transition one-third of movie releases from cinemas to streaming services (S1, T5).

Weakness-Opportunity (WO) Strategies:

1. Hire a new marketing team and create special Winter Park and resort promotions (W4, O1)

2. Reduce the amount of Goodwill by one-half to continue with strategic acquisitions (W4, O5).

Weakness-Threats (WT) Strategies:

1.Develop stronger cybersecurity and hire 5 expert IT staff for each SBU (W1, T3).

2. Improve profit margins by adding mobile ordering at parks and resorts (W3, T4). By adding mobile ordering apps at parks and resorts, this will increase Disney’s profit margins and reduce the number of employees needed (Tatevosian, 2022).

Part II- BCG Matrix:

Summary of BCG Matrix:

This BCG was difficult due to Disney’s recent consolidation of their 4 SBU’s. Now with the company divided into two divisions, DMED (Disney Media and Entertainment Distribution) and DPEP (Disney Parks, Experiences and Products), some of the more telling segment data falls in between the cracks of the BCG analysis. For example, inside of the DMED division is Disney’s direct to consumer content segment (Disney+, ESPN+, Hulu, ect). Disney’s DTC segment has produced a revenue of ~16 billion but has netted an operating loss of ~1.6billion (Walt Disney Company, 2022). The DTC market is growing rapidly, but Disney has not yet been able to become profitable in this highly competitive growth industry. This segment offers a great opportunity for growth with a 18.1% CAGR but would still be a question mark for Disney because of their current operating loss of the segment (MRF, 2022).

Part III- IE Matrix

Summary of IE Matrix:

After the consolidation of Disney’s 4 SBU’s, the new reporting structure for DMED does not receive a revenue share from DPED related to consumer products business (Fiscal Year 2021 Annual Financial Report - the Walt Disney company, n.d.). The IE Matrix was used to analyze both the DMED and DPEP division with strong focus on the DMED division. While there is a difference in revenue between the DMED at $50,866 and the $DPEP at $16,552, the IFE AND EFE scores for both the divisions are the same. Disney scored high in both the matrices with the IFE at 3.51 and EFE at 3.03. The DMED and DPEP divisions falls between the cells I & V with most of its strength placed in region one. The IE matrix indicates that Disney should continue to grow and build while still holding and maintaining their current position in market penetration, market development and product development. In the result of Disney being placed in the region one quadrant, it demonstrates the success of Disney and how the organization can maintain a strong portfolio (David et. al, 2020).

References:

Bukszpan, D. (2017, May 21). Disney hacking shows why companies shouldn't succumb to digital blackmail, experts say. CNBC. Retrieved June 20, 2022, from https://www.cnbc.com/2017/05/21/disney-hacking-shows-why-companies-shouldnt-succumb-to-digital-blackmail-experts-say.html

CBS News. (2016, July 1). How too much “goodwill” can be bad for investors”. Retrieved June 19, 2022, from https://www.cbsnews.com/news/how-too-much-goodwill-can-be-bad-for-investors/

Clarke, E. (2022, February 2). Disney takes top spot as company most admired for HR. HR Executive. Retrieved June 14, 2022, from https://hrexecutive.com/disney-takes-top-spot-as-company-most-admired-for-hr/

David, F. R., David, F. R., & David, M. E. (2020). Strategic management concepts and cases: A competitive advantage approach (17th ed.). New York, NY: Pearson Education. ISBN-13: 9780135203699

Statista, (2021 October, 19). Public comfort with going to amusement parks in the U.S. 2021, by vaccination status. Retrieved June 16, 2022, from https://www-statista-com.lopes.idm.oclc.org/statistics/1245408/comfort-amusement-parks-vaccination-status-us/

The Walt Disney Company. (2022, February 9). The Walt Disney Company reports first quarter earnings for fiscal 2022. Retrieved June 19., 2022, https://thewaltdisneycompany.com/the-walt-disney-company-reports-first-quarter-earnings-for-fiscal-2022/

Market Research Future. (2022, May 12). Video streaming market projected to reach USD 972.31 billion by 2030, growing at an 18.1% CAGR - report by Market Research Future (MRFR). GlobeNewswire News Room. Retrieved June 20, 2022, from https://www.globenewswire.com/en/news-release/2022/05/12/2442244/0/en/Video-Streaming-Market-Projected-to-Reach-USD-972-31-Billion-by-2030-Growing-at-an-18-1-CAGR-Report-by-Market-Research-Future-MRFR.html

Tatevosian, P. (2022, March 2). Disney’s parks segment could be more profitable post-pandemic. Retrieved June 19, 2022, from https://www.fool.com/investing/2022/03/02/disney-parks-are-more-profitable/