An organization that utilizes the superior conditions

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unique in the sector and the rivals in a sector find it difficult to imitate to enjoy similar benefits. An organization that utilizes the superior conditions effectively is more profitable and obtain a large market share in an industry over the rivals.
BUSINESS STRATEGY – WALT DISNEY COMPANY 9Walt Disney Company uses differentiation strategy for competitive advantage. Accordingto Michael Porter, the differentiation strategy involves developing unique products in various segments (Dirisu, Iyiola, and Ibidunni, 2013). For instance, the company provides entertainment products to almost everyone around the globe particularly with a key emphasis on family. Disneyinvests a lot in research and development to enhance differentiation strategy and being ahead of customers’ expectation by providing products and services that give them a unique experience. Michael Porter also describes cost leadership as another generic strategy that positions anorganization competitively in the market or an industry (Tanwar, 2013). Disney can also apply itsresources to create an advantage of being a cost leader in the industries it operates. The cost leadership focuses on keeping costs to a minimum (Hilman and Kaliappen, 2014). To gain a competitive advantage, Disney requires delivering some specific set of customer benefits at considerably lower costs than the rivals in the market. The bundle of benefits should also be unique and the competitors cannot match the success of the strategy. Cost leadership would enable the company to offer relatively lower prices at a considerable profit and thus, attract more customers to the company’s products and services (Josiah and Nyagara, 2015). How Walt Disney can utilize its Resources in Cost Leadership Strategy Strong BrandA strong brand is considered to play a vital role in cutting the marketing costs (Ritson, 2011). Firms incur massive resources in marketing a brand with an objective of creating more awareness to as many customers as possible. However, a strong brand is widely known and requires less or no marketing and thus, Disney has a competitive advantage over the competitors in marketing the brand. The global recognition of the company’s brand reduces the marketing
BUSINESS STRATEGY – WALT DISNEY COMPANY 10cost of the company and consequently enhances the resources. Both young and the adult recognize the company’s brand thus, the company can utilize this advantage in cutting the marketing costs towards achieving the cost leadership objectives (Hilman and Kaliappen, 2014). LandLand ownership is an important asset to an organization due to expansion strategies (David, 2013). Disney has invested heavily in the land for expansion programs especially in the U.S and Europe (The Walt Disney Company, 2018). This a considerable advantage over the rivals in avoiding leases or rent costs. Disney can optimally use the land and reduce the cost of leasing or rent buildings or land for carrying out its operations. Therefore, the land is an essentialasset for the company in achieving the objectives of cost leadership strategy (Josiah and

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