Course Hero Logo

An outstanding threat occurs from strong competition

Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e.g., in search results, to enrich docs, and more. This preview shows page 34 - 35 out of 40 pages.

An outstanding threat occurs from strong competition from many other companies in relevantsegments. Some of these competitive forces to Disney in terms of theme parks are Six Flags, UniversalStudios, Knotts Berry Farm, Sea World, and Busch Gardens.In studio entertainment Disney facesopponents such as Time Warner Inc.Also, in media networks NBC Universal Media LCC and NewsCorporation are major competitors.Disney has to keep being aggressive in each of these markets in orderto stay as one of the top contenders.As well, the broadcasting services compete with other networks,cable companies and DVDs in order to compete for viewers and advertising dollars.Piracy is also a rapidly growing problem that leeches from profits. People now have more readilyavailable sources to download content off the Internet illegally and bypass sales. This is a dramatic threatbecause it cuts into revenue yet the product is being delivered by unauthorized methods.In addition, natural disasters pose a threat for Walt Disney, for example, the earthquake thatstruck Japan on March 11, 2011, affected the Tokyo Disneyland and Tokyo Disney Sea that were closedin order to evaluate the parks for any damage. Closing the parks causes a loss in potential revenue as wellas the costs in damage that Disney would have to pay in order to repair the parks to get them back intoworking form. (BusinessWeek, 2011) Because California is located right on the Pacific Rim of Fire, thereis a potential threat for an earthquake to occur in this location as well. This could affect many of thetheme parks that are located in California State.As Disney continues to globalize they will also need to pay close attention to laws and regulationswithin the new countries that they expand to.Depending on the countries, they may not have theopportunity to operate in ways they’ve gotten used to in the past.As expansion is carried out into themainland of China, close attention must be given to their laws.Disney will have to pay particularattention to safety regulations in particular as they expand abroad.If the Walt Disney Company can keepa close eye on the dangers that could possibly harm the company, they will be able to avoid any setbackthat should get in their way.As well, changes in consumer preferences can also cause a threat for Disney business in regardsto people losing interest in vacationing on Disney cruises or visiting Disney theme parks. People may shyaway from the Disney experience for reasons such as cost or disposable time that people may not haveand thus it is Disney’s job to constantly develop new products in order to maintain the customer’sattention and keep them buying Disney branded products. The recession can also affect consumerpreferences in regards to people not having as much disposable income to spend on vacationing or goingto the movies. People are being more contentious with their money and activities such as movies,purchasing Disney products or going to Disneyland may be put on the backburner until the economystarts to redeem itself.

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 40 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Spring
Professor
TurchikHakak
Tags
Business, Walt Disney Company

Newly uploaded documents

Show More

Newly uploaded documents

Show More

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture