summarize and combine papers

Table of Content

Executive Summary

Introduction

S-O Strategies (Strengths - Opportunities)

S-T Strategies (Strengths - Threats)

W-O Strategies (Weaknesses - Opportunities)

W-T Strategies (Weaknesses - Threats)

Conclusion

Appendix A: SWOT Analysis

Appendix B: TOWS Analysis

References

Introduction

As Disney’s entry into Mexico’s SVOD market, through their Disney+ and Hulu services, continues to develop, the company must now begin to create their competitive strategy. In order to do this, competitors within the current market space were analyzed for their advantages and disadvantages. Four companies, Netflix, Amazon, America Movil, and Blim, were all analyzed in order to develop the best path forward into the market. After the analysis, a competitive strategy, target market and price strategies were all developed in order to create the best opportunity for Disney’s first expansion into the global market.

External Opportunity and Threat

According to Parrot analytics, Mexico is one of the biggest Subscription Video On Demand (SOVD) countries. Mexico is expected to grow up to 10 % from 9.4 million in 2018 to 14 million in 2022, the estimated prediction is based on Future Source Consulting.

Walt Disney would be target audience include customer of all ages The Disney+ would partners with local cellular service provide the SVOD. In Mexico, most of the people not only like to watch their favorite shows but also like to listen to their programs while at work. The company should partner with local cellular company to provide both audio and VOD on the phone. They also take into consideration the quality of the streaming services.

One of the biggest threats to Disney+ would be competitors, their biggest competitor in Mexico would be Netflix and local SVOD provider Claro Video. Currently, Netflix in Mexico has more than 2 million subscribers. ( Roshan, 2017). In additional to that, the weakness would be the country’s lack of payment methods, there is lack of credit card holders.

There are also few threats when expanding the service in foreign country. In Mexico, there is a lack of the amount of credit card users, and payment methods. In addition, foreign currency exchange rates have been also an issue when there are businesses in different countries. Even though, Disney+ is facing competitors that are very well-established companies. The common weakness of all competitors have been their very small selection between Disney classics, new movies, Marvel movies, and Disney network television shows.

S-O Strategies- Recognition of the brand (Strengths - Opportunities)

Everyone grew up watching Disney classic movies and Cartoons. They have their grips on all generations. Disney Classic movies released between 1950’s to the mid 1970’s, including many popular titles such as Cinderella (1950), Jungle Book (1967), Peter Pan (1953), and The Many Adventures of Winnie the Pooh (1977). This generation is now showing these Disney classics to their children and grandchildren, continuing the popularity of these movies. Disney+’s advantage is their classic movies , and tv shows that are well known which other competitors need to advertise their products. Disney+ would also provide contents in both English and Spanish language.

The solution for this would be the price and quality of television shows and movies that are available through their service for children. Most streaming services focus primarily on the adults and are forgetting that there are millions of children out there too. Walt Disney target audience include customer of all ages and to provide them with more options for their children to watch, instead of the very limited selections other streaming services offer. Competitors currently only have a limited choice available for themselves and their children. They also take into consideration the quality of the streaming services.

Strengths - Threats Strategies- Competitors

The biggest threat is competition for Disney+ more companies are adding streaming services. Netflix and Amazon Prime allows customers access to its instant streaming platform, with thousands of movies and tv episodes. Disney+ is would need to offer the same or better content than its competitors to attract more subscribers. Also partner up with local popular celebrity to create new TV shows and movies.

Weaknesses - Opportunities Strategies

Local SVOD providers like Claro Video. Claro Video provide the contents with all Spanish program with an affordable rate. We believe Disney+ should provide affordable rate with bundle service pricing strategy in Mexico. The pricing will start at $4.99 for the basic package which allows subscribers access to streaming content in standard definition. The next package is the standard plan priced at $9.99 and it gives access to streaming content in HD quality, and on multiple screens. Lastly, the premium plan priced at $19.99 allows subscribers access to streaming content in Ultra HD or 4K streaming with four people being allowed to share the subscription. These packages will allow subscribers a free month of access.

In terms of their promotional strategy, Disney+ would offering a one-month trial free to new consumers, give the consumer to gain the trust and loyalty of new subscribers, and displaying confidence in their product through letting people experience it free of cost. Additionally, Disney+ should use platforms such as social media, and billboards to communicate their message to consumers. Targeting social media is crucial since Disney+ is an internet based service which means that a large percentage of potential consumers are already heavy internet users.

W-T Strategies (Weaknesses - Threats)

Lock payment method. Most of the payment method are paid by card. However, Mexico are lock of credit card holder and users. Would need to have a local store for payment collection. Also, there is another issue which are subscribers sharing accounts that are extremely opposed to any type of price increase. In the past, even the slightest price increases have led to cancelled subscriptions and outrage amongst subscribers (Killoran, 2011). International expansion has been costly and has yet to produce a return on the investment. The cost of content is increasing and competition for contracts is on the rise. These factors combined could potentially cause financial woes for the streaming giant.

Conclusion

Dinsey+ is a good example which uses internet to propagate its business. It continues to reinvent new methods to mitigate challenges posed by the unpredictable economy. Still, other competitors are trying to use the same business model. Disney+ has maintained the customer relation by their brand. This is an insight which the company has perfectly understood. To expand the SOVD in Mexico has great potential. For Disney+ to remain in leadership, Disney+ has to partner with local celebrity to produce more movies and TV shows.

Appendix A: SWOT Analysis

TOWS Matrix

Reference

Dalavagas, I. (2016, July 11). Disney: A Short SWOT Analysis. Retrieved from

http://www.valueline.com/Stocks/Highlights/Disney__A_Short_SWOT_Analysis.aspx#. V8NB-00QbIU

Gupta, G., & Mishra, R. P. (2016). A SWOT analysis of reliability centered maintenance

framework. Journal of Quality in Maintenance Engineering, 22(2), 130-145.

Ciotti, G. (2014, June 11). How Disney Creates Magical Experiences (and a 70% Return

Rate). Retrieved from https://www.helpscout.net/blog/disney-customer-experience/