summarize and combine papers

Executive summary

The Walt Disney is a multinational company based in California whose main focus since its foundation was on the entertainment Industry. Since its foundation in 1923, the company has been able to produce a number of different products ranging from Television, broadcasting, radio and music to video games (Adrien-Luc Sanders, 2005). This goes a long way into showing just how much the company is deeply involved in the American Entertainment Industry with a total equity of $52.832 billion to back the claims. The company’s success can however be attributed to its competition strategy of buying off competitors shares thus making it a subsidiary of the company. It has managed along the process to acquire companies such as Fox, Marvel Studios, Pixar, Blue Sky studios, Marvel Entertainment and National Geographics Partners which have all been sources of revenue for the company.

However, the digital transition that has been happening rapidly around the world brought about by the vigorous scientific innovation rates have necessitated companies to move from analog to digital services which has brought another whole new dimension to the entertainment industry competition which oversaw some companies like Netflix emerge as giants in the provision of such services for example the streaming services.The company recently announced its plan to expand its services to the digital streaming services where it said that by the end of 2019 it could launch its own digital streaming network just like Netflix and Amazon Prime. This is a move that mainly been associated with the realization of the huge capital potential in the streaming business with studies predicting that the SVOD industry will increase its revenue by $150 million by the end of 2023. However, there has been a number of challenges that have been identified according to the feasibility studies of the industry.

The paper reviews the various classifications of elements arising from the feasibility studies and classified under Strengths, Weaknesses, Opportunities and the Threats. They are then analyzed under the TWOS analysis which provides a more clear explanation of the mitigating strategies that should be undertaken to reduce the effects of the risks that may avail themselves in the course of the market penetration. Some of the threat mitigation strategies that have been suggested include the use of the company’s brand recognition,use of the price competitiveness of the company and the huge portfolio that it has accumulated since its establishment.A mixture of application of these measures have been known to provide the necessary mitigating measures for the threats and als remedies for the weaknesses that may be identified from the feasibility studies.The studies from the TWOS analysis has also been able to establish some if the threats and weakness that are prevailing hence proper strategies need to be formulated in regards to those factors.

There however needs to be a proper plan in the implementation of such strategies so as to make them as effective as possible for example the provision if quality products that will be complemented by the brand name associated Disney.This normally speaks volumes about the company to the existing and the potential clients hence the reason as to why its supposed to be approached wit proper care.Some of the weaknesses and threats were however identified to be prevailing for example the issue on the operational geographic area whereby they were identified as bein far behind other companies like Netflix which had expanded its operational area to over 190 countriemeaning that the company had a long way to go to reach the customer bases as big as those already occupied by the competing countries.

Threats mitigation

One of the major threats that were identified was the poor connectivity infrastructure that was underdeveloped in Mexico which was essential in the access of the contents by the consumers. This would however be mitigated by the merging of the company by other companies like Hulu which had established infrastructure long before Disney had the plans laid and implemented which could take a while before the technological infrastructure is laid out. True to the word, in March 14 2019 Disney acquire Hulu where they signed a deal which allowed Disney to take full control over its operational functions (Siegel, 2019).

This is a very much on demand which puts Disney at a better position to start its own programming network where it will be featuring its own produced contents. This also means that the company will be at liberty to set up their own subscription prices because it will be having full control over its contents from the production process to the delivery to the clients. It is also worth noting that the above will have put Disney at a better position their contents to better affordable than the competitors which is a marketing strategy that can really work in a negative economy such as Mexico’s where the poverty line is so low thus affecting the customer base attracted by the price benefits of the subscriptions. This would attract a huge number of customers by offering affordable packages for different people.

The company is also better placed to provide culturally diverse content including those that rhyme with the native Mexican culture including content produced in the Spanish Language. The large portfolio of Disney includes a number of companies that were acquired including a number of well renowned studios that produce quality content. This means that the production of the consumer friendly content in regards to culture shouldn’t be a problem since the avenue was already set for the production of such content. An example of this is the production of Telonovela movies which are the most viewed genres in Mexico based on the studies from media stations that broadcast such content and other research studies. This would go a long way into making sure that the natives embrace the contents produced thus mitigating the risks that could be brought about from political influence about foreign cultures on the culture on the native Latin for example language use.

In regards to the impact of the already established companies in the market on the marketing strategies of Disney the company should use the brand recognition it has created over time to mitigate the risks. This is because the already established companies have always had the habit of segregating themselves and making themselves noticeable by making sure that they set themselves apart technologically and in general in the way thy conduct business. Since Disney is a brand on its own , the reputation created among the customer base should be able to set the pace for the company in regards to the customer perception of the brand as soon as it is advertised and the public is made aware of the presence of the company’s products and services its offering.

Opportunities Exploitation

Use the large and diverse portfolio to provide viewers with originally produced contents which fit into the culture

The Disney Company has been a huge content provider long before the introduction of the streaming and introduction of other companies like Netflix. This means that it has overtime built a very strong portfolio overtime in regard to the amount of originally produced contents ranging from cartoons and movies which could be used. It is worth noting that a number of well established companies like the Marvel Studios and YouTube production services like Maker studios in the production and delivery of its contents. This among others shows the ability of the company to produce a lot of originally produced contents. The huge portfolio could also be used to produce consumer friendly content.

This means that Mexico, being a Latin country mainly inhabits Spanish speaking citizens meaning that the companies that intend to tap into the market ought to put this into consideration otherwise they might end up realizing a lot of losses because the consumers cannot relate to the content mainly due to the language barriers that may be exhibited. The huge Disney portfolio indicates from all angles the ability of the company to produce original contents which is also supported by the huge company financial abilities. The huge portfolio also includes a number of sports and nature related contents which are normally produced under ESPN and National Geographics respectively.

This would go a long way into making sure that Disney is established as an original content provider meaning that the consumers would have to subscribe to the Disney streaming network to view the copyright protected content from there. Some of the packaging methods in provision of contents to subscribers have worked effectively for media companies such as DSTV by providing clients with options according to their financial capabilities thus proving its efficiency especially in the capitalist societies like Mexico where there is usually a distinction between various economic classes in regards to their lifestyle.

Prior expansion experience

In the past Disney has had some experience interms of business partnerships whereby it has acquired some companies as its expansion strategies something that can be witnessed from its huge portfolio of acquired companies it can boast of. This can be used in the case of Hulu whereby Disney will be better positioned to enter the digital streaming industry with some sort of support from the already established streaming infrastructure from Hulu. This from of market penetration will not only facilitate the faster market penetration but it will also go a long way into making sure that the subscribers are provided with cheap and affordable products.

This is because by the merger the company will be at liberty to use the platform to present its contents to the consumers which will all be at a very low cost as compared to other streaming networks like Netflix which have been identified as being a bit expensive that the other networks like Carlo. This means that everyone within the economy will be provided with an option in regards to the subscription packages towards the streaming network. This can be identified as a threat in the feasibility studies by other countries.

Since there are no stringent rules in regards to the streaming the company can exploit the issue by developing a wide variety of content and offer them at a cheap price as a market penetration strategy. The government rules and regulations might involve issues like the taxes and the content regulation by the governmental agencies. This might provide a proper avenue for the generation of revenue by the use of cheap prices because of the reduced cost of production and operation. This might be a very effective marketing tool that may enable the company establish grounds before the amendments in the constitution are made to regulate the content and taxes imposed on them.

The brand recognition would facilitate the exploitation of the SVOD industry by Disney by creating an avenue for the company to provide quality services upon market entry thus attracting even more customers. The huge name that Disney had created ever since the modern times when it used to produce cartoons only will come in handy because from that the company has been able to evolve into the production of a variety of high quality content that the world would really appreciate boasting of a number of originally produced contents from their own studios.

Recommendations

-Some of the recommendations is that the company should focus on building on the good reputation the company had managed to attain which made it to be identified as a brand.The useof this might make the market oenetration easier and more successful with just some few touches of quality and affordability.

-Create programs that promote the culture of the Latin Americans rather than dwelling on the American related contents so as to avoid the culture clash that may lead to most people despising the contents hence they should not seem to promote one culture over the other. This can be done by incorporating cultural elements like the Spanish language which and subtitles for the already produced contents so as to enable the clients relate better with the contents being presented on the subscription networks.

-invest in the production of locally produced content like other giant streaming companies like Netflix and the Amazon so as to be able to control the market prices of products and services they offer more effectively. This is where lby they will be able to set the prices of whatever they produce to some more affordable rates so as to increase its customer base by making their prices more affordable through packages scheme across the variety of products it produces.

-Apart from the purchase of hulu the company should also work towards the improvement on their connectivity to the internet by trying to increase their geographical area of operation .his will go a long way into making sure that they rake in more money from their products fans across other countries thus increasing their revenue.

Conclusion

In conclusion, many of the factors that have been discussed in the study have all included strategies that if implemented properly could see increased productivity in the company. This is because through the exploitation of the various strengths that the company has the company could oversee the mitigation of the various risks that the company might face on entry in the streaming industry. One of the main strong points when it comes to competition has been the brand name it has created overtime which has seen it ranked the most powerful brand in 2016 (Dill, 2016). This has been attributed a combination of marketing strategies like for example the use of the mouse , logo and symbols that have overtime come to be identified with the company thus creating some distinctive imagery in the minds of the consumers. The competitive edge according to the TWOS analysis could also provide the exploitation of opportunities as well as mitigation of a number of threats that may be posed in the marketing process.

This will be facilitated by the full indepence of the company in terms of operations that could enable the company exploit the market prices to their advantages without being affected in regards to the annual turnover of the company. This is because it has the capability evidenced from its huge portfolio to produce its own high quality products and at the same time present them to the consumers using their own subscription platforms like the recently acquired Hulu (Beattie 2019). This could also enable the company to exploit the huge Latin American Market. The general experience can also be viewed as a major contributor that can be used as a major strength by Disney. This is because the various segments under which Disney operates provides a vast experience in the industry thus it has had some huge skills acquisition in the process solely based on the experience.

This will facilitate the various merging that will be there in the company with others and the provision of services through other platforms for example YouTube that are not owned by the company. All of the above will be targeting the huge potential customer base that is perceived to be in Latin America and which is estimated to have some viable growth rate. The main target market will be the sports enthusiasts and the kids with an estimated population of the kids being 30% that those of below 15 years as of 2010. The company has had a huge collection of originally produced contents that would suit both generations i.e. the old and the new and those of different interests in regards to programming. It is also worth noting that the recent acquisition of the company Hulu by Disney has shaken other media streaming companies because of the strengths that the Disney company can boast of thus increasing the chances if providing a stiff competition to the. Previously the company use to do productions only but as asingle segment but the recent interest in streaming has made the company see the potential from the success of the YouTube productions company which acts as a pilot evaluatin for the success of the steaming project in mexico.

The huge market is also an attraction for the migration because a lot of customers could be willing to offer money for the contents the company could be offering.This is mainly because previously the company used other platforms to present their programmes to peopefor example Netflix which were well received and purchased a claim that can be backed by statistical data of sales recorded on contents produced by the company for example star watkrs that raked in 2Bilion in sales.

References

Adrien-Luc Sanders. (2005, February 7). A Quick History of Disney, From Mickey Mouse to Moana. Retrieved from https://www.lifewire.com/the-walt-disney-company-140911

Andrew Beattie. (2011, September 19). Walt Disney: How Entertainment Became an Empire. Retrieved from https://www.investopedia.com/articles/financial-theory/11/walt-disney-entertainment-to-empire.asp

Dill, K. (2016, February 18). Disney Tops Global Ranking Of The Most Powerful Brands In 2016. Retrieved from https://www.forbes.com/sites/kathryndill/2016/02/18/disney-tops-global-ranking-of-the-most-powerful-brands-in-2016/#30fbc4f23ecd

Rachel Siegel. (2019, May 14). Disney takes over full control of Hulu. Retrieved from https://www.washingtonpost.com/business/2019/05/14/disney-takes-over-full-control-hulu/?utm_term=.3ac2e2142915

TWOS ANALYSIS