Corporate Strategy Analysis Based On Current Environment Taking Disney .

Journal of Economics, Business and Management, Vol. 10, No. 2, April 2022strategic planning and implementation of strategicmanagement. However, the strategic plan alone is far frombeing concrete plans. Strategies and a series of measuresshould be formulated to design practical routes in order toensure the realization of strategies. At the same time, sincethe internal and external environment of the enterprise wouldconstantly change, strategies do not stay invariably. Rather,strategic management including corresponding modificationsof strategies should be proactively implemented in responseto internal and external changes and to keep a dynamicbalance with the internal and external environment. Duringthe strategy implementation stage, shortcomings of the initialstrategic design get exposed gradually, such as defects orthoughtlessness requiring improvement of the currentstrategy.The external and internal analysis must be carried outwhen the mission, vision and purpose of the enterprise areclarified. Enterprise environments include the external andinternal environment. External environment contains macroenvironment (Political, economic, socio-cultural, andtechnological factors, also known as PEST Analysis) andindustrial environment (potential entrants, existingcompetitors, substitute competitors, buyers and suppliers,also known as Porter's Five Forces Model). Enterprises canonly adapt to but never change the environment. The internalenvironment includes resource bases, core capabilities andvalue chains. Through comprehensive external and internalanalysis, opportunities, edges, as well as threats andshortcomings are identified. Therefore, SWOT Analysis, anew strategic tool, is employed. After the completion ofexternal and internal analysis, enterprises ought to makestrategic choices that are classified into two types:business-level strategies and enterprise-level strategies.Business-level strategies are categorized as low-coststrategies, differentiation strategies and centralized strategies,while at the enterprise level, strategies are divided into fourtypes: integration, diversification, alliance, merger andacquisition. Enterprise strategies are required to change withthe internal and external environment. In some cases,assessment, regulation and control must be implemented onstrategies made in the early stage.Strategic management, needed after strategy formulation,is defined in the generalized and narrow sense. Strategicmanagement, in the generalized sense, includes strategicplanning, while in the narrow sense, it refers to the inspection,modification, and final strategic audit of strategic planningduring the implementation process.There exist in-depth studies conducted by scholars fromChina and overseas on strategic management theories.However, under the new context of the COVID-19 pandemic,little work has been devoted to researching strategicmanagement theories of enterprises. In addition, currently,most studies on enterprise strategies target manufacturingenterprises, traditional enterprises or listed enterprises,however strategic studies on industries like theme parks areinsufficient. Therefore, Disney, taken as the research object,is studied in this work on its transition path during thepandemic to help the enterprise explore feasible plans inimproving its strategic management through a comparison ofits recently-revealed annual reports and previous ones.141II. DATA AND METHODA. DataThe Walt Disney Company is a multinational mediaconglomerate headquartered in California. In 1923, the twoDisney brothers founded Disney Brothers Studio and beganproducing a series of cartoons. In 1928, with sound filmsgaining popularity, Disney innovated the Steamboat Willie—— the world's first cartoon with sound. Disney startedthinking about colour cartoons in 1931, and in 1932, itreleased the world's first colour cartoon, Flowers and Trees.Disney's first full-length animated film, Snow White and theSeven Barost, was produced at the Carthay Circle Theater inHollywood in 1937. Since then, Disney has continuouslyproduced various animated films, especially after the end ofWorld War II [3]. Disney's animation into the golden periodof vigorous development, for example, Pinocchio, Dumbo,Cinderella, Song of the South, Peter Pan, and the Jungle Book.After repeated successes, Disney expanded its businesses. In1955, Disneyland was built and officially opened inCalifornia and began planning to build Disney World inFlorida. According to data, the establishment of Disneylandbrought stable long-term profits to the Disney Company. In1966, one of its founders, Walt Disney, died of illness. For aperiod of time after this, Disney lagged behind due to poormanagement and poor quality of its productions.In 1987, Michael Eisner was appointed as CEO of Disney,and he began to reform the business from all aspects andvarious fields. First, he started to revitalize Disney's TVprograms and animated movies. For example, he producedmany popular new programs and movies and sold Disney'sprograms to TV stations. In terms of parks and resorts, Eisnerexpanded and innovated Disney theme parks to improve theirprofitability by establishing theme parks in Paris in 1992 andHong Kong in 1999. In the retail sector, Eisner's concept of“retail as entertainment” leverages the synergistic advantagesof all divisions and has brought substantial profits to thecompany. In 1995, Disney acquired CapCities ABC,including TV and radio networks and stations, Cable, sportschannel ESPN, newspapers and periodicals, which madeDisney became the largest media and entertainment companyin the United States [3].However, at the end of the 20th century, due to the strictmanagement style of the operator and a number of otherinternal and external factors, Disney's financial situationdeteriorated and Eisner left. After that, in 2005, Rogert A Igerbecame the CEO of the Walt Disney Company. He restoredorder to the company by delegating power. Iger also definedDisney's new strategy of building multi-billion dollarfranchises, and he acquired Pixar (2006), Marvel (2009),Lucasfilm (2012) and 21st Century Fox (2019), which haveimplemented this strategic vision. The strategy has led tosteady growth in Disney's revenue [4].B. MethodSWOT analysis is based on internal and externalcompetitive environments and conditions which list all kindsof major internal strengths and weaknesses as well as externalopportunities and threats closely related to the researchobjective through investigation and analysis. According tothe matrix arrangement, with the idea of system analysis,

Journal of Economics, Business and Management, Vol. 10, No. 2, April 2022various factors are matched up to be analyzed, from which aseries of corresponding conclusions are drawn, which areoften of a decision-making nature [5].SWOT analysis method has the advantages ofcomprehensiveness, systematicness and accuracy, allowingusers to conduct accurate analysis in accordance with theresearch results and make corresponding developmentstrategic plans and decisions [6]. S is for strengths, W isweaknesses, O is opportunities, and T is threats in theacronym SWOT. Generally, SWOT can be divided into twoparts: the first part is SW, which is mainly used to analyzeinternal conditions; the second part, OT, is mainly used toanalyze external conditions.This method can be used to find out favorable and positivefactors as well as harmful and negative factors, and discoverexisting problems so as to find solutions and provide futuredevelopment direction.2. Tencent's experience inbuilding and promotingvideo platforms andDisney's top-notch filmand television productswill enable them to worktogether to create theworld's leading videoplatform.As the largest internet company in mainland China,Tencent's business mainly involves social, finance, andinformation platforms and tools. Its subsidiaries specialize invarious global internet-related services and products,entertainment, artificial intelligence, and technology. Interms of human resources, Tencent also has a top researchand development team. According to Napitupulu, B. E. P.“Tencent’s R&D team always research what the essentialservice that people need and they could provide to themarket” [8]. Tencent owns Tencent QQ and WeChat, themost popular social software in mainland China, and TencentGames, the largest online game community. Based on the twocompanies' leading positions in the entertainment and mediafields in their respective main markets, we hope thiscooperation brings considerable gains and influence.Based on the extremely high popularity of WeChat inChina and a large number of active users, Shanghai Disneycan direct consumers to its mini-programs by placingadvertisements on the WeChat Moments page. ShanghaiDisney has launched its mini-program, Its functions includebuying tickets and annual cards, hotel reservations, andunique restaurant ordering services. However, based on thepartnership between Disney and Tencent and WeChat'sstrong ability to attract users, Disney can add more functionsto the miniprogram to enhance tourists' experience. Forexample, they can jointly develop online purchase channelsfor Disney toys with WeChat Mall to serve customers whoneed to purchase toys but cannot visit authorized stores.Shanghai Disney can also cooperate with Tencent Maps tolaunch maps and navigation of the amusement park in themini-program to enhance the tourist experience. At the sametime, by connecting the networking technology and the parkvisitor flow monitoring system, the current queuing time ofpopular facility can be calculated in actual time, and theinformation can be marked on the online map to improveusers' experience. The online streaming platform Disney can be built around the film and television content of Disney'smajor entertainment industry companies. It is expected tocover 64 countries and regions worldwide in 2022, but thisdoes not include China's mainland area. Disney does not havean exclusive and unified broadcasting platform in mainlandChina, which makes it impossible for Disney to play all theirfilms, such as “Avengers: What If” on multiple platforms inmainland China, therefore it has to give up this market.However, Tencent Video is a playback platform owned byTencent, which has purchased a large number of videocopyrights and witnessed speedy growth. If Disney can reacha partnership with Tencent, Disney can broadcast theirexclusive series on Tencent Video to expand the market andcustomer base, and Tencent can also use Disney'shigh-quality films to bring attention and subscription revenueto its video platform.III. RESULTS AND DISCUSSIONA. StrengthsThe Walt Disney Pictures Group is one of the largest andmost famous film production companies in the United Statestoday. Disney’s main strength is its financial solidity anddomestic resources refer to human resources. Disney has theworld's leading artists, directors and writers. According to DeGroote, P. “Employees in the Disney studios appear to bevery innovative and in recent years they have created severalproductions. A corporation without new inspirations has atrouble in today's aggressive business environment. Thelow-cost company’s strategy is an advantage for them. Thecompany can manage costs, and still make quality goods andservices” [7].Disney’s brand power can also make consumers recognizetheir logo immediately, and the cooperation between Disneyand Tencent will only make them more robust in theinternational market competition.In order to analyze the current situation of the DisneyGroup regarding its strengths and weaknesses and theopportunities and threats that it may face in the futuredevelopment process, we chose to use the SWOT model forthe analysis. Table I lists the main points and conclusionsfrom the analysis, and the specific analysis process will beshown in the content of the following part.TABLE I: THE SWOT ANALYSIS OF DISNEYStrength:1. One of the largest and mostfamous film productioncompanies in the UnitedStates2. Financial solidity anddomestic resourcesweaknesses:1. High Attrition Rate2. Poor financial planning3. Vulnerable tocompetitors due to alack of marketing andpromotionOpportunities1. By combining Disney'sbrand value and capitalwith Tencent's marketpenetration andtechnology in China tocreate a uniqueamusement parkexperience.Threats1. Disney has no controlover the cost of its ownindustry.2. Disney's globalproperties areindependently ownedand operated, whichhas resulted in theirisolation in differentmarket environments.3. Disney has difficultyinnovating, anddeveloping technologyand distributionchannels.142

Journal of Economics, Business and Management, Vol. 10, No. 2, April 2022B. WeaknessesWalt Disney Company has the weakness of high attritionrate — where it has spent huge amounts of money on stafftraining and grooming. For example, according to MargotRoosevelt, an economic news reporter who once worked forthe Los Angeles Times, argued that “it would pay outone-time, 1,000 cash bonuses to 125,000 full- and part-timenon-executive employees. It will also spend 50 million thisyear, and 25 million going forward, to subsidize training andeducation for 88,000 hourly workers” [9]. Its high attritionrate has remained unchanged. The company also has poorfinancial planning, which results in more losses. Disneycould be exposed to competitors due to a lack of marketingand promotion. They only use advertisements when they arepromoting a new film or gadget. Aside from that, the majorityof marketing is done visually via cross-promotion.Due to the cultural difference in which the United Stateshas a totally different culture compared with China, TencentCompany has difficulty cooperating with Walt DisneyCompany. Although the Disney company has built strongnetworks and secured partnerships to develop distributorsand dealers across the US, they are unaware of the traditionalculture of Chinese companies especially Tencent. This islikely to affect the cooperation between the two companies.For example, the solution to expand Disney’s market share inChina is that the Disney company should cooperate withTencent mobile app King of Glory. The existing King ofGlory character skins are based on Chinese traditionalcharacters like Lady Sun, Wang Zhaojun, Zhao Yun etc. Thedifficulty for two companies is to create new character skinsbased on Disney characters but does not conflict with thegame style.countries. Due to the many ongoing issues with othercountries, most of the administration is trying to pull out ofinternational contracts. It includes many manufacturers” [10].Secondly, Disney Company is facing an isolation threat.Disney Company will be under pressure to achieve sufficientprofits because some of the manufacturers are in foreigncountries when the isolation phrase is lasting. Moreover,Disney Company is not specified with technology innovation.As technology skills improve year by year, people choose towatch TV shows on electronic devices. What Disney lacksfor developing is the unique application for people tosubscribe to the Disney content.IV. CONCLUSIONThis paper uses the SWOT analysis method to analyze thefeasibility of cooperation between Disney and Tencent indeveloping the Chinese market from multiple industrialdimensions. It is more scientific to introduce quantitativeanalysis into qualitative analysis. In the results and discussionsection, the cooperation between Disney and Tencent tocreate exclusive IP images and put them into Tencent'sMarket in China is discussed in detail from aame, socialnetwork and video directions, which are three rapidlydeveloping industries in the Chinese market. In addition, theanalysis is divided into four parts, respectively from theDisney’s cooperation with Tencent's strengths, weaknesses,opportunities and threats, combining qualitative analysis withquantitative analysis, and verifying its feasibility.In the threats analysis, it was suggested that Disney canspend money on training technical staff to improve its skillsrather than outsourcing its business. Disney also need tocontinue accelerating app innovation to retain consumers.C. OpportunitiesDisney is a globally recognized brand, which allows themto expand its business in other markets. They can choose toopen their physical attractions in many different locationsaround the world. For example, the Shanghai Disneyland inChina, opened in 2016, was a huge success. They can alsostart providing international consumers with a unique parkexperience in a virtual way. As a leading company in thetechnology field, Tencent has the resources and technology toachieve this goal. The development of the WeChat applet inShanghai Disneyland mentioned above is based on thispotential opportunity. At the same time, Disney can evaluatethe changing market trends and develop products that adaptto them. Through the cooperation with Tencent Video, newtechnologies are acquired, and the company's Disney platform can be innovated to reach the stature of Netflix.CONFLICT OF INTERESTThe authors declare no conflict of interest.AUTHOR CONTRIBUTIONSXi Ling conducted the introduction; Meilin YANsummarized the abstract and conclusion, conducted the dataand method; Hang Chen and Yuzhuo Li wrote the Resultsand Discussion; all authors had approved the final version.REFERENCES[1][2]D. ThreatsHowever, the ongoing threats to Disney are numerous.Disney Company is confronted with high expense tolls,isolation, and poor technology. According to the 2021Business Strategy Hub, “Disney has always spent largeamounts on their workforce, employee development, andtraining. Currently, the average salary offered for a beginnerat Disney is 15 an hour” [10]. Salary wages around the globeare continuously increasing. “With salary wages rising by thecountry’s law, Disney could end up with lower profits when itcomes to paying off their external workforce in foreign[3][4][5][6][7]143Leadership & general management: Make a career move to siness-strategy/F. Nickols. Three kinds of business strategy. [Online]. ning/three-kinds-of-business-strategy.htmM. J. Robbins, “The most powerful mouse in the world: Theglobalization of the Disney Brand,” Chancellor’s Honors ProgramProjects, 2014.J. Wasko, “The Walt Disney Company,” in Global Media Giants,Routledge, 2016, pp. 11-25.D. W. Pickton and S. Wright, “What's swot in strategic analysis?”Strategic Change, vol. 7, no. 2, pp. 101-109, 1998.E. Gurl. (2017). SWOT analysis: A theoretical review. [Online].Available: http://hdl.handle.net/10673/792P. Groote, “Globalisation of commercial theme parks Case: the WaltDisney Company,” Apstract: Applied Studies in Agribusiness andCommerce, vol. 5, pp. 21-28, 2011.

Journal of Economics, Business and Management, Vol. 10, No. 2, April 2022B. E. P. Napitupulu, “What Makes tencent becomes a successfulbusiness? A case study analysis of Tencent,” Doctoral dissertation,STIE Perbanas Surabaya, 2020.[9] M. Roosevelt. (January 30, 2018). Disneyland workers offer mixedreactionsto eactions-to-1000-bonus/[10] A. Chiman. (November 28, 2019). Disney SWOT analysis 2019:SWOT analysis of Disney. Business Strategy Hub. [Online]. f-disney-2019-disney-swot-analysis/[11] T. Mzezewa. (April 29, 2021). Disneyland's reopening: What you needto know. The New York Times. [Online]. l/disneyland-reopening-california.[8]Yuzhuo Li is study at Syracuse University. She wasborn in July 1999 in Wuxi, China. Her researchinterests are marketing, social media and brandmanagement, communications.Xi Ling is study at New York University, Steinhardt.She was born in September 1999 in Beijing, China.Her research interests are Education industry,investment and enterprise.Copyright 2022 by the authors. This is an open access article distributedunder the Creative Commons Attribution License which permits unrestricteduse, distribution, and reproduction in any medium, provided the originalwork is properly cited (CC BY 4.0).Meilin Yan is majored in accounting at the HongKong Polytechnic University, living in Kowloon,Hong Kong. She was born in November 2000 inHarbin, Heilongjiang Province. Her research interestsare business analysis, accounting.Hang Chen is study at University of TorontoMississauga. He was born in July 2000 in Changchun,China. His research interests are marketing, riskmanagement, and finance.144

Disney to explore the Chinese market and improve its profits. Index Terms — Disney, SWOT analysis, business strategy. I. I. NTRODUCTION. A. Background Information . The world's first Disney theme park, founded by Walt Disney, the renowned cartoon master, was built in the city of Anaheim, California in the United States on July 17, 1955;