Walt Disney Case Study
As an external consultant carrying out a research study on Walt Disney. I have been investigating why Disney has fallen behind film giants like Netflix in terms of competition. What is more, my study involves the analysis of policies that are being implemented by Disney concerning global performance and the company’s long term sustainability. After I few studies, I discovered that the main drawback facing Disney is the tight competitive threat coming from other digital filmmakers and, most importantly, Netflix. While basing my research on statistical data, in the early periods of 2019, Disney had 25 million subscribers in the United States alone. And during the previous times, Disney has generated annual revenue of one and a half billion dollars (Anita & Monica, 2019). Despite the previous income, Disney is facing some challenges that might lead to a loss of one and a half-billion dollars. On the other hand, Disney’s main competitor Netflix has one hundred and forty million subscribers, and most of them are widely spread all over the globe. To be more precise, Netflix is available in over 150 countries; what is more, it serves twenty percent of United States’ subscribers (Anita & Monica, 2019).
Through my performance evaluation, I will implement two main tools of analysis: the shared value concept and the stakeholder theory. To begin with, the stakeholder theory, it is a tool of analysis that primarily focuses on the overall value that the organization creates to the stakeholders. And the enterprise’s stakeholders include the customers, suppliers, employees, and investors. The stakeholder theory emphasizes the mutuality of benefits for all parties as a moral consideration in the management of an organization (Harrison, Felps, & Jones, 2019). However, from my observations, Disney has not been utilizing the stakeholder theory as compared to Netflix, and it is evident in the difference in performance. For instance, Disney does not have a digital platform that provides a wide variety of programs like Netflix. As a result, Disney should emphasize the mutuality of benefits and value creation to foster competitiveness. Another vital tool of assessment is the shared value concept, and it outlines the relationship between the business and the social demands on the consumers (Porter & Kramer, 2011). Disney has been focusing solely on customer satisfaction, and this limits competitiveness. Therefore they have to practice shared value to boost performance.
Despite the stiff competition, there several solutions that Disney can implement to foster the firm’s competitiveness. To be more precise, since Disney is well known all over the globe, it is time they have their own branded streaming service, to ensure their consumers can access a customized, personalized experience. Given the rapid development in technology, Disney must utilize technology to improve consumer satisfaction. That aside, another possible solution that can foster Disney’s competition is offering a wide range of services at an affordable price. Due to global dominance, Netflix increased its standard plan from 10.99 US dollars to 12.99 US dollars (Anita & Monica, 2019). And this means Disney can take advantage of offering a subscription plan that is more cost-effective than Netflix. Another possible solution is merging with the global streaming service provider to reach more customers. Now all the stated answers are essential for Disney. However, there is a preferable alternative, which is taking advantage of Netflix’s initiative to increase prices by offering a counter subscription plan that is cost-effective. In most cases, consumers prefer high-quality and affordable services. By ensuring their streaming packages are more affordable, Disney will minimize profitability on each unit while maximizing the overall market
share. And this is essential for competitiveness.