5 Forces de porter - disney industry

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About Disney . . .

The Walt Disney Company was founded in 1923 by brothers Walt and Roy Disney under the name Disney Brother Studios , the company was reincorporated as Walt Disney Productions in 1929 then in 1986 it was again renamed as The Walt Disney Company. Today, it’s one of the largest media and entertainment corporations in the world.

The company is organized in four main businesssegments:

Studio Entertainment : Production and distribution of movies, shows and music.

­ Walt Disney Pictures- which includes Walt Disney Animation Studios, Pixar Animation Studios Disney Toon Studios- Touchstone Pictures, and Hollywood Pictures and Miramax Films.

­ Walt Disney Studios Motion Pictures International is the studio's international distribution arm.

­ Walt DisneyStudios Home Entertainment distributes Disney and other film titles to the rental and sell-through home entertainment markets worldwide.

­ Disney Music Group distributes original music and motion picture soundtracks under Walt Disney Records, Hollywood Records, and Lyric Street Records.

Parks and Resorts : featuring the company's theme parks, Disney cruise line, and other travel-relatedassets.
There are 5 parks in the world : Disneyland Resort in Anaheim, California - Walt Disney World Resort in Lake Buena Vista, Florida - Tokyo Disney Resort in Chiba - Disneyland Resort Paris in Marne La Valle, France and Hong Kong Disneyland in Lantau Island.

Consumers Products : Disney Consumer Products (DCP), managing licenses for garments, toys, interactive games, food, drink andaccessories. Production of interactive games and other merchandising based upon Disney-owned properties.

Media Networks : which includes a vast array of broadcast, company's television, cable, radio, publishing and Internet businesses
Key areas include: Disney-ABC Television Group, ESPN Inc., Walt Disney Internet Group, ABC owned television stations…

Analysis to the strategy of Disney Company in theentertainment market through Porter’s model


Disney in the Entertainment industry has a solid foundation in financial, fixed costs are high due to strong investment which creates a barrier to entry. But this strong investment also creates a barrier to exit, if demand falls Disney can’t leave the area easily.

At the price, Disney offers new tariff packages varied and adapted tothe current economic context, offers all-inclusive to facilitate the arrival of customers.

Disney stands out from other competitors in its sector by focusing its advertising on the values of the Disney family, magic, and the importance of dreams which made him the leader in its field.

Disney has diversified from its various competitors in each of its divisions, yet he has to win every time asleader or in the top 5. Its competitors are trying to counter its position through innovation in new technologies.

Its main competitors are: Fox Entertainment Group, Inc., Liberty Media Corp., Viacom Inc., Time Warner Inc., CBS Corporation, Lions Gate Entertainment Corp.. . .

One can see that Disney takes a vertical growth in particular with the acquisition of ABC in 1996 for opportunitiesin radio and television (broadcasting disney, promotion theme parks). Recently this method was repeated with the acquisition of Pixar in 2006. This strengthens the position of Disney and the possible eviction of its competitors.

But this isn’t the only process applied by Disney since Walt Disney group has exploited the synergies between its different activities (theme parks, movies, cartoons,products, software and cable TV) to reach a rapidly growing and profitable.

Threat of new entrants

The Entertainment sector is a very attractive especially from the perspective to the development and increasing demand in terms of new experiences.


Barriers to entry are manifold:

Disney is a well-known brand all over the world. The image of Disney is very healthy and...
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