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This case was described about the Walt Disney Companys history from 1923 to 2001 The company was declined after the dead of its founder Walter Elias Disney and resurgence under Michael Eisner former Chief Executive Officers Walt Disney Company Walt Disney was founded in 1923 known as Disney Brother Studio Walt Disney has became a world leader in family entertainment Today the company is operating on a multinational level and has over 58000 employees world wide and over 189000 shareholders What are the factors that contributed to the companys successes and failures on its way towards becoming the Worlds largest family entertaining company I would discuss the stated question by analyzing the Disneys industry in relation to Porters Five-Forces Model In addition I would like to make a recommendation on the strategic changes and tactical changes that are needed to be made at the Walt Disney Company Porters-Five-Forces Model focuses on the external environment that the company has to be able to cope with The first force to be discussed is the threat of new entrants Since the Disney Company has been able to find a very distinctive niche in the industry the entrance barriers are relatively high As Disney pretty much dominates the family entertainment market and it would be very difficult for such a new organization to develop brand recognition and product differentiation In addition extremely large amounts of capital investment are required for new entrants into the industry The bargaining power of customers is high in the service and in the entertainment industry Since a large number of customers are needed to make Disneys operations run smoothly the customers have certain powers For instance if the price on a particular home video is too high customers may be reluctant to spending the money needed to purchase the product On the other hand the bargaining power of suppliers is moderate As the Disney Company is operating in a highly differentiated and unique industry
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