Strategic Management: Case study

Ahsan Nasar Ashar Khan Rizwan Asif Asma Tufail Fatima Iftekhar

SWOT

Strengths
Strong distribution network Theme parks, resorts and amusement parks ESPN strong sports channel Favorable exchange rates in developing markets Customer loyalty and affiliation

Weaknesses
less digital presence low operational efficiency Low proprietary content protection

Opportunities
Movies and films Developing markets india and china South East Asia can contribute to long term growth Internet based distribution network rerelease content in 3D

Threats
low consumer spending at theme parks Inceased competition in sport events broadcasting rights Weak business cycles Competition with other media players

Strength Opportunities
Use existing distribution networks to expand global market share. Increase U.S. market share in movies and film. Develop media content that serves developing markets, notably India and China. Continue developing theme parks and resort services in SE Asia to contribute to the company's long-term growth. Use ESPN3 to develop alternative internet-based access to content through mobile devices. Develop internet-based distribution for family entertainment related content including social networking. Incorporate sports themes into Disney resorts and amusement parks.

Strength Threats
Take advantage of favorable exchange rates in developing markets including China and India to Increase consumer spending at park locations. Provide leadership for acceptable internet-based distribution systems. Long-term deals for sports broadcasting properties increase customer loyalty and affiliation. Weak business cycles present opportunities to increase market share by offering discounts and promotions for in cruises, resorts, and theme parks. Consider further acquisitions in the Indian media market to develop economies of scale, and promote industry consolidation.

Weakness Oportunities
Establish greater presence in digital gaming and online social networks directed at teens and younger family members that may offer greater margin spread. Re-release content in 3D versions allows for low-cost opportunity to earn higher revenues. Develop newer and better distribution methods for its time-sensitive sports related content. Streamline customer accounting processes and link various segments to make it easier to access content and services, and improve operational efficiency.

Weakness Threats
Use the acquisitions of notable media producers to reestablish market share and improve creative content. Develop improved distribution networks to protect proprietary content. Promote long-term contract deals for sports programming properties that emphasize fan loyalty. Partner with industry players to legislate greater enforcement of proprietary content.

Space Matrix

Space matrix for case study

Internal Strategic Position
Financial strength Earning per share Return on asset Return on equity Access to capital Average

Rating
4 4 3 5 =4

External Strategic Position

Environmental Stability Demand Risk -2 Pricing elasticity Competitive strategy Technology Average

Rating

-3

-3 -2 -3 = -2.6

Competitive advantage Customer loyalty Services quality First mover advantage Market share Brand recognation Average

-3 -2 -2 -3 -1 = -2.2

Industry Strength Growth of the industry Ease of entry of competitors Economy of scales Average

3 2 3 = 2.67

Directional vector coordinates: x-axis: -2.2 + 2.67 = 0.47 y-axis: -2.6 + 4 = 1.4

FS
6

Conservative

Aggressive

(0.47,1.4)
1

CA
-6 -5 1 -4 -3 -2 -1 -1 2 3 4 5 6

IS

-2

-3

-4

Defensive
-5 -6

Competitive

ES

Strategy: Aggressive

Recommendation

Recommendation
It need to use its internal strengths to develop market penetration. Continue to invest in innovation to sustain and build the competitive advantage. Cover any moves made by competitors to develop alternative competitive advantages. Close off the opportunities to build a differentiated value proposition that may prove attractive to segments of the market. Aggressively build market share by Concentration and horizontal diversification

Recommendation
Raise the stakes for other competitors to play the game. This may be through rapid product innovation, marketing campaigns or reducing prices to levels that competitors find difficult to match. Grow within the market through acquisitions. Follow up on possible opportunities in the market including backward or forward vertical integration. Move into related markets which complement the existing position.

Recommendation: Concerns
Avoid complacency business can seem also too easy but new threats may come from substitute markets or as technology makes different sectors converge. Avoid running foul of anti-competition policies. Sometimes a business that is too strong can attract the attention of regulators and especially if it uses predatory pricing aimed at driving competitors out of business

Thank you!