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The Walt Disney Companys Generic Strategy
The Walt Disney Company, one of the biggest entertainment companies in the world, utilized various business models. In the present time, the company uses the generic strategy to obtain a competitive advantage by the unique structure of the entertainment, mass media, and amusement park industries (Williams, 2019). Generally, generic strategy develops the competitive advantage of other companies in this sphere by producing new products that correspond to global trends. The company puts creativity and innovation first, enabling it to compete against other entertainment giants such as Time Warner Inc., Sony Corporation, CBS Corporation, and Viacom Inc. Williams (2019) highlights that the competitive environment affects the strategic goals and competitive advantage, maximizing the growth benefits. The company implements a generic strategy introducing the product-focused development model.
Product differentiation is a crucial component of the generic strategy for competitive advantage. Based on Michael Porters model, the strategy covers unique products distributed to many market systems (William, 2019). Disney companys products could be found in every part of the world and include family-orientated programs as well. According to William (2019), the companys theme parks and resorts have strategic teams that ensure the uniqueness of the product and observe clients satisfaction. The product differentiation focus supports the development allowing to resist against the competitor. Moreover, this approach creates the companys brand providing another advantage to the competitor.
Talking about the Walt Disney Companys intensive strategy for growth, several stages could be observed. Product development is a primary stage in the system that facilitates the companys intensive growth. In this strategy, a new product is introduced in the current or existing market (William, 2019). For example, the movie release becomes a perfect ground to generate more profit by offering corresponding merchandise. As highlighted by Williams (2019), Disneys organizational structure effectively manages product development and connects the system with effective management. The companys strategic objective at this point is to create a positive environment, effectively persuading customers to obtain an entertainment experience. Another consideration associated with the Walt Disney Company is its market penetration. Being the secondary intensive strategy, market penetration facilitates stable growth by increasing sales of products in the companys current markets. To illustrate, the corporations strategic objective could be used for aggressive advertising in order to increase revenue in the global entertainment market (Williams, 2019). The brand that relies on the generic differentiation strategy emphasizes competitive advantages that attract customers and increase revenue.
Considering Walt Disneys development strategy, it is crucial to highlight the role of market development in its growth. The intensive method requires constant updates of the various products in the different market segments (Williams, 2019). For example, a unique product of the Disney Company Disneyland amusement parks occupies local markets, providing a new economic environment. In their amusement parks, they could introduce new products by applying a differentiation generic competitive strategy that helps introduce products in the market.
The Walt Disney Company implements a diversification method to support intensive strategy growth in supporting the business strategies. Williams (2019) claims that this strategy is a classical approach in developing and creating intensive growth. One example of this structure is the Disney Cruise Line that combined the main aspect of the company entertainment with tourism. As the company uses the brand name to promote the product, diversification allows presenting the product in various markets. This makes Disneys corporate strategy unique and strong to manipulate the market.
References
Williams, A. (2019). Disneys Generic Competitive Strategy & Intensive Growth Strategies. Panmore Institute. Web.
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