Strategic Management Discussion (Essay Sample)

Strategic Management Discussion
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Institution
Date
Strategic Management Discussion
In 1955, Disney established its first theme park in California in 1955. Since this park and resort founding, Walt Disney has built 13 others across the globe and in present days, and the firm is a dominant force in the theme park industry. The company has plans to open another park in Shanghai, China in 2016 (Ayodele, 2013).
The amusement park industry encompasses approximately 482 businesses in the United States, generating $15.4 billion dollars in revenue in 2013. The sector is currently on the upward trend in growth though there were declines both in the attendance and revenue in the economic recession of 2007-2008 (Levitt, 2014). In recent days, the Theme park industry has become very competitive with major players being Walt Disney, Universal Studios, and Merlin Entertainments, who have high presence and impact in major markets. Following closely, other key players include Oct and Six Flags.
However, the leading two competitors are the Walt Disney and Universal Studios, both of which are well established in the US, Asia and Europe. While Disney has eight parks among the world’s top 25 theme park and resorts, Universal has four. With the United States being the primary performing market, the theme park and resort operation over the years has  spread out across principal markets across the globe (Ayodele, 2013).
The EFE and CPM below highlights the case of Walt Disney

External Factor Evaluation (EFE) Matrix


Opportunities

Weight

Rating

Weighted Score

1

Using Branding to leverage Digital Marketing

0.2

4

0.8

2

Considerable vast resources of parent company to draw on

0.01

3

0.03

3

Taking advantage of emerging markets such as China

0.2

4

0.8

4

Technological Advancement

0.1

4

0.4

5

Threats

Weight

Rating

Weighted Score

6

Economic recession in US and Europe

0.2

3

0.6

7

Government Regulation in host countries

0.05

2

0.1

8

Competition rendering Walt Disney rides undesirable

0.07

2

0.14

9

Rising Cost within Urban areas

0.05

2

0.1

10

Total Weighted Score

1

 

2.97

 

Ratings Given on a scale of 1- 4, where one (1)= poor response, two (2)= average response, three(3)= response above average, and four (4)= response is superior.

 

The 2.97 Score indicates above average indicating a fairy strong but not too strong position considering external factors


The Walt Disney Competitive Profile Matrix


 

Walt Disney

Universal Studios

Six Flag

1

Critical Success Factors

Weight

Rating

Score

Rating

Score

Rating

Score

2

Brand Reputation

0.9

3

2.7

3

2.7

2

1.8

3

Customer service

0.7

3

2.1

3

2.1

2

1.4

4

Distinct Content

0.6

2

1.2

3

1.8

2

1.2

5

Digital Capabilities

0.7

1

0.7

4

2.8

3

2.1

6

Market Share

1

4

4

3

3

2

2

7

Global Spread

0.8

3

2.4

3

1.6

3

2.4

8

Low Structure and TQM

0.7

3

2.1

2

1.4

4

2.8

9

Parent Company Backing

0.9

4

3.6

3

2.7

4

3.6

10

Revenue

0.8

4

3.2

3

2.4

3

2.4

11

Recent New Rides

1

3

3