Five Force
5 Competitive Forces Analysis
1. Rivalry among existing firms(competitors)
Competitiveness of enterprises and the current does not play a very important role in Disney's external business environment. That is true, the company's very high exit barriers. In addition, the ability to increase in a very large investment. Therefore, there is no strong direct competitors Disney's business. Competitors, such as "Lonely Tunes" retail stores bear the expensive advertising to gain market share.
2. Bargaining powers of customers
The bargaining power of customers is high in the service and entertainment industry. Disney's business running smoothly requires a lot of customers; the customer has a certain power. For example, if a specific home video price is too high, customers may not be willing to spend the money needed to buy the product. Another example is in the Disney theme parks charge entrance fees. The customer is willing to pay the maximum amount is $ 33. In addition, the entertainment industry does not save the buyer money. Instead, it is to design a way, it will enable the buyer to spend more money. The majority of Disney's product portfolio, focusing on the invisible return on the buyer's money. Some customers may not realize that they are getting such returns may increase the bargaining power of customers.
3. Bargaining powers of suppliers
The bargaining power of suppliers is moderate. Walt Disney Company in a highly differentiated and unique industrial operation and high switching costs associated with the business, suppliers mainly by a handful of companies, is most likely very concentrated. However, Disney is unique and important customer for many suppliers. In addition, the size of the company certainly is a big advantage. Can be ordered from the sole supplier of a large number of unique products, will create a dependency in the same industry.
4. Threats of the substitutes
The threat of substitute products or services is moderate to
1. Rivalry among existing firms(competitors)
Competitiveness of enterprises and the current does not play a very important role in Disney's external business environment. That is true, the company's very high exit barriers. In addition, the ability to increase in a very large investment. Therefore, there is no strong direct competitors Disney's business. Competitors, such as "Lonely Tunes" retail stores bear the expensive advertising to gain market share.
2. Bargaining powers of customers
The bargaining power of customers is high in the service and entertainment industry. Disney's business running smoothly requires a lot of customers; the customer has a certain power. For example, if a specific home video price is too high, customers may not be willing to spend the money needed to buy the product. Another example is in the Disney theme parks charge entrance fees. The customer is willing to pay the maximum amount is $ 33. In addition, the entertainment industry does not save the buyer money. Instead, it is to design a way, it will enable the buyer to spend more money. The majority of Disney's product portfolio, focusing on the invisible return on the buyer's money. Some customers may not realize that they are getting such returns may increase the bargaining power of customers.
3. Bargaining powers of suppliers
The bargaining power of suppliers is moderate. Walt Disney Company in a highly differentiated and unique industrial operation and high switching costs associated with the business, suppliers mainly by a handful of companies, is most likely very concentrated. However, Disney is unique and important customer for many suppliers. In addition, the size of the company certainly is a big advantage. Can be ordered from the sole supplier of a large number of unique products, will create a dependency in the same industry.
4. Threats of the substitutes
The threat of substitute products or services is moderate to