Disney has developed a modern strategic plan so as to win back customers after it experienced difficulties in the past years. The company has changed strategy that the business uses to provide content to the audience and this leads to selling to others unlike before. Using content to appeal to the global audience has made the company shine in the entertainment industry. Firms need to adapt to changing environments to cope with the challenges they face and take advantage of opportunities. Organizations have to confront the challenges of developing suitable strategies to realize desired outcomes just like Disney. The firm is using films and has put them at the center of business; this is rebooting of the original scheme which has made it dominant in the industry. The essay critically reviews the change of strategy by Disney and how this has created the basis for a sustainable competitive advantage in the entertainment industry.
Strategy formation and implementation; the firm came up with and is currently implementing a strategy that will make it shine. Strategy formation is the development of actions that enable a business to meet its goals whereas strategy implementation is putting the actual strategy into practice to achieve desired outcomes. The business has implemented its intended strategy of using content to appeal to the audience by using the “The Force Awakens” film. The strategy of putting content at the center of business will produce the desired outcomes and make it realize its goals. The company strategy of getting new characters so as to bring back fans has also been a blessing. “Disney is commercializing childhood through lots of channels and making the companies it bought to be more valuable” (Disney 2).
The firm strategy is to put films back at the heart of business by providing content to the audience who are its potential customers. Disney has remodeled itself to prize content over the means to distribute unlike it was done a long time ago. Disney realized that viewers had started to switch off for the content delivered on demand over the internet. The company realized that putting story telling at the heart of business will help in accomplishing its goals and keeping the viewers entertained. Stories are being employed to protect the company against the current sweepings that have posed a threat to the industry.
Disney has put in place a strategic plan, which will enable it to shine in the entertainment industry thus outshining its competitors. Strategic plans are the essence of strategy. Any business that intents to make profits and achieve desired outcomes must have a strategic plan. The company intends to rely on content to attract more fans who may translate to customers. The main aim of any company is to make profits, and this can only be realized by winning the hearts of customers. Potential clients are the global audience who seem to embrace the approach that the business is taking. The firm has looked at the market forces and realized that it has to change its strategy in order to survive in the entertainment industry. The change of strategy by the company has made it have an advantage over other companies thus outperforming them. Profits have doubled over the past few years and the share price of the company has risen in the last one decade. This is an indication that the plan is working. The strategic issues that are currently confronting the company are the market forces. “According to research by eMarketer, the number of American households with pay-TV is expected to drop by 5m between 2014 and 2019” (Seitz 1). This is a clear indication that the way audiences get content may change in the coming years. This shows that the firms with popular stories and characters will have an advantage over other and thus make more profit.
The company has gained an advantage over others due to its noble strategy because they have taken advantage of the current market force to come up with a strategy that will make them remain relevant in the years to come. They have recruited the best actors in the whole industry as it is evident from the film and this has won the hearts of many fans. It is clear that companies with the most popular actors and stories will have an advantage over others in future. The move by Disney to recruit the best actors and use content to appeal to the audience will make it even realize more profits. I recommend that the firm should maintain storytelling at the heart of business so as to attract more fans who are potential customers.
Formulation and effective implementation of strategies are important to any firm which intends to realize its goals. “Firms must evaluate their resources to understand how they might react to changes in the environment and how market forces might affect business” (Saylor Academy 34). Disney has taken and is implementing the best strategy of using content to appeal to the audience. Preferences of viewers are changing, for instance, they have started to switch off for the content delivered on demand over the internet.
Disney, The force is strong in this firm; Disney is making a fortune and safeguarding its future by buying childhood, piece by piece.2016. The economist. Print.
Patrick, Seitz. “Pay-TV Cord Cutting To Continue Through 2019.” Investors Business Daily Dec. 2015: 00.Business Source Complete. Web
Saylor academy. Mastering strategic management,