SO Strategies

1. Add more promotions and special events during peak seasons and special
holidays. (S1, O4)

The Walt Disney Company owns and licenses 11 theme parks around the
world. Disneyland had become the world's most famous themed amusement park and
one of the most visited sites in the world. 1.Disney is experiencing the increase of
revenues and operating income by 10 percent and 30 percent for theme parks and
resorts division. Due to the seasonality, theme parks and resorts businesses experience
fluctuation. The peak attendance and resort occupancy generally occur during the
summer breaks and during early-winter and spring-holiday periods. Therefore, it will
be a business opportunity for Disney to add more promotions during the peak seasons
to attract more visitors. Furthermore, Disney can also held special programs during
holidays such as Halloween, Christmas, and New Year’s Days. Moreover, Disney can
also offer discount promotion or family vacation packages during Mother’s Day,
Father’s Day, and Children’s Day.

2. Offer lower subscription fees for signing up video-on-demand services. (S5,

O1)

Video on Demand (VOD) or Audio Video on Demand (AVOD) are systems

which allow users to select and watch or listen to video or audio content on demand.
People can catch dramas or movies that they missed when they are free by subscripted
to the VOD service. Since many company have offer the same service, it is better that
Disney strive to offer some distinctive benefits to the users to grab the market share.
Thus, we suggested that Disney can lower the subscription fees for signing up video-
on-demand services to attract more customers. Disney can offer customers to stand a
chance to win a pair of movie tickets of the Disney latest movie when they
subscripted to the service.

3. Build new theme parks in other area- Malaysia. (S1, O4)

As Disney revenues and operating income in theme parks and resorts division
increased 10 percent and 30 percent, Disney can focus their business in theme parks
and resorts. Disney has expands its business in other countries and is continuously do
so. According to Wikipedia, Malaysia made it into the top 10 most visited countries'
list and was rank with 9th place in 2009. Meanwhile, Kuala Lumpur is the 5th top most
visited cities by international tourist arrivals in 2009. Based on the reports from
Research and Markets, it is expected that expenditure by international tourist in
Malaysia will increase by 7.2% per head by 2011 as compared to 2006 and the figure
will be increase continuously due to the good economic performance. Also, it is
expected that Malaysian per head disposable income will be increase now and the
future. Furthermore, Singapore, Thailand and Indonesia are important sources of
visitors for Malaysia. Beyond ASEAN, tourist arrivals from China and India will
remain an important source too. Besides the small scale theme park in Genting
Highland, Malaysia is still lack of more dynamic and exciting theme park. Thus, by
building new theme park in Malaysia, Disney can expand its consumer markets and
market share in Southeast Asia and ASEAN region as well.

WO Strategies

1. Conduct R&D for videos and digitalize books and magazines. (W1,O1)

Video on Demand (VOD) or Audio Video on Demand (AVOD) are systems

which allow users to select and watch or listen to video or audio content on demand.
Since the trend now is all about going online and on demand, Disney can conduct
research and development on theirs Video on Demand by introducing various types of
videos and audios. Nevertheless, Disney may conduct research by distributing
questionnaire online to investigate the types of videos or audios that most favor by
users and their perception towards those videos and audios. Thus, they may develop
the products base on the results of the research yet fulfill the needs and wants of the
users. While facing the declining revenues on consumer products segment, Disney
may solve this problem by digitalization some of their consumer product. For
instance, takes the technology to new place by offering Disney Digital Books with
popular characters which induce a more interactive, fun and more adventure reading
atmosphere. Moreover, since people are rather to spent most of their time sitting in
front of computer, Disney can digitalize their magazines and therefore, allow all the
users to read it when they online.

2. Offer a series of vacation packages for different segment of customers

during off season. (W5,O4)

Seasonality is concern for this segment as all of the theme parks and the
associated resort facilities are operated on a year-round basis. During the off season,
Disneyland theme park management can offer a series of vacation packages for
different segment of customers. For example, 7 days/6 nights for a family of 4 with
theme park tickets and accommodation. In addition, they can offer student price to
encourage students organize their vacation at Disney. Besides, Disney may obtain
cooperation from travel agency by offering special package for customer during the
off season. For example, the special packages may include a lower ticket price to
Disney with accommodation in Disney resort and Airline ticket. Therefore, it will
provide convenience for customers since they don’t need to book hotel and airline
ticket by themselves. As a result of building this type of relationships, both travel
agency and Disney could have benefits in term of increase revenue. Moreover, Disney
is not merely to gain revenue for their theme park but their resort’s revenue as well.

3. Produce various types of movies and offers for different segment of

customer. (W3,O5)

Movies have been a reasonably priced entertainment for many individuals,

couples, and families for years. Many people like to spend their free time by catching
a movie at the cinema. The increases of people having movie as entertainment helps
to generate more revenue to the movie producers and distributors. However, Disney
revenues from its Studio Entertainment segment decreased 1 percent. Therefore,
Disney should produce more movies to attract the different segment of their customer.
For instances, Disney may produce family-oriented movies thus the whole family are
able to watch that movie and enjoys together with their children in cinema. In
addition, Disney could produce a series of motivation movies to attract the young
customer and perhaps this type of movie could help them to gain courage and self-
motivate which they extremely need during these ages. On the other hand, Disney
could cooperate with cinemas to offer different movie package for different type of
customer. For instances, they can offer family package movie ticket for family
member with a lower price (buying ticket for 5 people with price of 4 people) or free
some food and beverages for family package. As a result, it will probably increase the
number of family member to watch movie in cinema. In addition, they could offer
student price on certain day for those student who choose to watch Disney’s movies.

ST Strategies

1. Add new adult facilities/ playground (S5, T3)

ST strategies use a firm’s strengths to avoid or reduce the impact of external threats.
At this way, Walt Disney Company has successfully established itself as a pioneer in
the field of family entertainment; Disney World is currently the number one
destination for family vacations. It is an ideal place for a family to reconnect while
sharing a one of a kind experience at the world famous theme parks. However the
strategy launched by Viacom Inc. which has started opening adult playgrounds
offering virtual reality games is threaten Walt Disney Company. Therefore, for reduce
the impact that brought by Viacom, Walt Disney should add 3 more types of adult
facilities or playground in its theme park. Having more adult playground can retain
Disney the customer and prevent them from going to the adult playground that own
by Viacom. For example, Disney can offer virtual reality games in its park, people
will tend to go Disney Land when Disney Land offering a family oriented park
instead of Viacom offer only adult playground.

2. Attach free gift along with the genuine product (S4, T7)

Disney is the largest worldwide licensor of character-based, merchandise and

producer/ distributor of children’s film related products based on retail sales.
However, the growing risk of copyright infringements and unauthorized sharing of
movies, DVDs, and other digital products also threaten Disney. The days for only
luxury goods were counterfeited, or when unauthorized music CDs and movies DVDs
were sold only on street corners are long past. This growing risk will directly decrease
the sales of Disney’s products. For overcome this problem, Disney can attach the free
gift along the genuine products while counterfeit will never afford to launch this
strategy. For example, when people consume a Mickey Mouse Bag, they will get
along a free gift for a Mickey Mouse Pencil Box. The free gift can catch people eyes
and attract people to consume it. The limited edition free gift will surely become
strength for Disney to against the counterfeit product.

WT Strategies

1. Add more Consumer Products Store’s promotions monthly (W1, T7)

The growing risk of copyright infringements and unauthorized sharing of movies,

DVDs, and other digital products is directly affecting the sales of Consumer Products.
There are a lot of Disney’s counterfeit products including books, toys and etc in the
market causing that some people choose to buy cheaper counterfeit products instead
of Disney genuine products. Some of the people are also sharing Disney interactive
games through internet that later influence the Disney’s sales also.

Thus, we are suggested that Disney can add more stores’ promotion monthly
to encourage their customers to buy Disney products. People are happy and tend to
purchase Disney products during promotions as they can get Disney genuine products
in lower price. Otherwise, when Disney launches a new movie with new characters,
they can actually do more promotions as people will love to collect these merchandize
products during that period. For instance, Disney movie “Car 2” is going to show
lately thus hey can do promotions with this movie characters to boost the sales.
Furthermore, Disney Consumer Product’s Store can select Disney famous character as
the “star of the month” to do the promotion. For instance, Mickey Mouse is selected
as the Star of the Month and thus, all the Mickey Mouse products will be given 20 to
30 percent discount.
2. Produce more movies with 3D animation (W3, T5, T7)

Disney Studio Entertainment is famous in producing live-action and animated

motion pictures and so on. However, it is known that its Studio Entertainment
segment has decreased due to lower worldwide home entertainment as consumers of
all ages use the Internet more and more for entertainment. The increases of
unauthorized sharing of movies and DVD on Internet also causing people prefer to
download unauthorized movies for free than catching movies at cinema.

Currently movies with 3D animation became more and more successful

throughout the 2000s. People are enjoying the 3D effects as the characters are look so
real and seem to be coming out alive from the screen. According to the workers at
Columbiana Grande Cinemas say despite the increased ticket price, patrons pick 3D
over normal 2d by a 2-to-1 ratio. (http://www.wistv.com/global/story.asp?
s=11961092). Seemingly, movies with 3D animation are driving people back to
cinema and increase the revenues. Furthermore, many people still don’t have 3D
devices in their house and hence, when they want to watch a 3D movie, they just can
go to cinema.

3. Adding three new themed areas in Hong Kong Disneyland

Hong Kong Disneyland is the smallest Disney theme park. Hong Kong
residents are not very impressed with the small version of Disneyland built there since
many have visited Disneyland in Tokyo or Anaheim, California. Comparing to its
competitor, Ocean Park’s attendance and profits has received a steady growth.
Therefore, it is suggested that Hong Kong Disneyland can expand their park’s size by
adding three new themed areas there. The new themed areas should be outstanding
and different with other Disneyland so that it can attract people to visit there.
Furthermore, the themed areas should include some factors that are suit to local
people demands, for instance, decorate the areas with Chinese decoration elements
such as Tang-Lung.