The Walt Disney Company And Pixar Inc Case Study Solution and Analysis
Introduction
The Walt Disney Company And Pixar Inc Case Study Help is a well-known international brand in innovation industry, established in 1938 by Lee Byung Chul, in South Korea. The Walt Disney Company And Pixar Inc deals in large number of product classifications consisting of Semiconductors, Telecom, Digital Media, Digital Appliances and many more other electronic products. Historically, the business's core customers consist of the Original Devices Manufacturers (OEMs), which utilized to sell Organization products withtheir own brand. Till early 1990s, the core competency of Organization depend on its low rate offerings than its competitors by making existing products at economies of scale. Its customer circle includes Original Equipment Manufacturers (OEMs), who utilized to sell The Walt Disney Company And Pixar Inc Case Study Analysis products with their own brand. Org was not merely known outside Korea. There were likewise no or little interest in building the trademark name internationally. Marketing spending plan was managed by production department with a prime focus on offering low-cost products.During the 1997 Asian Financial Crisis the business nearly got insolvent, but with the Vision of Chairman Lee it completely turn its fortune around and in 2002 was listed the top 25 most important company worldwide. When Kim was hired as a Chief Marketing Officer in 2000 the company was not even noted. He repositioned Venture as a worldwide brand and educated his divisional supervisors to understand marketing and its value. Now their objective is to arrive 10 by 2005.
Problem Statement
Venture's transition from a product based to a marketing company is not going as smoothly as planned.Overcoming the reluctance of divisional supervisors to integrate marketing successfully is still a major obstacle. Producing a consistent brand identity throughout the entire world and using marketing techniques that finest fits the regional culture is no easy job.
Situational Analysis
The Walt Disney Company And Pixar Inc Case Study Analysis efforts for constructing its brand throughout the world was started after presenting the "brand-new management initiative" by Chairman Lee in 1993. The goal was to transform Corporation from a cheap OEM to a high value-added item supplier. To make the vision of Business a truth, Chairman Lee selected Yun as a vice chairman in 1997. Yun had a quite clear picture in his mind about how Corporation can transform from a low end to a high-end item company. He understood that transformation can just be done through positioning Corporation as a company using high-end products and this might only be done through high level of marketing.
In spite of having a clear vision about how to develop Corp brand, with a potential assistance of its executives, Yun faced a number of marketing difficulties in early years of its efforts.
One of the marketing challenges for Yun was the understandings of executives about the value of marketing. They thought about marketing and selling as very same tools and thought that quality items do not needed marketing for increasing sales. As their focus towards marketing was quite low in their previous company practices, and the current marketing requirement was excessive high, the space was too larger and to fill this gap with incorrect perceptions about marketing was rather difficult for Yun.
Along with it the product range of the company was increasing with the ripening of new item concepts by the R&D sector of Org. Yun had a difficulty to perform marketing planning and to produce marketing budgets for existing as well as for new items from the very start, and this would take a substantial time.
A substantial shift would be needed in current marketing expenses to construct the The Walt Disney Company And Pixar Inc Case Study Analysis brand. This would result in increased marketing expenses for Corporation and could disturb the administration regarding increased costs, as they were reluctant to marketing expenses previously and a sudden big shiftwould make them disturb. This could result in declining executive assistance for international marketing. In this scenario, Yun deals with a challenge for validating increased marketing expenditures by showing the long term worth of big marketing expenditures.
Internal Analysis
SWOT Analysis
Strengths
The Walt Disney Company And Pixar Inc Case Study Help strengths lie in its substantial item portfolio. Business has biggest number of patents in the market with overall number of 15499 patents granted in United States( USP).
Another strength of The Walt Disney Company And Pixar Inc Case Study Solution is its capability to establish ingenious products at a continuous rate. It major proves for the innovation and product creating of Business is that the company has received many awards for its innovation and product style.
Unlike Apple and other competitors, Org is concentrated on producing gadgets which can be easily incorporated with any kind of open source Os (OS) and software application. This offers Corporation an edge over Apple devices.
Company's capability to produce high end products at low expense of production is also one of the significant strength of Org as it enables the company to catch more market by offering quality products with expense control.
Weaknesses
The Walt Disney Company And Pixar Inc Case Study Solution weak points are hidden in the company's dependence on outsourcing software application for its devices due to company's failure in developing software application, unlike Sony. Org likewise has low revenue margins as compare to Apple due to huge difference in the costs of Apple and Enterprise with a much lower distinction in quality. The varied focus of the company due to large number of items in its portfolio, lead to the less efficient production and make the company not able to charge higher rates like Apple. The company is likewise ineffective in managing its patents and often faces the issue of patent infraction.
Opportunities
Opportunities for The Walt Disney Company And Pixar Inc Case Study Analysis lie in the growing Smartphone market and the business's effectiveness in the market. Enterprise presently runs in about 80 countries and the company has a chance to increase its geographical growth by moving towards more emerging markets outside Asia.
Dangers
The dynamic industry environment of innovation industry present an extreme hazard on Corp's survival and require the company to invest much of its profits share on R&D in order to endure in the long run. The marketplace saturation in industrialized countries i.e. saturation of mobile business is likewise a big danger for the company's development in the presence of strong competitors like Apple.
4 P's of Marketing
Product
The Walt Disney Company And Pixar Inc Case Study Analysis provides quality items and has a rather rich portfolio which deals with different segments. The majority of the products are in the top three of their respective markets. LCD and mobile phones are the most significant items of Corporation, whereas DRAM is likewise not far behind in contrast of them. Following is the product line of Org:
• LCD/ TV
• Laptops.
• Mobile phones.
• A/c.
• Computer.
• Hard disks.
• Washer.
• Refrigerators.
• Cams.
• Microwaves.
• Flash memory.
• DRAM.
Cost.
The Walt Disney Company And Pixar Inc Case Study Solution utilizes both market competitive and market skimming rates strategies for its wide array of products. In competitive prices it changes the cost according to the competitors in order to get advantage, whereas, it uses market skimming method where the product has actually an added worth and by selling a couple of items it can reach break-even.
Place.
It has among the best supply chain networks, with retail suppliers, their own sole distributors, E commerce channels like Amazon etc. All its products are prompt supplied to the selling location/ delivered to the clients directly in case of online order.
Promo.
It wasn't a well-known company beyond Korea till 1993. The management effort taken by their CEO has actually pressed them to market more effectively outside the borders and now it has gotten in the league of top 25 companies in the world in just 9 years. This is an amazing achievement despite the ongoing arguments amongst the supervisors about adopting marketing practices. It utilizes both offline & online channels of promo to market their products. Paid item advertisements, social promo and digital ads are uses to create awareness about Organization items.
Worth Chain Analysis.
It's an analytical structure for recognizing company activities that add value or competitive benefit for the company.
Inbound Logistics.
For its inbound logistics it owns different logistics firms as it subsidiaries. It looks after its providers and develops a harmonious relationship with them and even decreased their payment cycles to enhance this relationship even more which adds value to their chain network.
Operations.
Org's core proficiency is its mass making it produces 90% of its items in-house. Divided into 3 different divisions its operations are namely IT & Mobile Communications, Gadget Solutions and Consumer Electronics. It is preserving operation centers worldwide to further add value to its value chain network.
Outbound Logistics.
Its outgoing logistics system performance is one of the main factors The Walt Disney Company And Pixar Inc Case Study Analysis has the ability to compete with Apple. Venture's own Electronic Logitec system plays a significant function in the outbound logistics operations. It even carries out the tasks of collection of payment, settling insurance coverage claims, etc. on behalf of Org.
Marketing and Sales.
Attracting target customer attention towards the product is done through marketing and sales to communicate with them the worth and competitive benefit the product provides. The Walt Disney Company And Pixar Inc Case Study Help marketing budget plan is continually increasing considering that they started their repositioning globally and will continue to do so as they are continuously seeking to invest and broaden in high possible growth markets. The spending plan is invested in occasions, print and media ads, public relations etc.
Venture Service. Corporation put their clients at the top and continuously aim to provide unmatchable client service standards. As after sales service is ending up being exceptionally essential to keep customers happy and engaged, they even carry out studies through third parties to learn their customer's feedback and implement it in the positive method to decrease or if possible totally eliminate their consumer problems. By adding a direct support line to call them 24 hours they have actually even more increased the added value of The Walt Disney Company And Pixar Inc Case Study Solution service.
Division.
The Walt Disney Company And Pixar Inc Case Study Solution has diversified market segmentation, based upon its provision of large range of products to a great deal of customers. Enterprise target customer segments can be divided into 3 classifications i.e. The Walt Disney Company And Pixar Inc Case Study Solution IT and Mobile Communications, Venture Customer Electronic Devices and Business Device solutions.
Geographical.
The Walt Disney Company And Pixar Inc Case Study Solution geographic segmentation is based upon two requirements i.e. area and density. Corp serves about 80 countries worldwide with its items offered to Urban as well as Rural areas of the country. The Enterprise is likewise growing its international presence and the company's versatility in locating its plants motivates global expansion of Business.
Demographic.
Company produces items that can be utilized by both females and males. The target clients for Corp IT and mobile communication items have an age range of 18-65 with majority at a young or recently wed life cycle stage. Apart from it, Corp Consumer Electronics are targeted to a consumer sector with an age range of 25-65.
Psychographic.
The psychographic division of The Walt Disney Company And Pixar Inc Case Study Help s based upon the social class and the lifestyle of the customer. Enterprise target consumers on the basis of social class are generally upper middle, middle and working class clients, as Enterprise offer products like cellular phone very little more affordable i.e. Motorola in addition to very little costly i.e. Apple. It provides quality items to middle level consumers at a slightly high rate than others targeting the exact same sector.
Behavioural.
The Walt Disney Company And Pixar Inc Case Study Help majority target consumers have special behavioural characteristics. It has customers with an enthusiastic, stylish and figured out character with moderate level of loyalty towards the brand name. Its consumers have some degree of shift towards other renowned brands i.e. Apple. Most of Corp consumers desire quality as well as expense control. Due to the fact that of its moderate prices with a level of quality, they are attracted towards Business.
Quantitative analysis.
Sales of The Walt Disney Company And Pixar Inc Case Study Solution has actually increased amazingly from 16 billion $ in 1997 to 44.6 billion $ in 2002, and the net profit of.48 billion $ to 5.9 billion $. Digital media is the largest selling classification of Venture with sales of 13.9 billion $, whereas, Telecommunication and Semiconductors sectors both reached 11 billion $ in sales.
Qualitative analysis.
Whereas, the core strength of the company is currently manufacturing but long gone are those days when good items were selling themselves. Kim has currently begun to enhance the marketing activities of Business and extremely soon it will end up being one of its core strength like producing if not much better.
VRIO.
Value.
Organization runs designs, produces and offer a large portfolio of consumer electronic devices. It operates in an exceptionally competitive environment and has actually effectively positioned itself as the maker of quality products. The answer is yes.
Rarity.
As, said earlier that The Walt Disney Company And Pixar Inc Case Study Help operates in a highly competitive environment, which indicates all the companies have comparable products. The answer for rarity is no.
Imitability.
Due to the nature of the market, it is extremely simple for competitors to comprehend the performance of the items and quickly make their own designs. Yes, Corp is just behind IBM in signing up new patents yearly, however the advantage is very short-term in this industry.
Company.
Chairman Lee has totally turnaround Company, from going almost insolvent during the Asian monetary crisis of 1997 to the top 25 company on the planet. Definitely yes there is proper company in the business and the outcomes speak for themselves.
External Environmental Analysis
PESTLE Analysis
Political
Being an international brand spread practically in every nation worldwide, majority of the environments like USA, Europe, China etc., are very conductive for its operations. It deals with some political pressures in less developed countries where law and order circumstance is not excellent. Latin American, African and some Asian countries fall in this classification, where political instability do have a result on The Walt Disney Company And Pixar Inc Case Study Solution operations.
Economic
Buying power of clients is vital for business like Org to grow and be successful. Emerging markets like India, middle-eastern countries etc. offer growth chances, whereas, due to economic crisis even the clients of industrialized countries suffer severely. It is very important for the company to keep an eye on the ongoing economic circumstance of the country prior to entering the market.
Socio-Cultural
Multinational business need to deal with numerous social and cultural issues throughout its operations in a foreign country. Corp has also dealt with lots of problems however have actually embraced to the regional environments of the majority of the nations exceptionally well. It has customized its products, practices, policies etc. accordingly in order to achieve success.
Technological
With an annual expenditure of 2.4 billion dollars in Research study & Development, and with continuous innovative product launches, The Walt Disney Company And Pixar Inc Case Study Analysis is among the top innovative business of the world. With a clear mission to be ahead of the rest when it pertains to technological improvements, Business has actually risen to the no 25 of the leading effective business of the world.
Legal
Each country has their own laws and policies, being a multinational business Venture need to strictly follow those laws in their jurisdictions. Failure to do so, will result in major legal effects. So, it has to study or employ a regional law professional prior to starting its operations in a specific country.
Environmental
With the rising awareness among customers about the ethical & ecological infractions of companies, Corporation has to guarantee that it follows all the security guidelines. Environmental damages, ethical misbehaviors are not appropriate and in some nations the consequences can be very severe. On the other hand it needs to do some Business Social Duty practices to reveal the residents that it cares about their environment and individuals.
Porter's 5 Forces
Risk of Substitution
Threat of replacement for Business's each product category is quite considerable. Running in a very vibrant industry lead the company to face a high hazard of substitution. Elements for high danger of substitution for The Walt Disney Company And Pixar Inc Case Study Analysis Smartphone include the existence of high number of suppliers and Market saturation in industrialized nations, that make the expense of switching for customers practically no. Replacement threats for Organization visual display screen depend on the changing life style of consumers. Clients can switch to watching visuals in the house towards outside activities. In addition to it, Venture printing services products are threatened by the increasing destination of clients towards cloud storage.
Competition Among Existing Companies:
The rivaly among Organization and its close rivals is extreme. The significant factor behind this is the approach of market saturation in various number of product classifications, forcing Enterprise to introduce more ingenious functions in existing products and brand-new innovative items to keep its development. The significant competitors for The Walt Disney Company And Pixar Inc Case Study Analysis samrtphones consist of Apple, Motorola, LG, Nokia, Huawei, OPPO etc.
The Walt Disney Company And Pixar Inc Case Study Solution has a huge supply chain including about 2700 suppliers throughout the world.( Business Sustainability Report, 2016) Supplier's bargaining power for Venture is low as Company runs economies of scale and its orders are of prospective size and worth. These big orders enable Enterprise to work out prices with its suppliers. Due to incapability of Org to build its own software application, it has to outsource its software application advancement to Google, which becomes a prospective supplier of software for Venture, resulting in high bargaining power of Google. In many of The Walt Disney Company And Pixar Inc Case Study Help has a power to negotiate costs, however it provide significant rates to its suppliers to construct a strong supply chain and to have strong relationships with its providers.
Bargaining Power of Buyers:
Haggling power of buyers for numerous variety of product categories of Company is intense. One of the factor leading to the extreme bargaining power is the schedule of a great deal of rivals in nearly each item classification i.e. rivals of Corp Smartphone, with a very little differentiation. The high schedule of providers of Smart devices with minimum differentiation, make the switching expense for buyers nearly no, thus increasing the bargaining power of buyers. Market saturation in most of the product classifications also make the bargaining power of buyers more intense in for The Walt Disney Company And Pixar Inc Case Study Solution. In spite of igh bargaining power Corporation is rather efficient in selling its items at a higher cost than much of its rivals, due to high-end quality item and a reasonable brand image.
Risk of New Entrants:
Risk of brand-new entrants for Enterprise is quite low. Among the major factor for low risk of brand-new entrants is the high competition in the market. The requirement of big quantity of capital to go into in the market is likewise among the potential barrier to entry. Together with it, requirement of big knowledge and research study and advancement expenditures for survival in the industry also make new entrants unwilling to enter in the market. Market saturation is likewise among the barrier of entry in technology market. High bargaining power of providers require the players in the industry to charge as low costs as possible and this can just be achieved by production performance. Brand-new companies, in bulk cases, do not have the production effectiveness, for this reason increasing the risks for entryway in the technology market.
Competitive Analysis
Org's high item diversification offers it distinction from its rivals. It is among the 3 leading brand names by market share. Unlikely to its close rivals consisting of Sony, Intel and Nokia, who focus bulk on a single item classification with Sony concentrating on consumer electronic devices, Nokia on cell phones and Intel on chips, Company had a substantial R&D spending on all of its item categories which make it possible for the business to make potential income from sales of nearly all of its products. (See Display) Nevertheless, due to the broad item variety the business faces high variety of competitors.
The business ranks initially in 4 item classifications i.e. DRAM Chips, LCD Displays, Big Screen TVs and Microwave, in regards to international market share, amongst 8 different item classifications. Company was the international leader in making DRAM, SRAM and NAND flash chips. Although, Corp incomes from chips was less than Intel but its profits from chips was growing quicker than Intel and has actually grown near the profits levels of Intel, as given in the case Exhibit 2.
In addition to the chips Organization mobile market was likewise growing at a high rate than its competitors i.e. Motorola and Nokia. Corp's cell phone's sales development was 51% as compare to Motorola with just 4% and Nokia with zero sales growth. The significant reson behind Organization's high growth despite of greater prices than Nokia and Motorola was the company's high-end quality cell phones.
Venture was likewise reaping the benefits from increasing market share of high end LCDs as given in case Exhibition 3. The major factor, making the business enable to obtain the opportunity is its mass production at low expense. Sony was the greatest competitor for The Walt Disney Company And Pixar Inc Case Study Help in LCD market, however, it had actually likewise started joint endeavor with Enterprise in 2003 for LCD producing, decreasing the competitors for Org.
Porter's Competitive Method
Low Cost Leadership technique of porter is fully executed by Business the way they accomplish economies of scale by strengthening their core proficiencies of production. Even to the point that their rival SONY decided to form an alliance with them to manufacture for them, since they were not able to compete with them on low cost. Differentiation is another strategy well carried out by Org by continuous financial investment in the R&D and remaining ahead of the competition. They constantly bring something brand-new and ingenious whether it's a service or an item.
Alternatives
Alternative Option 1
The Chief Marketing Officer (CMO) of The Walt Disney Company And Pixar Inc Case Study Help would develop a brand-new brand image by targeting the younger generation of the particular nation. As, especially mobile phones of Venture are popular amongst the younger group.
Pros
1. It is the best technique to construct Client Lifetime Value (CLV) by creating a long-term relationship with customers. Develop commitment through delivering value and reap the benefits for long-lasting, as research has actually revealed it is much cheaper to retain existing customers than to draw in brand-new ones.
2. Another pro of this alternative is that word of mouth spread faster among more youthful individuals and which in turn will bring in new consumers for my items.
Cons
1. Old customers who were associated with Organization prior to may not like this brand-new image the company is attempting to portray.
2 It will incur additional expenditures to rearrange some products and it might not even bring success as the trends alter extremely quickly amongst the more youthful group.
Alternative solution 2.
It would be done by organizing training workshops throughout which importance of marketing will be taught and numbers will be provided. Marketing environment should be produced internally first as genuine marketing starts inside the corporation.
Pros
1. Its pro will be that all the marketing approach supporters will come out and also the opposite ones.
Cons
2. Its con can produce a very unhealthy environment in the workplace, as individuals frequently withstand modification because they fear it.
Determine the very best option
Alternative is the finest as it clearly has more pros since as soon as a Consumer Lifetime Worth is built the business will profit from it till that client is alive and has buying power. Plus, our target customers are the more youthful generation which are bound to live longer than the existing aging individuals. Nevertheless, Corporation's main objective is to develop loyalty amongst its customers and make them bought it from them and even purchase their various items too.
Application Plan
• Targeting younger generation through social marketing, developing a relate to them like Pepsi finish with music. And set the expectations realistic and attainable.
• A team including finest marketing and sales specialists need to be assemble, and both views should be considered prior to securing the resources needed to execute the strategy.
• Thorough communication of the strategy need to be done as it is extremely essential for everyone to be on the same page to make it work.
• Jobs and timelines should be develop and interacted appropriately to each individual responsible.
• The manager need to use a control panel which shows the development of all the jobs which have actually been done or about to be done and by whom.
• The manager should keep an eye on and keep a consistent examine the private and total efficiency.
Because any brand-new trend or policy might come in due to which all the things currently planned have actually to be changed, • Everyone need to be prepared to adjust midway. It's much better to have contingency strategies already prepared.
• At the end of the project the manager should interact the results and if successful need to commemorate with the group.
Spending plan
This change the budget plan allowance of lots of managers and various countries were dissatisfied and argued however the analysis done by the program was precise and revealed figures like North America and Russia growth prospective warranted a 35% allocation while they were receiving 45%. It actually helped to fairly distribute the resources and catch more customers by investing more on advertisements on the high development capacity areas of the world.
Conclusion
The Walt Disney Company And Pixar Inc Case Study Solution is a leading 25 company worldwide now and plans to get ahead of Sony who sits presently at no. 20. Its continuous financial investment in R&D and innovative practices have propelled them to brand-new heights but for them its' just the start and they want to be among the leading 3 brand names worldwide. They completely turnaround from almost going bankrupt throughout the Asian Financial Crisis to a world popular brand, understood for quality and innovation. Their value chain and their core proficiency their production capability, along-with international brand name image building have seen their sales go from 16 to 44.6 billion $ from 1997-- 2002. With further growth in China and other emerging markets those numbers will only increase further in the future. Their marketing efforts need to be directed towards younger market in the middle of the internal arguments about marketing and must develop Client Lifetime Value as it will not just provide benefits now however will continue to gain it till the customer life time. As the expense of maintaining the consumer is much cheaper than attracting a brand-new one.
