The Walt Disney Company – Direct to Consumer Business Segment (Disney+ & Hulu)
Expansion into Mexico’s SVOD Market
Threats:
– Competition such as Netflix and Amazon already have expanded to over 190 countries
– Political corruption very prominent
– Mexico has a very low poverty line
– Need to cater to Spanish language & culture
– Digital infrastructure/ connectivity to the internet still growing within the country
Weaknesses:
– Currently Disney+ & Hulu currently or will only operate within the United States
– Subscriptions to services are a luxury item
o Countries with negative economic conditions will boast less buyers
– Less amounts of original content available compared to Netflix & Amazon
Opportunities:
– Will be the only streaming provider of all of its owned content
– Can package Hulu and Disney+ together as a bundle for a cheaper price to draw more customers
– No major government regulations regarding streaming content
– One of the largest Latin American streaming countries
– SVOD industry projected to increase revenue by $150 million by 2023
Strengths:
– Major brand recognition for the company as a whole as well as the entertainment brands owned (Marvel, Lucas Film Ltd., Pixar, etc.)
– Extremely large and diverse portfolio
– Prior experience with global expansion within other business segments
– Competitive edge for subscription prices of both Disney+ & Hulu
The Walt Disney Company – Direct to Consumer Business Segment (Disney+ & Hulu)
Expansion into Mexico’s SVOD Market
Threats:
– Competition such as Netflix and Amazon already have expanded to over 190 countries
– Political corruption very prominent
– Mexico has a very low poverty line
– Need to cater to Spanish language & culture
– Digital infrastructure/ connectivity to the internet still growing within the country
Weaknesses:
– Currently Disney+ & Hulu currently or will only operate within the United States
– Subscriptions to services are a luxury item
o Countries with negative economic conditions will boast less buyers
– Less amounts of original content available compared to Netflix & Amazon
Opportunities:
– Will be the only streaming provider of all of its owned content
– Can package Hulu and Disney+ together as a bundle for a cheaper price to draw more customers
– No major government regulations regarding streaming content
– One of the largest Latin American streaming countries
– SVOD industry projected to increase revenue by $150 million by 2023
Strengths:
– Major brand recognition for the company as a whole as well as the entertainment brands owned (Marvel, Lucas Film Ltd., Pixar, etc.)
– Extremely large and diverse portfolio
– Prior experience with global expansion within other business segments
– Competitive edge for subscription prices of both Disney+ & Hulu SWOT and Strategic Objectives paper
Hide Assignment InformationInstructions
Strategy project: Individual SWOT and strategy generation paper (14% of course grade)
Resources:
SWOT to TOWS assigned readings
Assignment Overview: This week, each individual will use the group’s SWOT matrix to generate strategies for overcoming business risks and exploiting business opportunity in the recommended country. You have already developed a competitor strategy, so the focus this week is on other business risks and opportunities and how your client might use its strengths and weaknesses to gain strategic advantage (corresponds to Section 8iii of Business Plan Template).
When the SWOT matrix is used for strategy generation, a TOWs matrix is initially generated to organize the SWOT data into an expanded matrix (TOWs matrix) . The TOWs is an organizing tool to ensure that the strategies developed will effectively utilize the client’s strengths to mitigate the most critical risks and exploit the most important opportunities. The TOWS matrix is merely an expanded SWOT matrix with quadrants to be used for strategy idea generation, as described in this link:
https://www.driveyoursuccess.com/2011/09/strategic-business-planning-use-tows-to-move-swot-to-an-action-plan.html
You can see an example of strategy formulation from TOWS in this link: http://www.volunteerhub.com/blog/the-tows-matrix-putting-a-swot-analysis-into-action/
rubric for individual SWOT-TOWS Strategy is here and posted in the module ‘Grading Guidelines and Rubrics.’
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Assignment Objectives: The objectives are to use the SWOT data to propose specific business strategies (TOWS strategies) that will (1) mitigate the identified risks (threats and weaknesses) for your client company’s entry into the selected country; and (2) exploit the identified external opportunities.
Step One: Preparation: This is your idea generation step and reflects your primary analysis. Develop the TOWS matrix, specifying the risk mitigating strategies and the opportunity exploiting strategies needed in each of the TOWS quadrants.
For example, if your previous analysis identified political ties as necessary to compete in this country (external Threat), but your client does not have those ties (internal Weakness), consider WT mitigation strategies (TOWS quadrant WT). Perhaps a specific type of partner (politically connected/experienced) or some specific activity (like political lobbying) might mitigate this risk for your client.
Similarly, for the primary external opportunity support factors for this country, specify a strategy that might leverage your firm’s Strengths (quadrant OS strategies). For example, if your PESTEL analysis found an opportunity support factor in the country’s positive attitudes toward U.S. companies, consider how an OS strategy might leverage the U.S. identity of your firm (its Strength) in order to exploit that opportunity (e.g., perhaps by sponsoring an athletic event and/or by using product packaging that highlights U.S. origins or culture)
For each of the TOWS quadrants, identify potential strategies that will help your firm to operate successfully in this external environment of specific O’s and T’s. Limit the potential strategies to no more than 3 in each quadrant of the TOWS matrix, focusing on the most important threats to be mitigated and opportunity factors to be realized. This summary matrix should be included as an appendix to the formal paper.
Step Two: Write a formal paper explaining your strategy recommendations and referring to the TOWS data on which those recommendations are based.
Paper Assignment Requirements/format:
Introduction. After the statement of purpose, the Introduction to this paper should be the same as in your team’s week 6 paper (updated with any feedback), PLUS a very brief description of the target Buyer and the size and growth of the target market (from your team’s week 6 paper, updated with any feedback).
2. The Body of the paper (10-12 pages) is solely your own writing:
List those external Opportunity and Threat factors that you consider the most important and therefore will address with recommended strategies.
Recommend your strategies, explaining the rationale for each and why you consider the recommended strategies the most critical/important.
The TOWs matrix should be in an appendix, and you can refer to it, but your text should stand alone with sufficient written explanation for your strategy ideas and recommendations.
Propose mitigating strategies for country and industry Threats;
Propose exploiting strategies for Opportunity and Opportunity Support factors.
Write a Conclusion to your analysis that summarizes all the strategic actions you are recommending to mitigate risk and exploit opportunity, including the competitor strategy previously agreed upon by the group (this summary statement of competitive strategy will be the same for all group members, taken from what the group has already developed).
3. Include :
Title page with your name
Approximately a 2 page Executive Summary that summarizes the entire paper (including the introduction materials)
Table of contents
*The body of the paper (starting with the introduction) should have page numbers, starting with page one.
Reference list, including proper APA format for all in-text citations.
The SWOT/Tows matrix as an appendix.
Post the assignment in your individual assignment folder AND in the group locker by the end of the week and title it “SWOT and TOWS Strategies.” The team will proceed with next week’s assignment, using all individual members’ analyses, without waiting for faculty feedback/grading.
Where you are now: With the completion of this assignment, you have addressed all risks and opportunity and opportunity support factors. Each team member has now recommended specific risk mitigation and opportunity exploitation strategies that will help your firm optimally operate in country, and the team has previously agreed upon a competitive strategy for operating in country. The Team must now agree on which strategies to recommend from these individual member analyses. Once the team has agreed on the strategies that must be implemented, the team should update the draft business plan with these recommended strategies (constituting the last two bullets of section 10, and sections 11 and 12 of the business plan template).
Looking ahead: Next week, the team will develop and compare two alternative entry strategies (business structure and organizational structure) that will help your firm to realize the desired business strategies you have developed in this TOWS analysis., . A corporate level entry strategy consists of both a business structure (the entry vehicle) and an organizationalstructure for how your firm will operate in country. You will want to design an entry strategy that will be best at implementing the desired risk mitigation and opportunity exploitation strategies..
Note: Some of the risk mitigation strategies that individual members have developed here may lead directly to a type of entry vehicle ; e.g., if the country requires a joint venture with a local firm, that entry barrier has to be mitigated with a specific vehicle (joint venture is the business structure that is required, and you would identify the type of partner and define the partner responsibilities in an organizational structure).
Other mitigation strategies may lead less directly to an entry vehicle. For example, if team member(s) have determined that a local presence will mitigate some political risk and/or mitigate a competitor’s in-country advantage, the team may consider what type of business structure (entry vehicle) could best provide that local presence (e.g., an alliance with a local firm, a contract with a local distributor, hiring locals to staff a branch sales office).
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