1.

Introduction:

As we all know, all the companies in the market are influenced by

lots of factors of the international business such as economic, legal,
political, social, technological factors, etc. The business
environment is the aggregate of all conditions, events, and
influences that surround and affect a business firm. Therefore,
studying international business environment plays an important
role in any companies because it allows a company to analyse its
own problems to find the most effective solutions. In this essay, we
will focus on the challenge of Walt Disney – one of the biggest
entertainment corporation in the world and how those external
factors affect its successful and failure.

The Walt Disney Company, commonly known as Disney, is an

American diversified multinational mass media and entertainment
conglomerate headquartered at the Walt Disney Studios complex
in California. Disney was originally founded in 1923. The company
established itself as a leader in the American animation industry
before diversifying into live-action film production, television, and
theme parks. Since the 1980s, Disney has created and acquired
corporate divisions to market more mature content than is typically
associated with its flagship family-oriented brands. Although
Disney is one of the most powerful company in the most powerful
sector in the economy: entertainment, it still faces up with many
challenges. One of the challenges of Disney is the presence of its
competitors in the market. In order to success, Disney has to deal
with entertainment, which includes the preferences and tastes of
customers in all over the world.

Usually, the successful company like Walt Disney deserve attention

and this type of tissue is not a big issue for a successful company.
When its competitors found a better way to provide sports
program at a very low price to the consumer, Disney did not pay
attention to maintain this technology. This is the main reason
Disney lost its youth. Disney also faces challenges from its
competitors who was strong in the market. The Walt Disney has
focused on providing entertainment programs according to the
taste and preference of the customers. If the companies
management does not focus on the changes in the taste of the
customers, it will easily leading to its downfall. It is the duty of the
company to determine its customers taste and preferences to make
its brand more interesting. Disney has faced many criticism in the
market along with that it has also faced motivating response. The
company started making changes to attract a large number of
customers which may be achieved or can never be achieved. Disney
realized that the positive thought have turned into critics. The
company got clear message from the people that the company
started to release irrelevant program. The company also faces
challenges regarding price of its products. The competitors of
Disney are providing the products and programs to the public at
very low price comparing to the cost of product of the company
and they can act as threat for Disney. Disney did not focus on
maintaining the technology and new strategies. The positive
changes made by the management of the Disney has been
converted from positive to a critics. This time was a very hard time
for the Disney to maintain its status how to maintain a good
position in the market along with the constant focus on test and
preference of the customers. In this case, social and technological
factors are the two main causes of this problem.

Social factors affect Disney

The social factors impact The Walt Disney Company directly reflect
the society that The Walt Disney Company operates in. The impact
of social factors is not only important for the operational aspect of
The Walt Disney Company, but also on the marketing aspect of the
organization. These components affect Disney’s remote or macro-
environment through customers’ and workers’ behaviors. In this
case, consumers’ behaviors toward products like movies,
television programs, video games, and amusement parks are
considered. It is also different between classes structure, education,
gender, culture, etc in the society. For example, strategies must
manage customers’ behaviors and expectations regarding the
global business. Considering the situation of its multiple industry
environments, The Walt Disney Company experiences the effects of
these following external factors:

Favorable attitudes toward leisure

Increasing online activity

Increasing cultural diversity

All of these factors can be threats or opportunity of Disney.
Therefore, Disney has to strategically grows its international
business by exploiting favorable attitudes toward leisure. These
external factors increases the chances customers will pay for the
company’s leisure and recreation products. Also, it analysis views
increasing online activity as an opportunity to grow The Walt
Disney Company. For example, higher online product accessibility
can grow the corporation’s revenues from online transactions. On
the other hand, increasing cultural diversity threatens the
attractiveness of Disney’s products, such as movies and television
programs. However, this external analysis is considered as an
opportunity to improve the company’s products to reflect the
cultural diversity of target markets. Overall, these social remote or
macro-environmental factors can help the company grow through
appropriate strategic management that improves the business to
satisfy changes in consumer behavior.

Technological factors in Disney environment

Technology is extremely important to constantly and consistently

innovate, not only for the sake of maximizing possible profits and
becoming a market leader, but also to prevent obsolescence in the
near future. There are multiple instances of innovative products
completely redesigning the norm for an entire industry. Available
technologies are among the remote or macro-environmental
factors that define business capabilities and limitations. This
component analysis of Disney accounts for technologies used in
entertainment and mass media production, as well as those used to
develop Disneyland theme parks and resorts. For example, digital
technologies’ effects on film production are among the factors
that enable the company in the international industry environment.
The following technological external factors determine many of the
strategies and management efforts at The Walt Disney Company:

High R&D rate in the industry (threat and opportunity)

Increasing mobile device use (opportunity)

Increasing popularity of augmented reality (opportunity)

The technological external factor of high research and

development (R&D) rate represents rapid technological
advancement in the mass media and entertainment industries. For
example, companies like Disney are increasingly enhancing their
use of advanced computer generated imaging to provide better
and competitive products. Recently, technological field of
competitors is also developing quickly. If The Walt Disney
Company encounters a new technology that is gaining popularity
in the industry in question, it is important to monitor the level of
popularity and how quickly it is growing and disrupting its
competitors’ revenues. If the company’s profits are great in
number, they may be reinvested into the research and
development department, where future technological innovations
would further raise the level of profits, and so on, ensuring
sustainable profits over a long period of time.

In this case, the company needs to focus on improving the

competitiveness and all needs, focus on the issues of the
organization to get success in international market. It is
recommended that the company needs to continue its innovations
to increase its brand image in the market and to stay in the
competition. Also, the company needs to focus on its mission and
vision as well as identify the threats. The company should release
movies and characters according to the taste and preferences of
the consumer and after that, getting their feedback.

Besides, the company should buy the cheapest system which has
been adopted by the company means to adopt any operation. This
will not only help the company reduce price but it also keep the same
quality. Reducing price with the same quality helps the company to
maintain its customers and bring back those customers which has
been lost to competitors. The company also needs to improve its
organizational culture by providing support for deviation from
family orientation. This support allows the company flexibility for
some part of the international market. People are focusing on
internet more than TV this is the opportunity for Disney to expand
its market. The company could be doing better by considering the
share from acquisitions and by considering the slow growth of the
divisions which includes ABC.

-op,ơ