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Oligopoly market
Advantages of oligopoly as a market structure
Advantages of oligopoly as a market structure
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In this highly competitive world, money is one of the most significant factors for people to survive because people use money to satisfy their desires such as clothes, food, and medicines. A company will gain profit from the amount of money that people used, but only profit cannot make company to be sustainable. Hence, every corporation should be concerned about the triple bottom lines which can lead company to be sustainable. The Triple Bottom line or TBL was created by the founder of British consultancy called sustainability, John Elkington since 1994 (economist, 2009). The triple bottom line is separately in three categories, including profit, planet, and people.
Disney pursues vertical integration by increasing its distribution channels for its products in house. This allows Disney to not only have control over the entire product my beginning to end consumer, but it also allows for Disney to increase its profits by cutting costs. An example of this in the case is that Disney creates its own content in-house for its channels like ABC. When Disney first acquired ABC, ABC had deals with Dreamworks, which was a rival company created by a former Disney employee, to finance jointly the cost of developing new TV shows. For Disney, this deal made no sense for them once they purchased ABC because Disney has their own production studio.
EXECUTIVE SUMMARY This report presents an analysis of The Walt Disney Company. It is one of the global’s leading manufacturers and providers of entertainment. The company manages through its five business segments which includes parks and resorts, media networks, studio entertainment, consumer products and interactive. The Disney’s objective is to be one of the world 's leading manufactures and companies of entertainment and information, by using its portfolio of brands to differentiate its content, services and consumer products.
Does hearing the tagline “The Happiest place on earth” takes you on a memory lane of the very first day at Disneyland? The Walt Disney Company, was a dream of the most famous name in the animation industry and the creator of Mickey Mouse, Walt Elias Disney and now the company has estimated net worth of an about 36 billion dollars. (Funamentals n.d.) The company has been running from 1923 till current and I have decided to take the first 43 years (1923 to 1966) in consideration because I wish to tell the reader how the company went from Good to Great under the supervision of Walt Elias Disney.
By that time, “Disney” was already a household word and a multi-billion dollar entertainment empire. At the time of his death, Disneyland, located in Anaheim, California was only eleven years old, but was a huge success. In 1971, The Disney Company began designing what is now Walt Disney World in Central Florida. There are now 35 Disney-owned and operated theme parks around the world, including Europe and Asia.
1 Overview of Company Since it was founded in 1923, Walt Disney Company has become a world-famous entertainment and media company, and its turnover brings it to the second place among global media companies (after Time Warner). It is constantly working to provide people with the most special entertainment experience, and has been adhering to the company 's good tradition of quality and innovation. After years of development, Walt Disney is already a successful transnational corporation and its operations involve in parks and resorts, consumer products, media networks, and studio entertainment these four industries. By the end of September 2017, its media network is the most profitable business which the revenue is 42.6% of the total while
No matter what part of the word you are in, the word “Disney” would probably be recognized by anyone. Why? Because Disney’s influence spans globally. From theme parks, to television networks, to movies, to Broadway shows, it is clear that Disney is “the” multi-media conglomerate. So, when Disney recently announced its intention to purchase 21st Century, a well-known mass media cooperation, it is no surprise that people reacted strongly.
1. Introduction Launched out of a garage workshop in southern California, the first Mattel products were picture frames. Moving on from doll house furniture made from picture frame scraps, the company invested its interest in toys. Barbie and Hot Wheels are among the largest commercial successes Mattel has to its name. Mattel went public in 1960 and joined the Fortune 500 in 1965 with sales of more than $100 million. Mattel went on to acquire brands like Fischer-Price, Tyco toys and American Girl and emerged as a parent company with seven subsidiaries.
Disney witnessed its worse years in business in the following 18 years after Walt Disney’s demise. The company was so depended on Walt Disney for creativity and no one could fill this void. By late 1970s and early 1980s, the film division declines due to the dearth of Creativity. The financial performance of the company deteriorated from 1980 to 1983 and it was surviving solely due to its theme parks, which had remained popular and profitable. Moreover, Disney incurred heavy costs as it was investing in EPCOT and the new Disney Channel.
Market Structure - Oligopoly Oligopoly is a market structure whereby a few number of firms owns a lion’s share in the market. This market structure is similar to monopoly, except that instead of one firm, two or more firms have control in the market. In an oligopoly, there are no upper limits to the number of firms, but the number must be nadir enough that the operations of one firm remarkably influence and affects the others (Investopedia, 2003). The Walt Disney Company is categorized under an oligopoly market structure.
The Walt Disney company does not only have an immense amount of economic power on the American entertainment industry and popular culture, but they have acquired influence across the world. The company has recorded that one quarter of the 45 billion dollars Disney makes annually comes for the international market (Hongmei). It can be said that Disney is one of the best-known companies or brands in the worlds and covers a wide range of markets from films to television programs, to merchandise and publishing not to mention the theme parks. However, the inspiration to expand globally does not completely rest on income and to promote capitalism within the company. In some circumstances the marketing decision is more political than economical.
Disney has been a worldwide phenomenon in terms of creating entertainment for kids and even older adults. Disney has been able to expand and grow its franchises and create new franchises that are capable of become world-wide hits. Its due to its ability to change and manipulate its marketing strategies that allow Disney to appeal to its market. Another main marketing strategy that has allowed Disney to dominate all of its competition has recently been by cross platforming and taking over different companies and implementing them so that they can increase profits.
In hiring, Walt Disney gives the opportunity to all the people who are interested in this job, so it hire people without regard any religion, gender, race, sex, colour and others. In training, it offers the program participants with extensive training opportunities though the “Disney University” as it can surely about that training can make the program participants to improve their knowledge and skills. Besides, it also provides a compliance training which is included Business Standards and Ethics Training. Through this training, it can ensure that all the employees and cast members have some knowledge to act ethically. Furthermore, Walt Disney Company provides all the employees a total rewards package which can help them to have a better life and grow professionally.
In the past four years they have been concentrating on geographic, demographic, and psychographic segmentation to locate their target market. How did they use geographic segmentation? By looking in to region of a country or the world, the market size which is, market density, or climate; that’s how they decided on the locations of Disney's theme parks such as Disneyland and Disney World which are strategically located in the world's most visited places such as, Europe, Japan, India, and of course the United States. On the other hand, they used demographic segmentation by aiming on age, gender, income, ethnic background, and family life cycle; by focusing on that it helped them determine where to place their chain stores called the Disney Store, where to distribute their movies, and even determines what kind of movie they should create next. Whereas for the psychographic segmentation, it is used based on personality, motives, lifestyles and geodemographic; through that this is will help Disney to determine who is going to buy more of their
Disney has become one of the most recognizable globalized companies in the world through theme parks, cartoons, movies, and merchandising in foreign markets.
