Netflix Argumentative Essay

1086 Words5 Pages

Introduction
With increased competition from giants like Netflix, Amazon, and Apple, the Walt Disney company has woken to direct threats from tech giants, who, until recently have embarked on a “content” war to draw consumers to their respective platforms. With pressure from stakeholders for continued revenue growth and profitability, the Walt Disney Corporation has taken an unusual approach to beef up its’ revenue lines, namely purchasing already established brands like it did with the Star Wars franchise in 2012 by paying over 4 billion USD. Unfortunately for the Mickey Mouse Company, the growth from Star Wars appears to be dwindling, with overall revenues decreasing with every Star Wars film released. So, what should the Walt Disney company …show more content…

Potential drawbacks to the deal using the Pestel Framework would be political: the recent overturning of net neutrality can have severe impacts on the pricing and access to bandwidth for online video streaming services. Legal: with Disney’s recent buying spree, regulators may try to impose restrictions or the block the deal because of Disney’s expanding footprint. (see exhibit …show more content…

This product is moving from a cash cow product to a star product. Third and fourth products include media and consumer product networks, both of which have low relative market share, high growth. Ideally, Disney maybe should invest in areas where they can move from a question mark to a star. The bottom line, the last product Disney needs in its’ portfolio is an interactive product which has a low relative market share and low overall market share. Twitter fits into this description. Disney should not buy as it is an interactive product, the company should get rid of its interactive products, to denote that the sales growth is 10% and from our analysis of BCG market matrix we have concluded that Twitter is a dog. Therefore, Disney should acquire a Netflix rather than twitter based on our analysis for our sales growth and BCG matrix. (see Exhibit