P1(e) Competitors
Meaning: Any person or entity which is a rival against another. In business, a company that has the sale industry or a similar industry which offers a similar product or service.
One to more competitors can reduce the prices of goods and services as the companies attempt to gain a larger market share.
Purpose: The purpose of this section is to understand what other competitors or other big media companies, how they affect the profits of The Walt Disney company.
The Walt Disney Company, as a multinational entertainment company, it faces a number of competitors in its various segments. Such as Viacom Inc(VIAB), Time Warner Inc. (TWX), Twenty-First Century Fox (FOXA), CNS and Comcast (CMCSA).
One to more competitors can reduce the prices of goods and services as the companies attempt to gain a larger market share.
Purpose: The purpose of this section is to understand what other competitors or other big media companies, how they affect the profits of The Walt Disney company.
The Walt Disney Company, as a multinational entertainment company, it faces a number of competitors in its various segments. Such as Viacom Inc(VIAB), Time Warner Inc. (TWX), Twenty-First Century Fox (FOXA), CNS and Comcast (CMCSA).
This is a screenshot about the competition of broadcasting. The company has to compete with other companies on media, television stations, online video services and video games. Companies like : Viacom, Timewarner, 21ST Centuty Fox and Comcast.
As Walt Disney Company is a multinational company, it doesn't only focus on media and films, but also hotel and resorts, theme parks and studio entertainment. Therefore, the range of competitors is quite large. They have different competitors in different competition.
I have found some informations from the 2015 Disney annual report.
(https://ditm-twdc-us.storage.googleapis.com/2015-Annual-Report.pdf)
I have found some informations from the 2015 Disney annual report.
(https://ditm-twdc-us.storage.googleapis.com/2015-Annual-Report.pdf)
Disney's Media Network business compete for viewers primarily with other television and cable networks, independent television stations and other media, such as DVD and Blu-ray formats- video games, and the internet. Also with the sale of advertising time, its broadcasting operations, some of its cable networks and its television and radio stations. They also have advertisements from newspapers, magazines, billboards and the internet.
This is a screenshot of the competition of theatrical investments. It also shows the Studio Entertainment businesses compete with all forms of entertainment. Many companies also produce and distribute theatrical and television films, the company do not only compete for television programming services and produce live theatre, but also compete to hire talents, story properties, advertisers and broadcast rights with other companies.
This is a screenshot of the competition of theme parks and resorts, the Walt Disney has to compete with other forms of entertainment, lodging, tourism and recreational activities. However, the profits are very hard to control, it might be influenced by various factors, such as economical conditions like business cycle.
Here is a screenshot of the comparable of each company. These are the competitors of The Walt Disney Company. From this screenshot, we can see that there are comparable of all the companies. From the SMM, we know that The Walt Disney Company is quite high among other company however is a bit lower than Comcast Corp.
(http://marketrealist.com/2014/01/disneys-competitors/)
Advantages/Disadvantages of competition
Advantages:
- Competitors will invest in marketing and the combined marketing efforts of a number of competitors will increase the development of a nascent market. When a large company enters a market, it shows the market in the minds of many who had not been paying attention to it before.
- Competition encourages a team, many companies start to work harder a bit after they have successfully taken control of a market.
Disadvantages:
- Competition is challenging. First when the company has strong competitors, it will lose business to them easily.
- Sales costs increase, time to close and makes it harder to grow rapidly.
- Competitors will also spread fear and doubt in the marketplace.
- Competitors can also strike business deals with powerful allies and gatekeepers who can make it hard and at time impossible to enter certain parts of the market.
- Competitors will also impact your fundraising and exit plans. When you have a competitor that is raising capital, it will often cause an entrepreneur to think they need to raise capital to compete.
From the 2015 annual report, it mentioned the advantage of increasing competitive pressure, it might reduce the revenues and increase the cost. From this screenshot, it shows all the disadvantages given to Walt Disney Company from other company, which shows also the disadvantages of competitors.
In here, we know that competitors will decrease the viewers of the company's broadcast and cable networks and stations, which reduces the profits. The company also compete to obtain creative and performing talent, sports and other programs, because they have to produce interesting movies and home entertainments to attract audiences in order to maintain the revenue and increase the profits.
Although Walt Disney Company has theme parks all over the world and mainly in developed countries,for example Hong Kong, Shang Hai, Japan etc, which can increase the profits because people have better living, and has a higher spending power, however, there are also different theme parks who compete with The Walt Disney for guests, entertainment, tourism and recreation activities. People have a lot of choices to choose, and they compare different theme parks whether they feel interesting in. So, it reduces amount of guests and therefore decreases the profits.
The company compete not only the creativity and entertainment, but also the media licenses, publisher and retailers of characters, because the customers or audiences will easily get mixed up if a character has the same name in different movies from different companies, and in most of the famous movies, the name of the character is very recognising, therefore, when they are planning all the details of the movies, they have to fight for the publishers and retailers of the character. All the movies that will be published have to get a licensors, so in order to publish it as soon as possible and smoothly, the company has to compete for the licensors too.
Walt Disney Company is a interactive media company, it also does all sorts of online games, radio stations, and mobile games in order to enhance their popularity and profits. So, they they have to compete again for creativity, so attract the attentions of the audiences, with this they have to fight got publishers of console, because every game or other type of home entertainment requires a publisher of console, so it is published legally.
In here, we know that competitors will decrease the viewers of the company's broadcast and cable networks and stations, which reduces the profits. The company also compete to obtain creative and performing talent, sports and other programs, because they have to produce interesting movies and home entertainments to attract audiences in order to maintain the revenue and increase the profits.
Although Walt Disney Company has theme parks all over the world and mainly in developed countries,for example Hong Kong, Shang Hai, Japan etc, which can increase the profits because people have better living, and has a higher spending power, however, there are also different theme parks who compete with The Walt Disney for guests, entertainment, tourism and recreation activities. People have a lot of choices to choose, and they compare different theme parks whether they feel interesting in. So, it reduces amount of guests and therefore decreases the profits.
The company compete not only the creativity and entertainment, but also the media licenses, publisher and retailers of characters, because the customers or audiences will easily get mixed up if a character has the same name in different movies from different companies, and in most of the famous movies, the name of the character is very recognising, therefore, when they are planning all the details of the movies, they have to fight for the publishers and retailers of the character. All the movies that will be published have to get a licensors, so in order to publish it as soon as possible and smoothly, the company has to compete for the licensors too.
Walt Disney Company is a interactive media company, it also does all sorts of online games, radio stations, and mobile games in order to enhance their popularity and profits. So, they they have to compete again for creativity, so attract the attentions of the audiences, with this they have to fight got publishers of console, because every game or other type of home entertainment requires a publisher of console, so it is published legally.
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