Porter’s Five Forces – Disney

Degree of Rivalry
– Direct competition between Pixar / Dreamworks
– Themeparks etc
– Brand must always make animation – foundations
– Disneyland/world unique
– Most famous animation brand
– Exit barriers, cant leave a market without affecting other products

Supplier Power
– Due to high prices charged on merchandise by Disney, suppliers up prices
– Lots of different revenue streams, high cost to switching suppliers
– High amount of merchandising
– Supplies to parks, tv, merchandise, shows etc

Threat of Substitutes
– Buyer has low differentiation between companies
– Buyers switching to Dreamworks
– Low threat from other film companies – always a market for animation
– TV Channels

Threat of new entrants
– 2 Huge superpowers in the market in Pixar and Dreamworks
– Costs a lot of money to create
– Disney Dominates the Market
– Disney TV

Buyer Power
– Hugely established brand
– Lots of wings of the company, involved in lots of markets
– Lots of revenue
– Household Name
– Lots of Controversy

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2 Comments

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2 responses to “Porter’s Five Forces – Disney

  1. i am a student of Hotel management and i sudied about Porters Five Forces , and reading this post its important for marketing.. 🙂

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