The Walt Disney Company - Five Forces Analysis

The Walt Disney Company - Five Forces Analysis

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Intensity of Existing Rivalry

Switching costs are high (The Walt Disney Company) Please edit this page to add a description…
High customer loyalty (The Walt Disney Company) Please edit this page to add a description…
Relatively few competitors (The Walt Disney Company) Few competitors mean fewer firms are competing for the same customers and resources, which is a...

Bargaining Power of Suppliers

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Volume is critical to suppliers (The Walt Disney Company) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...

Threat of Substitutes

Substitute product is inferior (The Walt Disney Company) An inferior product means a customer is less likely to switch from The Walt Disney Company to...
High cost of switching to substitutes (The Walt Disney Company) Limited number of substitutes means that customers cannot easily switch to other products or...
Limited number of substitutes (The Walt Disney Company) A limited number of substitutes mean that customers cannot easily find other products or services...

Bargaining Power of Customers

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Large number of customers (The Walt Disney Company) When there are large numbers of customers, no one customer tends to have bargaining leverage....
Low buyer price sensitivity (The Walt Disney Company) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product....
Product is important to customer (The Walt Disney Company) When customers cherish particular products they end up paying more for that one product. This...

Threat of New Competitors

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Industry requires economies of scale (The Walt Disney Company) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
High capital requirements (The Walt Disney Company) High capital requirements mean a company must spend a lot of money in order to compete in the...
Strong distribution network required (The Walt Disney Company) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
Advanced technologies are required (The Walt Disney Company) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Strong brand names are important (The Walt Disney Company) If strong brands are critical to compete, then new competitors will have to improve their brand...
Geographic factors limit competition (The Walt Disney Company) If existing competitors have the best geographical locations, new competitors will have a...
Customers are loyal to existing brands (The Walt Disney Company) It takes time and money to build a brand. When companies need to spend resources building a brand,...
Entry barriers are high (The Walt Disney Company) When barriers are high, it is more difficult for new competitors to enter the market. High entry...

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