Walt Disney Pestel Analysis

Walt Disney is a very powerful company that is well known across the world for children’s entertainment and in film. There are four major changes that have a strategic importance on Walt Disney and its success. The changes are Political, Economical, Social & Cultural, and Technological. The elements affecting the external environment for this company are shown in the PESTEL worksheet (Appendix _). Political outlook for Walt Disney is very inconsistent as they manufacture and sell their products in different countries. Government policies for different countries can regulate the content that their brand shows to kids and strict safety protocols for some of their products. Political philosophies are another strategic importance as politics are ever changing and can limit Disney’s global growth. The Economy is the next factor that can have a big impact and ramification on Walt Disney. From 2007-2013, Walt Disney decreased their interest expenses by over $300 million dollars. Disney expands company growth by adding locations in many different countries. Both parties benefit as it is cheap to manufacture products, produce films, and adds millions of jobs in high unemployment countries. Society and Culture plays a big role in the growth of Walt Disney Co. Disney is focused mainly on children 0-10 years old offering movies, cartoons, toys, and adventure parks. Disney advertises well by using television and movie theatre ads, and social media promotions to increase customer awareness. They also own the networks ESPN and ABC, along with other big cable networks that get them introduced to sports and reality televisions fans. Reaching out to these cable network markets, allows Disney to market to parents of young children who love Disney’s products and services. Technology is the last change for Walt Disney and is very important in needing to meet customer’s expectations. Innovations such as 3D movies and new adventure parks keep the customer interested in the product and service that Disney is selling. Technology is changing quickly these days and Disney does an excellent job on staying ahead of the competition. A new process that Disney has forgone was the purchase of “Maker Studios” in 2014.This was a producer of online videos that was growing at a ridiculous rate that caught the attention of management. This was an opportunity that will reach out to a larger customer base so recognition and profits will increase.

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