Question
Please describe two biggest weaknesses and one opportunity for The Walt Disney Company in a similar format as in the image below.
Strategic Recommendation Weakness #1- Aging demographic With the average age of motorcycle owners increasing from 40-47 since 2001. Harley Davidson needs to attract a new younger generation of Harley owners (Industries Served Sports and Recreation. 2013). In order to accomplish this objective, they should return lo their military heritage and pursue the armed forces personnel market. With almost 50% of enlisted U.S. military service personnel between the ages of 22-30 and armed with discretionary income, this is the ideal target demographic (Department of Defense. 2008). Military service members will relate to the value of an American made machine renown as "the bike that won the war" (Harley Davidson, 2011). Capitalization on this proud and loyal market will not only decrease the average age of the Hurley Davidson customer, it can attract lifelong customers at a younger age. Weakness #2- Premium for Harley Davidson brand Harley Davidson's motorcycle products continue to command a premium retail price relative to competitors' comparable motorcycles. The Company emphasizes quality, reliability, customization and styling in its products and cites these, along with their warranty program, as the driver for the premium price (Investor Relations. 2013). While the quality and price differentiation is legitimate, and may be worth the premium. Harley should keep its prices competitive in order to attract new customers. With the recession putting restrictions on consumer purchasing power, coupled with an aging demographic preparing to exit the market. Harley Davidson should consider cutting costs (by gaining efficiencies) in order to attract a younger loyal customer base. Harley Davidson should consider horizontal integration through the acquisition of the American made Genuine Scooter Company. While growth in the motorcycle subcategory was minimal, scooter sales jumped 37% in 2011 (Ellis. 2011). The affordability of scooters makes them an attractive option to introduce younger generations to the Harley Davidson family : increasing the potential for expansion into other Harley Davidson products. This recommendation not only promotes domestic growth, it is a strategic fit for expansion into international markets, as their demand is for the low cost, user friendly, efficient modes of transportation Genuine Scooter Company offers.
Explanation / Answer
Weakness
1. The variety that the park offers is so huge that it is very difficult for a visitor to visit all the attractions due to high number of visitors round the year
2. It has a very diverse product portfolio with several different theme parks and hotels, which makes centralized management and monitoring very difficult
Opportunity
1. The Disney brand is extremely popular and is the pioneer in the industry of theme parks which can be leveraged to further expand
2. The Walt Disney Company has a vast experience in operating amusement parks and is very popular internationally.
3. With the flourish of the tourism industry, the park can expect to welcome more visitors from abroad.
4. With various promotional offers like annual passes, discounts on hotel stay and multiple visit passes, the park can try to increase its customer base.
5. By introducing new attractions from time to time, the park can attract more and more visitors.
Opportunity
1. The Disney brand is extremely popular and is the pioneer in the industry of theme parks which can be leveraged to further expand
2. The Walt Disney Company has a vast experience in operating amusement parks and is very popular internationally.
3. With the flourish of the tourism industry, the park can expect to welcome more visitors from abroad.
4. With various promotional offers like annual passes, discounts on hotel stay and multiple visit passes, the park can try to increase its customer base.
5. By introducing new attractions from time to time, the park can attract more and more visitors.