The internal and external factors matrix that affect Walt Disney’s Theme Parks come from the internal factors evaluation model and external factors evaluation matrix. Walt Disney has good management structures, well thought out plans, and unbeaten brand recognition. The Universal Studios and the Six Flags are doing fairly well but cannot equal the market strength of Walt Disney.
The SWOT analysis is one of the tools the company used for strategy formulation (David, 2015). Some of the strengths, weaknesses, opportunities and threats are in the table below. The main threats were its competitors the Universal Studios and Six Flags (Harvey & Goudvis, 2007). Although they did not pose any danger to the company since their performance indicated that they had so much to do to attain Disney Parks’ success. The business was also new but manageable (Vecchio, 2007).
The Strategic Position and Action Evaluation Matrix measured Disney’s competitive advantages, industry strength, financial strength, and environmental stability as follows:
The SWOT analysis and the SPACE matrices are the best tools for strategy selection due to their simplicity (Harvey & Goudvis, 2007). The two accommodated the most important information for decision making. The company should acquire legal property rights to prevent losses and continue strengthening itself internally. The two matrices provide the management with holistic information that help to prioritize the decision making process.
The QSPM indicate that internal expansion is better than acquiring competitors. The attractiveness figure for domestic development is 6.09 while that of buying competitors has a smaller score of 5.28.
The best decision, according to the matrices, is to concentrate on internal development because the threats are manageable. No competitor can match a strong organization that has invested heavily in itself.
References
David, F. (2015). Strategic management concepts (15th ed.). Upper Saddle River, NJ: Pearson Education, Inc.
Harvey, S., & Goudvis, A. (2007). Strategies that work. Portland, Me.: Stenhouse Publishers.
Vecchio, R. (2007). Leadership. Notre Dame, Ind.: University of Notre Dame Press.