Disney Resources and Capabilities Disney

Disney Resources and Capabilities

Disney is a leading player in the entertainment industry, taking most pride in its ability to offer entertainment products and services to consumers in all age categories. Additionally, the company's success is also attributed to its ability to diversify its products and services to include a multitude of elements, from motion pictures and clothes to toys and amusement parks. Additionally, the primary reasons for Disney's success are constituted by the company's strong reputation in the field of quality entertainment and the strength of its brand, but also a wide and vast managerial background. To summarize, the primary Disney resources and capabilities could be introduced as follows:

A few of the fundamental resources that Disney shares across these arenas are the Disney name and legacy, the library of films and Disney's cast of animated and real-life characters, capabilities in the creation and management of world class entertainment, and service management expertise (case).

Another specific resource is constituted by an increased access to financial resources. The strong financial highlights of Disney constitute the important resource which allows it to follow and attain its organizational objectives, and they are possible through the combination of high quality products and services, a wide array of products and services, as well as an international expansion of the company. The organiztaional executives generally argue that one of their primary capabilities is that of being able to generate high quality entertainment services within imposed financial limitations. This belief is however relative since the company does in fact possess large financial resources. Disney's net profit margin for 2010 for instance has been of 11.3, whereas the industry average was of only 10.4 (Money Central, 2010). This specifically means that the organization is more profitable than the average players in the entertainment industry.

Additionally, the affordability of the Disney products and services is also relative. While in the economically developed countries in the western hemisphere, the Disney products and services are affordable and part of every day life, within the less economically developed countries, the Disney products and services are less affordable; here, they represent social statements and signs of wealth, which integrate an overall experience, rather than a simple product or service.

All in all, the Disney capabilities and resources become mixed to create a series of organizational strengths, which, among other things, include the following:

Innovation and commitment to high quality

Brand strength and customer loyalty to the brand

The ability to create experiences, rather than just products and services

Large size of the corporation, which integrates extensive financial and human capitals (both labor as well as intellectual)

The ability to serve the entertainment needs of various age groups

A well developed strategy of differentiation which offers it vast competitive advantages over the competitors in the industry (MBA Tutorials, 2009).