The main objective of any company is to expand its business in order to reach its defined vision. Walt Disney has a vision of being one of the best in the world within the field of entertainment and information production and provision. Currently, Walt Disney stands among the top best in the production of information and entertainment in the world with most of its products being consumed globally (David, David & David, 2016). It is due to its determination to fulfill its defined vision that Walt Disney competes favorably in the world's market. While running the business, Walt Disney needs to enhance its performance in order to do even better in its operations that before. Zulkarnain, Wahyuningtias, and Putranto (2018) argued that despite the large size and establishment of Walt Disney Company, proper strategic measures have to be put in place in order to enable the company to overcome the unforeseen challenges. This ensures that the company is able to adapt and manage any unforeseen challenges with a lot of ease. Walt Disney Company, therefore, needs to adopt an alternative strategy. It, therefore, needs to make use of the quantitative strategic planning matrix as its new tool for strategic management.
Quantitative Strategic Planning Matrix
Quantitative strategic planning matrix refers to an advanced approach of strategic management tool for evaluating other possible sets of strategies. Zulkarnain, Wahyuningtias, and Putranto (2018) argued that Quantitative strategic planning matrix provides a method for analytically doing a comparison of an alternative set of actions. It makes use if prior stage details in a manner that is organized to compute the score of a variety of strategies in order to find the strategy that matches the organization the best. Quantitative strategic planning matrix comes under a stage that is referred to as the third stage of strategy formulation (David, David & David, 2016). This stage is normally referred to as the decision stage and is the final stage. The advantage with quantitative strategic planning matrix is that it never compels the strategist to extract information from the input stage or matching stage. This, therefore, means that the evaluation is not based on the assumption. For the case of this paper, the input stage comes from the internal factor matrix and the matching stage comes from the SWOT analysis.
The input stage encompasses the use of both internal and external information. The Internal Factor Evaluation Matrix tool is used in this stage to perform the analysis of data (David, David & David, 2016). Appendix C represents the Internal Factor Evaluation matrix that is used to perform data analysis.
The matching stage is the processes by which a company combines its internal and external factors to come up with an effective strategy. The Strength, Weakness, Opportunity, and Threat (SWOT) matrix tool is used in this stage. Zulkarnain, Wahyuningtias, and Putranto (2018) argued that the matrix defines the position of a company and hence strategies according to its position. It helps to come up with four kinds of strategies: SO strategies which uses the internal strength of the firm to take advantages of external opportunity, WO strategies which aids at enhancing internal weakness using external opportunity, ST strategies which make use of a firms internal strength to mitigate the external threats and WT strategies which uses tactics to overcome internal weakness as well as external threats (David,David & David, 2016).. Appendix B shows how the Strength, Weakness, Opportunity, and Threat (SWOT) matrix tool has been used to come up with various strategies.
This is the last stage of formulating a strategy. Zulkarnain, Wahyuningtias, and Putranto (2018) argued that this stage requires Quantitative Strategic Planning Matrix (QSPM) to help in defining the most appropriate alternative strategy. Disney undertakes diversification strategy since its main focus is entertainment. The opportunity has 5 factors that are likely to influence the strategies to be used. It is evident from QSPM that the world's demand for children's video products is high. From Appendix A, there are four key opportunity factors that influence the company's strategy. The most influencing factors are technological advancement and increase in consumer spending. The QSPM gives priority to technological advancements (David, David & David, 2016). The sum of the Total Attractive Score for technological advancements is higher than that of the increase in user spending habit hence indicating the attractiveness of the strategy as shown in appendix A.
Despite its large size and establishment, Disney Company needs to implement various recommendations in order to enhance its performance and hence compete favorably in the market. One of the recommendations is to use technology to enhance the quality and speed of its content delivery to a wide market. Technological advancements present to Disney Company an opportunity. The company should embrace the use of technology so as to increase the value of its product in order to compete favorably. The company will, therefore, gain an advantage in competing with others thereby boosting the customer preference towards its products.
The next recommendation is for the company to expand and open up new markets due to the agreements by the governments to trade together. Implementation of new technology together with the free trade by the government will increase the business's profit margin. The company will, therefore, enlarge its market hence serving a large audience. This will also help the company to market its name in the process. If well put into practice, the opportunity may help Disney to have a significant impact in its operation.
Lastly, it is recommended for the company to enhance customer service in its service delivery. This will make the cinema to increase its sales due to the increase in the number of customers who willing to increase expense on entertainment. As a result of improvement in technology, the company has an opportunity to put its investment in online contents by availing its online services demand. The move will enhance sales and therefore giving it a strong competitive advantage.
David, M., David, F. and David, F. (2016). The quantitative strategic planning matrix: a new marketing tool. Journal of Strategic Marketing, [online] 25(4), pp.342-352. Available at: https://www.tandfonline.com/doi/abs/10.1080/0965254X.2016.1148763?journalCode=rjsm20 [Accessed 19 Jun. 2019].
Lashgari, S. and Antucheviciene, J. (2014). USING QSPM AND WASPAS METHODS FOR DETERMINING OUTSOURCING STRATEGIES. Journal of Business Economics and Management, [online] 15(4), pp.729-743. Available at: https://www.tandfonline.com/doi/abs/10.3846/16111699.2014.908789 [Accessed 19 Jun. 2019].
Zulkarnain, A., Wahyuningtias, D. and Putranto, T. (2018). Analysis of IFE, EFE and QSPM matrix on business development strategy. IOP Conference Series: Earth and Environmental Science, [online] 126, p.012062. Available at: https://iopscience.iop.org/article/10.1088/1755-1315/126/1/012062/meta [Accessed 19 Jun. 2019].
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