Changes in consumers, supplier, competitors and distribution channel have both positive and negative effects on the company. Regarding the PESTEL framework, the economic factor is the most important element in the Disney Company as high growth of film production rate has let to increase in levels of employment due to high demand by the consumers. Politically, the board members of the company lobby with government officials in granting permission in other countries to open their branches extensively in various countries. In bringing up products in the market, the company consider various sociocultural factors especially those that directly affect consumers, such as age, socioeconomic class, religion, ethnic diversity, cultural norms and values. These factors vary in different countries.
For further improvement technological factors have been applied in the company through the production of new products that suit the current technology, new themes in the film production have been incorporated to enhance consumption. Through all the inventions in productions, ecological factors have been adhered to as the company ensures the working environment is conducive and propel toward achieving economic growth and also ensures there is no harm in the natural environment due to pollution. Legally, the company ensures that all its operations are in line with the laws and rules of the country it operates.
According to the five forces model in the film production industry, there is a mutual harmony in the existence of various competitions that affect production. In Disney Company, there is a balance of interest in the bargaining power of consumers and supplier. The balance comes in whereby suppliers put into consideration the needs of the consumers like affordable pricing of the packages and ready availability. As the consumer bargain for affordable prices, the suppliers should consider the aspect of making a profit out of the product. There is also an improvement on products from the customer’s feedback in order to outdo the competitors. Improvements can be done on quality and aftersales services. The company has created substitute products by adding various business segments and ideas; this has been done to block all avenues that could be infested through the entrance of new investors
There are various strategic groups in the production industry. They include Disney, six flags, Lego land, Universal, Puy du fou, Europa Park, Tivoli, Wanda city and HK Marine Park. The competition bases on three variables, which are the location, sensation and Theme Park. Disney has both sensation and theme parks and is located in six countries compared to Lego land which is located in eight countries. Lego land, therefore, has an upper hand in making higher profits than Disney makes.
Conclusion
Production industry undergoes a lot of changes and improvement in line with the current trends. On December 14, 2017, Disney Company bought 21st Century Fox media assets, this increased the profitability in the company 21st-century fox is renowned all over the world and has many customers. In 2018 march the company reorganized and created two business segments, which are Direct – to –consumer & International and Disney Parks, Experiences and Products.