Question

Questions

1. Every five to seven years, Disney can sell the same products to an entirely new audience (i.e., the next generation). The brand acts as a guarantor of the quality of the movie. You can never know what a movie will be like until you have seen it, but a Disney movie for the children always has a certain standard. (30 points)
   1. Is the animated cartoon industry an attractive industry? Base your arguments on the attractiveness of the animated industry through Porter’s framework. Please identify who the suppliers, buyers, substitutes, new entrants, and rivalries are in the focal industry, indicates whether Disney faces a high or low threat from each force, explain why these threats are high versus low? What are the signs of threat for each force?
   2. Pick another industry Disney is currently competing in. Is Industry X an attractive industry? Base your arguments on the attractiveness of Industry X through Porter’s framework. Please identify who the suppliers, buyers, substitutes, new entrants, and rivalries are in the focal industry, indicates whether Disney faces a high or low threat from each force, explain why these threats are high versus low? What are the signs of threat for each force?

Five forces	Animated Cartoon	Industry X
The threat of new entrants
The threat of buyers
The threat of suppliers
The threat of substitutes
The threat of rivalries

Answer 1

Answer:

Assume that Disney is competeing in main stream film (motion picture) industry as well.

	Cartoon industry	Film Industry
	Degree of threats	Reason	Degree of threats	Reason
The threat of new entrants	Moderate	Relatively stable over time in terms of new entrants	Strong	Strong competition in terms of new entrants
The threat of buyers	Strong	Very strong, can easily choose another option	Strong	Very strong, can easily choose another option
The threat of suppliers	Weak	Relatively limited supplies available, low power of bargain by suppliers	Weak	Relatively limited supplies available, low power of bargain by suppliers
The threat of substitutes	Weak	Substitutes are not easily available, this is the first choice	Moderate	Substitutes are easily available
The threat of rivalries	Strong	Steep competition in the industry, very less room for competitiveness	Strong	Steep competition in the industry, very less room for competitiveness