Walt Disney External and Internal Factor Evaluation Matrices

The External (EFE) and internal (IFE) factor evaluation matrices do not only allow a company to properly consider its strengths, weaknesses, opportunities, and threats but also to evaluate their impact on the overall company’s standing. For Walt Disney, both IFE and EFE matrices present mixed results that require analysis. In this paper, these criteria will be analyzed for their relevance, value, and impact on the company’s future.

Although Disney does capitalize on its strengths, yet its competitors possess equal or almost equal advantages. The primary internal strengths that ensure Disney’s short-term success are linked with its brand popularity, the wide range of products, and numerous partnerships, yet its market is overcrowded, and it remains bound to North America (Brown, 2017). The total score of 2.67 is close to the average, showing that the company is only slightly more efficient in utilizing its strengths.

In turn, Disney’s external factors present a more positive image. There are new global markets that can be explored outside of the United States, and its theme parks are highly popular and sought after by investors and customers alike (Brown, 2017). Yet, competition remains very strict, and technological advancements may disrupt the success of Disneyland (Brown, 2017). The EFE matrix reveals a similar picture, as Disney is estimated to have 2.77 in the total weighted score.

In conclusion, the company needs to act upon some of its parameters that lag behind competitors’ achievements. As of now, Disney is in a balanced state, but there is significant room for growth, and failure is not a nonexistent threat in the long term. While this notion points towards stability within the firm, it also indicates that there are significant chances for growth stagnation in the future.

Reference

Brown, L. (2017). Walt Disney Company SWOT analysis & recommendations. Web.