The Walt Disney company plans to open a new division focusing on technological advancements to fortify its entertainment ventures. The new division will be called Disney Science & Technology Laboratory, or Sic-Tech Lab. Before development starts, Disney will look at the current organizational environment using the SCOTT analysis tool.

Strengths Weaknesses Internal Factors Strong global brand Technological patents Multitude of licensed characters and franchises High operating capital Large amount of free cash flow Loyal customer base strong diversified portfolio Top management Room for growth/ expansionTop talented employees Market overestimation High operating costs Low foreign exposure New emerging entertainment platforms Capital allocation to Rand (expensive) Opportunities The reads External Factors Expansion into foreign markets Entertainment ace questions Technological partnerships Gaming and digital licensing Creative storyline and new characters Youth content Competition from entertainment conglomerates Economic changes (recession, inflation) Costs of raw materials Wage increases Illegal downloads Of content New market penetration Other theme parks Minimal ‘Millennia’ segment exposure TrendsRising economic expansions in foreign territories (India, China, etc) Mobile gaming arena Cross-marketing with social media Developing unique technology Hiring tech talent Perhaps Disney greatest strengths lies in the following elements: strong brand value, theme park business, strong cash flow, and acquisitions. The Disney Company is arguably one of the strongest brands in the world, thanks to its huge cache of highly recognizable characters.. Disney catalogue of animation, movies, videos, characters, specials, and commercial products is a constant cash flow in virtually any economic condition.Disney’s commitment to constant innovation allows the company to continually adapt to changing tastes and trends while also staying true to core values. This was evident during the asses, when Disney introduced new characters, updated storyline, and integrated computer graphics for modern audiences (Little Mermaid, Aladdin, The Lion King, Beauty and the Beast), and again into the asses decade with Pixie’s computer generated animations Toy Story, Up, and Finding Memo. The Disneyland theme park is the most profitable theme park in the world.The new division, Disney Science and Technology, will continue with innovation, creativity and viable businesses products that deliver solid returns to our shareholders.

Disney relies on top management and talent to carry on the original values with the hire of Robert Alger – who has since acquired three of the biggest entertainment and storytelling companies in the industry, Paxar, Marvel Entertainment, and Localisms. With this leadership vision, Disney will partner with existing tech companies to share advanced techniques and information.Disney is able to pursue these technological advancements through excellent cash leverage, carrying great credit via rand name power an continuous cash flow. The other divisions will generate enough operating income to fund our continuous projects.

Disney shareholders are enjoying record stock prices and dividends. Some of Disney’s weaknesses include tapping into a growing new market, Millennial, a younger segment growing up with technology which includes media-on-demand.Disney currently has a soft market in this category without having a strong presence with this media. Another weakness is the interactive market (gaming and portals) which ties into the aforementioned Millennial market.

The video game and smartened app market is huge and rowing yet Disney has not gained strong sales in either category. Disney biggest opportunity lies in foreign expansion, namely China. China is experiencing explosive growth in their Middle Class, with nearly 300 million Chinese spending for money on entertainment.The Chinese movie segment is growing as more people have disposable income. Disney has aspirations for its Hong Kong resort and more possible theme parks. Success in China can translate to success in other Asian markets.

Disney faces competition with cable companies, entertainment conglomerates, and growing media on demand, which can take viewers away room traditional syndicated TV fare. Disney needs to find a platform to deliver content to a growing market segment, namely on-demand viewing. This concentration of viewing also encompasses piracy.Piracy accounts for billions of lost dollars annually and Disney will unfortunately face piracy issues, especially while expanding into foreign markets where legal laws and penalties may be less severe than in North America. Trends and Conclusion With the rapid ascent of digital media and on-demand content, Disney recognizes the need to venture into these mediums through exclusive content partnerships and licensing agreements. The Company faces threats from a trending market segment of young customer who are keyed into handheld devices and less into TV viewers.

Disney sees this trend as an opportunity to land a stake in this market. The creation of the Sic-Tech Division will address technological advancements that will tap into this market, along with pushing the traditions of innovations – innovations in the same sense that Apple did with its I-products. Disney executives uses SCOTT analysis to make predictions and determinations of where the Company can cut costs and grow shareholder value, and at the same time address future concerns.