Quantitative Strategic Planning Matrix (QSPM) PDF

Preview

Summary

This is the Quantitative Strategic Planning Matrix for The Walt Disney Company....

Description

Quantitative Strategic Planning Matrix (QSPM)

Key Factors Opportunities 1. Expansion due to rising incomes globally 2. Technological innovation and change in norms 3. Increase in streaming activity 4. Growing movies and entertainment industry 5. Expansion of video gaming industry 6. Improving conditions of the leisure attractions market 7. Growing global broadcasting and cable TV market Threats 1. Changes in consumer tastes and preferences 2. Increasing competition in all markets 3. Movement towards isolationism 4. Rising pay level 5. Increasing digital content piracy 6. Increasing interest in technology for children 7. Decrease in travel because of COVID-19 Total Strengths 1. Currently own a variety of media outlets 2. Multiple theme parks around the world and cruise lines 3. Strong recognition and reputation around the world 4. Diverse investment portfolio 5. Effective advertisements 6. Increase in paid subscribers for streaming services 7. Increase of operating income Weaknesses 1. Overdependence on specific regions 2. First quarter revenues for 2021 down 13% 3. Extremely large portfolio might lead to inefficiencies 4. High production costs in entertainment industry 5. High employee turnover 6. Some divisions have a narrow target market 7. Fluctuations in business Totals

Weights

Strategic Alternatives Expansion into Utilize their new markets reputation to that will capitalize on potentially be the improving profitable leisure because of attractions rising incomes market AS TAS AS TAS

0.08 0.10 0.12 0.09 0.02

4 3 2 -

0.32 0.30 0.18 -

3 1 3 -

0.24 0.10 0.27 -

0.08

3

0.24

4

0.32

0.07

2

0.14

1

0.07

0.10 0.10 0.02 0.02 0.06 0.07 0.07 1.00

2 4 3 1 4

0.20 0.40 0.06 0.07 0.28

2 3 3 3 4

0.20 0.30 0.06 0.21 0.28

0.08

4

0.32

3

0.24

0.09

4

0.36

4

0.36

0.12 0.09 0.07 0.07 0.10

3 3 -

0.36 0.21 -

4 2 -

0.48 0.14 -

0.10 0.06

4 2

0.40 0.12

1 2

0.10 0.12

0.04

-

-

-

-

0.05 0.04 0.04 0.05 1.00

4

0.20 4.16

2

0.10 3.59

QSPM Explanation I chose these two strategies because they will enable The Walt Disney Company to expand and grow into new markets as well as improve their position in markets that they currently compete in. In recent years, there has been a trend of rising incomes around the world, which means there will be more disposable income. They are also an established business with theme parks and cruise lines at locations worldwide. With the first strategy, The Walt Disney Company has the opportunity to expand into other countries and increase their sales, causing them to not be so dependent on their sales in North America. They are one of the most recognized and well-known companies around the world. The leisure attractions market, which is where much of their revenues come from, has recently seen improving conditions and is experiencing growth. With the second strategy, The Walt Disney Company can utilize their reputation and recognition to capitalize on the improving conditions of the market and increase their sales and revenues....