Strategic Management Overview and Disney Case Study

Disney's strategy under Eisner focused on leveraging existing strengths (classic films, animation), creating synergy between films, theme parks, and merchandise, diversifying into media, licensing, and new businesses, and establishing a strong brand and storytelling foundation.

Disney's profits stagnated, relying heavily on theme parks for revenue, and neglecting its core film business.

Southwest Airlines aims to be the most beloved airline in the world, with the highest customer satisfaction and profitability, emphasizing customer service and employee morale.

Southwest Airlines focuses on delivering excellent customer service with warmth, friendliness, pride, and company spirit, emphasizing a positive workplace culture.

A strategy where different business units within a company work together to achieve a common goal, maximizing value and synergy.

A strategic plan that outlines how a company will outperform its competitors by providing unique value propositions or achieving lower costs.

A company's mission statement defines its purpose, while its vision statement describes its long-term goals. Together, they create a guiding roadmap for the company's future.

A company's ability to consistently generate higher profits than its competitors.

Analyzing the external market, industry trends, and competitors to identify opportunities and threats. It complements internal analysis by understanding the broader context of the company.

Strategic management is a process involving defining a company's goals, analyzing internal and external factors, developing a strategic plan for competitive advantage, and implementing that plan to achieve its objectives.

The leading companies in the large commercial aircraft market with a significant market share and focus on aircraft with more than 100 seats. Boeing has a 50% market share and Airbus has 31%.

Growth in air traffic, driven by factors like globalization and increased demand for travel, is fueling the demand for new aircraft. It has been growing at an average rate of 5% annually since 1980.

Companies like Comac, Bombardier, and Embraer are targeting the narrow-body jet segment with aircraft ranging from 100 to 190 seats, creating competition for Boeing and Airbus.

The competition in the narrow-body segment is increasing, leading to price pressures and potentially impacting profits for major manufacturers as they focus on developing more fuel-efficient aircraft to remain competitive.

Air travel is projected to continue growing at a rate of 5% annually, indicating a significant potential for the demand for new aircraft in the coming years. This growth is expected to drive further investment and innovation within the industry.

Companies like Walmart have significant benefits due to their large size, including lower production costs and better bargaining power with suppliers.

The difficulty faced by new companies in entering a specific market due to factors like high investment costs or strong existing brands.

Focuses on offering products or services at the lowest possible price to gain market share.

A strategy where a company collaborates with another company to achieve a common goal, such as gaining access to a new market.

The process of analyzing the external environment like political, economic, social, technological, ecological, and legal factors to identify opportunities and threats for a business.

External analysis helps a company assess its competitive landscape, identify potential threats and opportunities, and make informed strategic decisions for long-term success.

PESTLE stands for Political, Economic, Social, Technological, Legal, and Environmental. It's a framework used to analyze the external environment and identify factors that might impact a company's strategy.

Porter's Five Forces is a strategic tool to analyze industry competition and understand the forces that influence profitability. These forces are rivalry among competitors, threat of new entrants, threat of substitutes, bargaining power of suppliers, and bargaining power of buyers.

Strategic groups are clusters of companies within the same industry that share similar strategies, such as pricing, service, or technology. Competitive analysis focuses on how companies within the same strategic group compete.

The industry lifecycle describes the stages of an industry's development, from its early growth to mature and eventual decline. Companies need to adapt their strategies to the specific phase of the industry to remain competitive.

Google's organizational structure promotes autonomy, innovation, and reduced bureaucracy by empowering small, self-managing teams that work on multiple projects. This decentralized approach encourages decision-making based on merit, not hierarchy.

Google's leadership fosters a collaborative environment where decisions are reached through discussions and input from various levels of employees. Empowerment and peer feedback are emphasized over top-down management, encouraging employees to pursue innovative projects with the 20% time policy.

Google's flat structure may not scale efficiently as the company expands, potentially leading to coordination issues. Maintaining a culture of openness and innovation while accommodating growth could become challenging.

Southwest Airlines' strengths include its strong brand, large fleet, and scalable operations. The point-to-point system enables efficient expansion without overloading existing infrastructure, allowing Southwest to remain competitive.

Southwest Airlines faces challenges like limited international presence, thin profit margins, and intense competition from larger airlines. The company's cost leadership strategy leads to lower profit margins, and potential threats include regulatory changes, fuel price volatility, and a pilot shortage.