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UMAR ALI
HAMID AFZAL
ZUBAIR SAEED

10/19/2013

National Textile University

2
Walt Disney Company
It’s not about just Disneyland….!

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National Textile University

5
HISTORY
National Textile University

6
History
1923:
Disney and his brother Roy arrived in California to sell “Alice
Wonderland”.

October 1923:
Disney Brother Cartoon studio was founded. But in 1925 the name
was changed to “Walt Disney Studio”.
1928:
First time ever, the Mickey Mouse emerged as the cartoon in
sound.
1932:
Flowers and Trees, first full-color cartoon and first Academy Award
winner.
1950:
The first live action film “Treasure Island” was completed.

10/19/2013

National Textile University

7
History
1954:
The company began television with Disneyland anthology series.
1955:
The most successful series “The Mickey Mouse Club” began as
well as the opening of new Disneyland Park in California.
1969:
The Disney started its Educational films and materials.
1971:
Walt Disney world Resort was opened with a Magic Kingdom and
two hotels in Orland, Florida.

1982:
Epcot Center was opened as part of Walt Disney World.

10/19/2013

National Textile University

8
History

1983:
Tokyo Disneyland, first international Disney theme park opened
in Japan.
1988:
At the Walt Disney World, Floridian Beach and Caribbean Beach
Resort were opened.
1990:
Disney moved towards Hollywood Pictures and acquiring
Wrather corp. and television station KHJ.
1991:
Disney purchased The Discover magazine (the leading consumer
science).
1992:
The Paris Disneyland was opened in France.

10/19/2013

National Textile University

9
History

1993:
The Disney was awarded the franchise for a National Hockey
League team, The Mighty Ducks of Anatheim.
1995:
The Disney Channel started operation in UK.
1996:
Disney Online launches Disney.com.
Radio Disney, a live 24-hour music-intensive radio network, debuts.
1998:
ESPN magazine started as well as the opening of Animal Kingdom
at The Disney World Resort.
2006:
Disney unveiled Disney Xtreme Digital, a networking site aimed at
children younger than 14 years of age.

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10
Location
Disney Resorts:

1. California
2. Florida
3. Tokyo
4. Hong Kong
5. Paris

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National Textile University

11
Disney’s Corporate Structure

The Walt-Disney Studios

Disney Consumer Products

• Walt-Disney Pictures

• Disney Hard Lines

• Miramax Films

• Disney Soft Lines

• Buena Vista Home

• Disney Toys

Entertainment

• Disney Press

• Disney Records

• Disney Publishing Worldwide

• Buena Vista Records

• Disney Store

• Hollywood Records
• Touchstone Pictures
• Pixar Animation Studios
• Disney Theatrical Group
10/19/2013

National Textile University

12
Disney’s Corporate Structure

Media Networks
• ESPN

Park and Resorts
• Disney Land Resorts

• Disney/ABC Television Group • Walt Disney World Resort
• ABC Owned Television
Stations Group

• Tokyo Disney Resort
• Disneyland Paris

• Internet Group

• Hong Kong Disneyland

• ABC Radio

• Disney Cruise Line
• Disney Vacation Club

10/19/2013

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13
Mission Statement
Walt Disney Company is to be
one of the world's leading
producers and providers of
entertainment and information.
Using our portfolio of brands to
differentiate
our
content,
services and consumer products,
we seek to develop the most
creative, inovative and profitable
entertainment experiences and
related products in the world."
10/19/2013

National Textile University

14
Proposed Mission Statement
The mission of Walt Disney
company is to be one of the
biggest and trusted producer of
entertainment and information
provider and
committed to
balancing
environmental
stewardship(to help) with its
corporate innovative goals and
operations by using advance
technology
in
all
brands
throughout
the
world
for
individuals.
10/19/2013
National Textile University

15
Purposed Vision Statement
Walt Disney Company
is to be one of the
world's leading
producers and
providers of
entertainment and
information.
10/19/2013

National Textile University

16
10/19/2013

National Textile University

17
The Strategy-Formulation
Analytical Framework

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National Textile University

18
External
Factor
Evaluation
(EFE)

Competitive
Profile
Matrix (CPM)
10/19/2013

Input
Stage

Internal
Factor
Evaluation
(IFE)

National Textile University

19
EFE Matrix
Key External Factors

Weight

Rating

Weighted Score

Job opportunity

0.15

3

0.45

Highly profitable for state

0.10

2

0.20

Special offers for schools and tourists

0.08

4

0.32

People get freshness on demand movie

0.04

1

0.04

Sale of Hit Dramas DVDs

0.03

2

0.06

Increase media network

0.10

3

0.30

Change in technology

0.12

4

0.48

Unaffordable for middle and lower class

0.05

3

0.15

Economic recession

0.10

3

0.30

Stop physical growth of children

0.07

2

0.14

Success in not predictable

0.08

1

0.08

Security threat due to terrorism

0.08

2

0.16

TOTAL

1.00

OPPORTUNITIES

Threats

10/19/2013

National Textile University

2.81
20
IFE Matrix
Key Internal Factors

Weight

Rating

Weighted Score

Best entertainment place in the world

0.08

4

0.32

Strong diversification

0.15

3

0.45

Good image (Goodwill)

0.09

4

0.36

Innovation (puppets to digital media)

0.15

4

0.60

Get easy feedback through social network

0.08

3

0.24

Acquire popular teams of different leagues.

0.05

3

0.15

Target niche market

0.05

3

0.15

Costly to visit

0.05

1

0.05

Huge investment with high risk factor

0.10

2

0.20

Specific target market

0.05

2

0.10

More costly R & D

0.05

1

0.05

Negative impact on children’s mind

0.10

1

0.10

TOTAL

1.00

Strength

Weakness

10/19/2013

National Textile University

2.77
21
Competitive Profile Matrix
(CPM)

Disney

Time Warner

CBS

Critical Success
Weighted
Weighted
Weighted
Weight Rate
Rate
Rate
Factors
Score
Score
Score
Advertisement

0.20

4

0.80

3

0.60

3

0.60

Management

0.18

3

0.54

4

0.72

3

0.54

Market Share

0.10

3

0.30

2

0.20

1

0.10

Global Expansion

0.08

3

0.24

2

0.16

1

0.08

Financial Position

0.10

2

0.20

3

0.30

1

0.10

Product Quality

0.15

4

0.60

3

0.45

2

0.30

Price Competition

0.07

2

0.14

3

0.21

2

0.14

Revenue

0.12

3

0.36

4

0.48

2

0.24

TOTAL

1.00

10/19/2013

3.18
National Textile University

3.12

2.10
22
Matching Stage
10/19/2013

National Textile University

23
10/19/2013

National Textile University

SWOT
Matrix
SPACE
Matrix

Grand
Strategy
Matrix

Matching
Stage
IE
Matrix

BCG
Matrix
24
SWOT Matrix
Strength – S

1. Best entertainment place in the
world.
2. Strong diversification.
3. Good image in the mind of the
people. (Goodwill)
4. Innovation (puppets to digital
media)
5. Get easy feedback through social
network. (Disney Xtreme Digital).
6. Acquire popular teams of different
leagues.
7. Target niche market.

Opportunities – O

1. Job opportunity.
2. Highly profitable for state.
3. Special offers for schools and
tourists.
4. People get freshness on
demand movie.
5. Sale of Hit Dramas DVDs.
6. Increase media network.

Threats – T

1. Change in technology.
2. Unaffordable for middle and
lower class.
3. Economic recession
4. Stop physical growth of
children.
5. Success in not predictable.
6. Security threat due to terrorism.
10/19/2013

SO Strategies

Weakness – W
1.
2.
3.
4.
5.

Specific target market.
Costly to visit Disney Parks
and Resorts.
Huge investment with high
risk factor. (forecasting
based)
More costly Research and
Development.
Negative impact on
children’s mind.

WO Strategies

S1, S3 + O1, O2 =

W1 + O2, O6 =

Market development

Product Development

ST Strategies
S2, S4 + T1, T2, T3 =
Batter Management
Through cover the cost
National Textile University

WT Strategies
W3, W4 + T1, T5 =
Focus on R & D
25
SPACE Matrix
Internal Position
Financial Strength

External Position

Rating

Environmental Stability

Rating

Liquidity

6

Technological Change

-5

Working Capital

3

Security Threat

-3

Earning Per Share

5

Economic Recession

-2

Return On Investment

4

Competitive Pressure

-5

Cash Flow

4

Change in Demand

-6

Total

22

Total

-21

Competitive Advantage

Rating

Industrial Stability

Rating

Market Share

-1

Financial Stability

6

Product Quality

-2

Market Growth

5

Customer Loyalty

-3

Utilization of Resources

5

Diversification

-2

Increase media network

3

-8

Total

19

Total
10/19/2013

National Textile University

26
SPACE Matrix

Calculation:
FS
FS

ES
ES

Sum of FS
CA
Number of components
22
4.4
CA
5
Sum of ES
IS
Number of components
21
4.2
IS
5

Y Axis
Y Axis
Y Axis

10/19/2013

= FS + ES
= 4.4 + (-4.2)
= +0.2

Sum of CA
Number of components
8
2
4
Sum of IS
Number of components
19
4.75
4

X Axis
X Axis
X Axis

National Textile University

= CA + IS
= -2 + 4.75
= +2.75
27
SPACE Matrix
FS
Conservative

Strategies

Aggresive

Market Development
Market Penetration
Product Development
Forward Integration
Backward Integration
Horizontal Integration
Related Diversification
Unrelated Diversification

(+2.75 , +0.2)

CA

IS

Defensive

competitive

ES
10/19/2013

National Textile University

28
10/19/2013

National Textile University

29
BCG Matrix

Market growth rate

High
1.0

10/19/2013

High
+20

Relative market share
Medium
0.5

Media Network

Park & Resort

Parks & Resorts
Studio Entertainment

low
0.0

Consumer Products

Medium
0

Low
-20

National Textile University

30
IE Matrix
IFE Total weighted score (2.77)
Strong

EFE Total Weighted score
(2.81)

3.0 to 4.0

10/19/2013

Average
3

2.0 to 2.99

Weak
2

1.0 to 1.99

1

4
High
3.0 to 3.99

3
Medium
2.0 to 2.99

2
Low
1.0 to 1.99

1

Hold and Maintain
National Textile University

31
Grand Strategy Matrix
Rapid Market Growth

Quadrant 2

Quadrant 1

Strategies

Market Development
Market Penetration
Product Development
Forward Integration
Backward Integration
Horizontal Integration
Related Diversification
Unrelated Diversification

Strong
Competitive
Position

Weak
Competitive
Position
Quadrant 3

Quadrant 4

Slow Market Growth
10/19/2013

National Textile University

32
Decision Stage

10/19/2013

National Textile University

33
Decision
Stage

10/19/2013

• QSPM Matrix

National Textile University

34
QSPM Matrix
(Quantitative Strategic Planning Matrix)
Key Factors

R&D

Market Development

Weight

AS

TAS

AS

TAS

Job opportunity

0.15

4

0.60

3

0.45

Highly profitable for state

0.10

4

0.40

3

0.30

Special offers for schools and tourists

0.08

3

0.24

2

0.16

People get freshness on demand movie

0.04

---

---

---

---

Sale of Hit Dramas DVDs

0.03

---

---

---

---

Increase media network

0.10

2

0.20

1

0.10

Change in technology

0.12

4

0.48

3

0.36

Unaffordable for middle and lower class

0.05

3

0.15

2

0.10

Economic recession

0.10

2

0.20

3

0.30

Stop physical growth of children

0.07

---

---

---

---

Success in not predictable

0.08

2

0.16

1

0.08

Security threat due to terrorism

0.08

2

0.16

1

0.08

TOTAL

1.00

Opportunities

Threats

10/19/2013

National Textile University

2.59

1.93
35
QSPM Matrix
(Quantitative Strategic Planning Matrix)
Key Factors

Weight

R&D

Market Development

AS

TAS

AS

TAS

Strength
Best entertainment place in the world

0.08

3

0.24

2

0.16

Strong diversification

0.15

---

---

---

---

Good image (Goodwill)

0.09

4

0.36

3

0.27

Innovation (puppets to digital media)

0.15

3

0.45

2

0.30

Get easy feedback through social network

0.08

---

---

---

---

Acquire popular teams of different leagues.

0.05

---

---

---

---

Target niche market

0.05

4

0.20

3

0.15

Costly to visit

0.05

---

---

---

---

Huge investment with high risk factor

0.10

2

0.20

1

0.10

Specific target market

0.05

1

0.05

2

0.10

More costly R & D

0.05

1

0.05

2

0.10

Negative impact on children’s mind

0.10

---

---

---

---

TOTAL

1.00

Weakness

10/19/2013

National Textile University

1.18

4.14

GRAND TOTAL

1.55

3.11
36
Recommendation

Strategy we adopt is:

Research and Development

10/19/2013

National Textile University

37
10/19/2013

National Textile University

38
10/19/2013

National Textile University

39
ANY QUESTION??????????

10/19/2013

National Textile University

40

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Walt Disney Company (Case Study)

  • 1.
  • 2. Group Members UMAR ALI HAMID AFZAL ZUBAIR SAEED 10/19/2013 National Textile University 2
  • 3.
  • 4.
  • 5. Walt Disney Company It’s not about just Disneyland….! 10/19/2013 National Textile University 5
  • 7. History 1923: Disney and his brother Roy arrived in California to sell “Alice Wonderland”. October 1923: Disney Brother Cartoon studio was founded. But in 1925 the name was changed to “Walt Disney Studio”. 1928: First time ever, the Mickey Mouse emerged as the cartoon in sound. 1932: Flowers and Trees, first full-color cartoon and first Academy Award winner. 1950: The first live action film “Treasure Island” was completed. 10/19/2013 National Textile University 7
  • 8. History 1954: The company began television with Disneyland anthology series. 1955: The most successful series “The Mickey Mouse Club” began as well as the opening of new Disneyland Park in California. 1969: The Disney started its Educational films and materials. 1971: Walt Disney world Resort was opened with a Magic Kingdom and two hotels in Orland, Florida. 1982: Epcot Center was opened as part of Walt Disney World. 10/19/2013 National Textile University 8
  • 9. History 1983: Tokyo Disneyland, first international Disney theme park opened in Japan. 1988: At the Walt Disney World, Floridian Beach and Caribbean Beach Resort were opened. 1990: Disney moved towards Hollywood Pictures and acquiring Wrather corp. and television station KHJ. 1991: Disney purchased The Discover magazine (the leading consumer science). 1992: The Paris Disneyland was opened in France. 10/19/2013 National Textile University 9
  • 10. History 1993: The Disney was awarded the franchise for a National Hockey League team, The Mighty Ducks of Anatheim. 1995: The Disney Channel started operation in UK. 1996: Disney Online launches Disney.com. Radio Disney, a live 24-hour music-intensive radio network, debuts. 1998: ESPN magazine started as well as the opening of Animal Kingdom at The Disney World Resort. 2006: Disney unveiled Disney Xtreme Digital, a networking site aimed at children younger than 14 years of age. 10/19/2013 National Textile University 10
  • 11. Location Disney Resorts: 1. California 2. Florida 3. Tokyo 4. Hong Kong 5. Paris 10/19/2013 National Textile University 11
  • 12. Disney’s Corporate Structure The Walt-Disney Studios Disney Consumer Products • Walt-Disney Pictures • Disney Hard Lines • Miramax Films • Disney Soft Lines • Buena Vista Home • Disney Toys Entertainment • Disney Press • Disney Records • Disney Publishing Worldwide • Buena Vista Records • Disney Store • Hollywood Records • Touchstone Pictures • Pixar Animation Studios • Disney Theatrical Group 10/19/2013 National Textile University 12
  • 13. Disney’s Corporate Structure Media Networks • ESPN Park and Resorts • Disney Land Resorts • Disney/ABC Television Group • Walt Disney World Resort • ABC Owned Television Stations Group • Tokyo Disney Resort • Disneyland Paris • Internet Group • Hong Kong Disneyland • ABC Radio • Disney Cruise Line • Disney Vacation Club 10/19/2013 National Textile University 13
  • 14. Mission Statement Walt Disney Company is to be one of the world's leading producers and providers of entertainment and information. Using our portfolio of brands to differentiate our content, services and consumer products, we seek to develop the most creative, inovative and profitable entertainment experiences and related products in the world." 10/19/2013 National Textile University 14
  • 15. Proposed Mission Statement The mission of Walt Disney company is to be one of the biggest and trusted producer of entertainment and information provider and committed to balancing environmental stewardship(to help) with its corporate innovative goals and operations by using advance technology in all brands throughout the world for individuals. 10/19/2013 National Textile University 15
  • 16. Purposed Vision Statement Walt Disney Company is to be one of the world's leading producers and providers of entertainment and information. 10/19/2013 National Textile University 16
  • 20. EFE Matrix Key External Factors Weight Rating Weighted Score Job opportunity 0.15 3 0.45 Highly profitable for state 0.10 2 0.20 Special offers for schools and tourists 0.08 4 0.32 People get freshness on demand movie 0.04 1 0.04 Sale of Hit Dramas DVDs 0.03 2 0.06 Increase media network 0.10 3 0.30 Change in technology 0.12 4 0.48 Unaffordable for middle and lower class 0.05 3 0.15 Economic recession 0.10 3 0.30 Stop physical growth of children 0.07 2 0.14 Success in not predictable 0.08 1 0.08 Security threat due to terrorism 0.08 2 0.16 TOTAL 1.00 OPPORTUNITIES Threats 10/19/2013 National Textile University 2.81 20
  • 21. IFE Matrix Key Internal Factors Weight Rating Weighted Score Best entertainment place in the world 0.08 4 0.32 Strong diversification 0.15 3 0.45 Good image (Goodwill) 0.09 4 0.36 Innovation (puppets to digital media) 0.15 4 0.60 Get easy feedback through social network 0.08 3 0.24 Acquire popular teams of different leagues. 0.05 3 0.15 Target niche market 0.05 3 0.15 Costly to visit 0.05 1 0.05 Huge investment with high risk factor 0.10 2 0.20 Specific target market 0.05 2 0.10 More costly R & D 0.05 1 0.05 Negative impact on children’s mind 0.10 1 0.10 TOTAL 1.00 Strength Weakness 10/19/2013 National Textile University 2.77 21
  • 22. Competitive Profile Matrix (CPM) Disney Time Warner CBS Critical Success Weighted Weighted Weighted Weight Rate Rate Rate Factors Score Score Score Advertisement 0.20 4 0.80 3 0.60 3 0.60 Management 0.18 3 0.54 4 0.72 3 0.54 Market Share 0.10 3 0.30 2 0.20 1 0.10 Global Expansion 0.08 3 0.24 2 0.16 1 0.08 Financial Position 0.10 2 0.20 3 0.30 1 0.10 Product Quality 0.15 4 0.60 3 0.45 2 0.30 Price Competition 0.07 2 0.14 3 0.21 2 0.14 Revenue 0.12 3 0.36 4 0.48 2 0.24 TOTAL 1.00 10/19/2013 3.18 National Textile University 3.12 2.10 22
  • 25. SWOT Matrix Strength – S 1. Best entertainment place in the world. 2. Strong diversification. 3. Good image in the mind of the people. (Goodwill) 4. Innovation (puppets to digital media) 5. Get easy feedback through social network. (Disney Xtreme Digital). 6. Acquire popular teams of different leagues. 7. Target niche market. Opportunities – O 1. Job opportunity. 2. Highly profitable for state. 3. Special offers for schools and tourists. 4. People get freshness on demand movie. 5. Sale of Hit Dramas DVDs. 6. Increase media network. Threats – T 1. Change in technology. 2. Unaffordable for middle and lower class. 3. Economic recession 4. Stop physical growth of children. 5. Success in not predictable. 6. Security threat due to terrorism. 10/19/2013 SO Strategies Weakness – W 1. 2. 3. 4. 5. Specific target market. Costly to visit Disney Parks and Resorts. Huge investment with high risk factor. (forecasting based) More costly Research and Development. Negative impact on children’s mind. WO Strategies S1, S3 + O1, O2 = W1 + O2, O6 = Market development Product Development ST Strategies S2, S4 + T1, T2, T3 = Batter Management Through cover the cost National Textile University WT Strategies W3, W4 + T1, T5 = Focus on R & D 25
  • 26. SPACE Matrix Internal Position Financial Strength External Position Rating Environmental Stability Rating Liquidity 6 Technological Change -5 Working Capital 3 Security Threat -3 Earning Per Share 5 Economic Recession -2 Return On Investment 4 Competitive Pressure -5 Cash Flow 4 Change in Demand -6 Total 22 Total -21 Competitive Advantage Rating Industrial Stability Rating Market Share -1 Financial Stability 6 Product Quality -2 Market Growth 5 Customer Loyalty -3 Utilization of Resources 5 Diversification -2 Increase media network 3 -8 Total 19 Total 10/19/2013 National Textile University 26
  • 27. SPACE Matrix Calculation: FS FS ES ES Sum of FS CA Number of components 22 4.4 CA 5 Sum of ES IS Number of components 21 4.2 IS 5 Y Axis Y Axis Y Axis 10/19/2013 = FS + ES = 4.4 + (-4.2) = +0.2 Sum of CA Number of components 8 2 4 Sum of IS Number of components 19 4.75 4 X Axis X Axis X Axis National Textile University = CA + IS = -2 + 4.75 = +2.75 27
  • 28. SPACE Matrix FS Conservative Strategies Aggresive Market Development Market Penetration Product Development Forward Integration Backward Integration Horizontal Integration Related Diversification Unrelated Diversification (+2.75 , +0.2) CA IS Defensive competitive ES 10/19/2013 National Textile University 28
  • 30. BCG Matrix Market growth rate High 1.0 10/19/2013 High +20 Relative market share Medium 0.5 Media Network Park & Resort Parks & Resorts Studio Entertainment low 0.0 Consumer Products Medium 0 Low -20 National Textile University 30
  • 31. IE Matrix IFE Total weighted score (2.77) Strong EFE Total Weighted score (2.81) 3.0 to 4.0 10/19/2013 Average 3 2.0 to 2.99 Weak 2 1.0 to 1.99 1 4 High 3.0 to 3.99 3 Medium 2.0 to 2.99 2 Low 1.0 to 1.99 1 Hold and Maintain National Textile University 31
  • 32. Grand Strategy Matrix Rapid Market Growth Quadrant 2 Quadrant 1 Strategies Market Development Market Penetration Product Development Forward Integration Backward Integration Horizontal Integration Related Diversification Unrelated Diversification Strong Competitive Position Weak Competitive Position Quadrant 3 Quadrant 4 Slow Market Growth 10/19/2013 National Textile University 32
  • 35. QSPM Matrix (Quantitative Strategic Planning Matrix) Key Factors R&D Market Development Weight AS TAS AS TAS Job opportunity 0.15 4 0.60 3 0.45 Highly profitable for state 0.10 4 0.40 3 0.30 Special offers for schools and tourists 0.08 3 0.24 2 0.16 People get freshness on demand movie 0.04 --- --- --- --- Sale of Hit Dramas DVDs 0.03 --- --- --- --- Increase media network 0.10 2 0.20 1 0.10 Change in technology 0.12 4 0.48 3 0.36 Unaffordable for middle and lower class 0.05 3 0.15 2 0.10 Economic recession 0.10 2 0.20 3 0.30 Stop physical growth of children 0.07 --- --- --- --- Success in not predictable 0.08 2 0.16 1 0.08 Security threat due to terrorism 0.08 2 0.16 1 0.08 TOTAL 1.00 Opportunities Threats 10/19/2013 National Textile University 2.59 1.93 35
  • 36. QSPM Matrix (Quantitative Strategic Planning Matrix) Key Factors Weight R&D Market Development AS TAS AS TAS Strength Best entertainment place in the world 0.08 3 0.24 2 0.16 Strong diversification 0.15 --- --- --- --- Good image (Goodwill) 0.09 4 0.36 3 0.27 Innovation (puppets to digital media) 0.15 3 0.45 2 0.30 Get easy feedback through social network 0.08 --- --- --- --- Acquire popular teams of different leagues. 0.05 --- --- --- --- Target niche market 0.05 4 0.20 3 0.15 Costly to visit 0.05 --- --- --- --- Huge investment with high risk factor 0.10 2 0.20 1 0.10 Specific target market 0.05 1 0.05 2 0.10 More costly R & D 0.05 1 0.05 2 0.10 Negative impact on children’s mind 0.10 --- --- --- --- TOTAL 1.00 Weakness 10/19/2013 National Textile University 1.18 4.14 GRAND TOTAL 1.55 3.11 36
  • 37. Recommendation Strategy we adopt is: Research and Development 10/19/2013 National Textile University 37