2.2a
Threat of New Entrants
The threat of new entrants is one that is low. Barriers to this industry are high. The sheer numbers involved in a company and an industry such as media and entertainment are what partially lead to this. Also, there is a degree of specialization to which WDC has in the niche market of family entertainment and theme parks. Aside from these barriers is the capital barrier � the costs for these companies are extremely high. WDC has a control on their product market and utilizes economies of scale as a tactic. Also advertising and promotion make it hard for other companies to compete. The synergy behind Disney and Mickey Mouse in the theme parks and broadcasts alone is incredible.
UPDATE
There have been some new companies moving in and putting up offers to buy this media mogul. Viacom, Comcast, etc.