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Disney Stock Has Outperformed The S & P 500

Decent Essays

Disney’s stock has outperformed the S&P 500 since 2009 and in 2013 they generated revenues of 45 billion dollars. The company has continues to grow and over the last 5-10 years have aggressively been pursuing a diversification strategy. Disney has acquired the rights to Marvel, Pixar, and Playdom, which they believe will help their brand grow. However, while focusing on developing other aspects of their company I believe that they have lost track of what made Disney so successful to begin with animated movies. My recommendation for Disney is put out more then two animated movies per year, because if these movies are successful it will over them more opportunities to diversify then any other acquisition.

Disney Situational Analysis

The Walt Disney World Corporation has been one of the strongest businesses in America since the 1930’s. In 2013 Disney’s revenues increased to 45 billion compared to 35.5 billion in 2007. To go along with increased revenue growth the Disney stock has also outperformed the S&P 500 since …show more content…

If that means be continue to acquire outside firms to strengthen the division, potentially restructuring the division to be more efficient, I think the future if gaming and customer interaction will come from this division. Not only will strengthening Interactive Media be great for their division’s bottom line, but it will also grow the value chain for Disney. For example if Disney makes a hit movie that grosses over a billion dollars worldwide, they could potentially make a video game off the same movie. This game will most likely generate a lot of revenue from people wanted to immerse themselves in all things this new movie. Disney always has done a great job of getting the most out of the products people love, and I think creating digital product that people can interact and play with fits perfectly with Disney’s core

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