Running Head: The Walt Disney Company FIN534: Financial Analysis Heather Kain Strayer University Dr. John Karaffa November 30, 2011 Introduction The Walt Disney Company, along with its subsidiaries, is a diversified entertainment company. Its animation studio, parks, resorts, consumer products and media networks has allowed the Walt Disney Company to remain a staple in the entertainment industry along with its impeccable ability to market to children and adults. Through analysis of the company overview, financial threats, financial performance and stock price analysis, one can examine the financial position of the Walt Disney Company. Company Overview The Walt Disney Company was started in 1923 as the Disney Brothers …show more content…
Disney's imprints include Disney Libri, Hyperion Books for Children, Jump at the Sun, Disney Press, and Disney Editions” (2011). Finally, another Walt Disney company affiliate, the Disney Store, has locations throughout North America and Europe or consumers are welcomed to visit www.disneystore.com to purchase various Disney consumer products (Company Overview, 2011). Company Vulnerability to Current Financial Threats The Walt Disney Company has a very strong revenue base. Datamonitor explains, “A broad and diversified revenue base insulates the company from economic cycles in one industry and diversifies the company's business risks” (2011). However, the Walt Disney Company still faces a series of threats. First, the Walt Disney Company has an overreliance of the North American market. Of its total revenues, 74.3 percent is from the United States and Canada and 8.5 percent from the rest its localities in the world (SWOT Analysis, 2011). North America has been going through an economic downturn. By allowing North America to be the primary focus for promotion, instead of increasing development in other markets, this constrains the overall revenue growth, thereby weakening its rank in the international market, as well as, increasing the threat of global competition. Second, the Walt Disney Company faces intense competition in its significant industries. For example, Disney-ABC Group
One of these media giants is the Walt Disney Company (Disney). Its dramatic growth from a small company to become an oligopolist in the media industry offers an interesting
The success of movies and television programs were due to diversity and distribution. It does its own distribution and targets several markets from children to adults. Finally, the Disney character consumer product sector, which includes clothing, home goods, and toys, has been an extremely important asset to the company. For example, by establishing deals such as an agreement with Mattel, Disney was able to manufacture more than 14,000 Disney licensed products. Furthermore, Disney expanded it’s retailing by opening up Disney stores.
Walt Disney Company for eighty years has captured the attentions of millions of people around the world, offering family entertainment at theme parks, resorts, recreations, movies, TV shows, radio programming, and memorabilia (David, 2009). Today, Walt Disney possesses four main business segments: Disney Consumer products, Studio Entertainment, Parks and Resorts, and Media Networks. Each of Disney's business units increased profits apart from its interactive division, which was recently restructured (Garrahan, 2011). By combining Disney's long history with the commitment to quality, Disney Consumer Products has had a large and steady presence in the toy marketplace (Anonymous, 2010). Studio entertainment has been somewhat of
Disney’s long-run success is mainly due to creating value through diversification. Their corporate strategies (primarily under CEO Eisner) include three dimensions: horizontal and geographic expansion as well as vertical integration. Disney is a prime example of how to achieve long-run success through the choices of business, the choice of how many activities to undertake, the choice of how many businesses to be in, the choice of how to manage a portfolio of businesses and the choice of how to create synergies between those businesses (3, p.191-221). All these choices and decisions are
The Walt Disney Company, better known as Disney, represents a premier name in family entertainment worldwide (The Walt Disney Company, 2011). Since the company 1923 beginnings, Disney has become a company with a worldwide market capitalization of more than 82 billion dollars (Google, 2011). Disney is a business that operates in four business segment, consumer products, studio entertainment, media networks, and resort and theme parks. Disney executives have made ethics and compliance a top
Disney was founded on October 16, 1923, by Walt Disney and Roy O. Disney as the Disney Brothers Cartoon Studio. Guided by Walt Disney?s imagination and willingness to take risk, he influenced
The Walt Disney Company is the world’s largest media conglomerate. The company has the ability to be a successful conglomerate due to its Board of Directors, content theme of quality, as well as customer ordination in all its operating segments. The company has television holdings in ABC and ten other broadcasting stations, as well as cable networks including; ABC Family, A&E (37%), and ESPN (80%).
Globalization is forcing all companies, large and small, to focus on a larger competitive landscape. For many companies hypercompetition arises and they are left with stunted growth while competing with other businesses across the globe. Fortunately, Disney has constructed one of the world’s most recognizable and beloved brands in the entire world. To understand the external environment in which Disney competes, we must first discern which market we wish to analyze. Disney owns a plethora of companies across an extensive list of industries including publishing, game production, retail, theme parks, and software. By far the two largest segments of Disney’s business are its parks/resorts and media networks; those will be
This paper analyses the financial performance of the Walt Disney Company during FY’15 using profitability, liquidity, asset management, and debt management ratios, along with the DuPont system and a measure of Economic Value Added (EVA); and recommends purchase of the stock.
Introduction The Walt Disney Company is an American diversified multinational mass media corporation. It is the largest media conglomerate in the world in terms of revenue. It generated US$ 42.278 billion in 2012. Disney was founded on October 16, 1923, by Walt and Roy Disney as the Disney Brothers Cartoon Studio, and established itself as a leader in the American animation industry before diversifying into live-action film production, television, and travel. The Walt Disney Company operates as five primary units and segments: The Walt Disney Studios or Studio Entertainment, which includes the company's film, recording label, and theatrical divisions; Parks and Resorts, featuring the company's theme
Introduction: The Walt Disney Company is on the threshold of a new era. Michael Eisner has stepped down from his position as CEO and turned over the reigns to Robert Iger. A lot of turmoil has been brewing through the company over the last four years; many people are hoping that this change in leadership will put Disney back on the road to success. Issues began around mid-2002; when declining earnings, fleeing shareholders, and
“The purpose of the company "Walt Disney" is to be one of the world 's leading producers and providers of entertainment and information using its portfolio of brands to differentiate its content, services and consumer goods. The primary financial objectives of the company are to maximize profits and cash flow, and allocate capital to initiatives the development of long-term shareholder value.”
Disney is one of the most prestigious and well-known companies in the world. Disney is also known to be the third largest media corporation internationally as of June 2015, according to Nordic Information Centre for Media and Communication Research (Appendix 1). Disney is known to have strengths with content integration, cash surplus, characters and character trademarks, values with the use of synergy, having a very strong brand image and reputation, diversification of the business, owning several films and theaters, channels, music groups, cable television channels, radios, publishing’s, parks, resorts, and many other entertainment categories. According to the Columbia Journalism Review, Disney currently owns and has acquired the following:
The Walt Disney company is far more than just a business. It is an authentic American icon
Disney operates in very competitive industries such as media, tourism, parks and resorts, interactive entertainment and others. The competitive landscape changes quite drastically in the media industry, where news and TV go online and new competitors with new business models compete more successfully than incumbent media companies. Disney’s parks and resorts business segment also receives strong competition from local competitors who can offer better-adapted product. This results in growing competitive pressure for Walt Disney Company (Ovidijus Jurevicius).