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 a problem for Disney and has not increased revenues by great percentages. Parks and Resorts increased revenue by 29 percent in 2006 and media networks increased revenue by 43 percent. The Media Network segment brings in the most revenue and operating income (David, 2009). This segment and the Parks & Resorts segments are growing. ANALYSIS & MATRIX
An Internal Factor Evaluation (IFE) Matrix summarizes and evaluates major strengths and weaknesses in the functional areas of a business, and it also provides a basis for identifying and evaluating relationships among those areas (David, 2009). An IFE weighted score of 2.5 is the midpoint indicating that there is room for improvement in strategies, policies and procedures, therefore, Disney’s rating of 2.7 states overall that the company should formulate strategies to relate their strengths and weaknesses. Disney is doing well overall, there are some concerns with their weak points, but their strategies are being addressed. With increasing revenue yearly, their strategies have proven to be beneficial. Weight - 0.0 (Not Important) – 1.00 (All Important)
Rating - 1 (Major Weakness), 2 (Minor Weakness), 3 (Minor Strength), 4 (Major Strength) StrengthsWeightRatingWeighted ScoreComments
One of the biggest Hollywood studios0.1030.3Of the several studios in California, it is the most popular, this could be used to their advantage. Although their studio entertainment segment revenue has decreased by 1 percent, the worldwide theatrical motion picture distribution revenues have increased from $522M to $729M from selected movies. Disney Company owns 11 theme parks and 4 business segments0.1230.36Has a lead on the competitive amusement parks through their history, Disney owns these 11 theme parks of three continents. Revenue for the theme parks have increased 10 percent in 2006 due to their domestic and international parks and resorts. Increasing trends in overall revenues and profits0.1540.6With their competition and threatening factors, Disney's revenue and income are both growing in all regions of the world, with Europe being second behind the US/Canada in revenues and income. Disney holds US$ 62.497 billion of assets0.1330.39Because of the Disney's many strengths and increased revenue, they have some stability in the industry as their competitor in all segments is only Time Warner Cable, which has an additional business segment over Disney. Popular characters0.0840.32No competition on their main characters, Mickey & Minnie, Winnie the Pooh. Disney is the largest worldwide licensor of character based merchandise and distributor of children's film related products based on retail sales. Walt Disney logo is famous0.1030.3Disney's history speaks for itself, it's logo will continue to stand out in the industry, Disney spends millions to protect their intellectual property worldwide in order to compete with their competitors. Weaknesses
High operating cost0.0810.08The many business segments moreso the international operating costs have been a problem with currency translation, this will only increase as time progresses, which will continue to offset and ultimately have a decreasing effect on the park and...