Disney Valuation
COMPANY DESCRIPTION The Walt Disney Company was created on October 16th, 1923 as a contract between Walt Disney and M.J. Winkler. This venture was referred to as The Disney Brothers Studio. From its beginnings as a cartoon and animation studio, The Walt Disney Company has grown into a multinational empire. It has delivered an incomparable entertainment experience for people of all ages. Disney is now the largest entertainment company in the world, consisting of five business segments which include: media networks, parks and resorts, studio entertainment, consumer products, and interactive. Additionally, the company’s globally known consumer brands include: Disney, ABC, ESPN, Pixar, Marvel, and LucasFilms. The Walt Disney Corporation has created a phenomenal empire in the entertainment industry and it continues to strive for high quality production to keep up with its legacy.
SWOT Analysis
Strengths
The Walt Disney Company has many strengths, the most important being the brand itself. The Walt Disney Company is known as a leader in family entertainment, and has been around for more than 90 years. It was rated the 14th most valuable brand in 2013. Another strength is its breadth: Disney is a leader not only in movies and television, but in the theme park industry and consumer segment as well. Disney’s extensions into all of these categories make it easier to grow its already large customer base.
Weaknesses
Disney has several weaknesses. First of all, the Walt Disney Company has high operating costs. In addition to their exceptionally high sunk costs, there is the continual cost of updating all the parks, resorts, hotels, cruise ships, and so on. Secondly, Disney heavily depends on US and Canadian markets for its income even though it operates in more than 200 countries. More than 70% of the business revenues come from US alone. The third weakness is Disney’s frequent change in management. Regularly changing a company’s management can hinder a company’s
SWOT Analysis
Strengths
The Walt Disney Company has many strengths, the most important being the brand itself. The Walt Disney Company is known as a leader in family entertainment, and has been around for more than 90 years. It was rated the 14th most valuable brand in 2013. Another strength is its breadth: Disney is a leader not only in movies and television, but in the theme park industry and consumer segment as well. Disney’s extensions into all of these categories make it easier to grow its already large customer base.
Weaknesses
Disney has several weaknesses. First of all, the Walt Disney Company has high operating costs. In addition to their exceptionally high sunk costs, there is the continual cost of updating all the parks, resorts, hotels, cruise ships, and so on. Secondly, Disney heavily depends on US and Canadian markets for its income even though it operates in more than 200 countries. More than 70% of the business revenues come from US alone. The third weakness is Disney’s frequent change in management. Regularly changing a company’s management can hinder a company’s
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