•Disney owns and operates the ABC Television Networks which reaches 99% of all U.S. Television households (p. 28). Additionally, “Disney owns 10 television stations” and “six are located in the top 10 television markets in the United States” (David, 2011, p. 29) •“Walt Disney is the leader in theme parks with a 8.4% share of the market, over competitor Six Flags who holds only 0.8%. (David, 2011, p. 34) •Licensing feature films to third party studios, allows Disney to earn a licensing fee on the films, while passing the high cost of production and distribution to the 3rd party (David, 2011, p. 35).
Disney’s internal weaknesses are recapped below:
•Disney Interactive Media division-operating income declined 97% to a loss of $128 Million for 6 month period ending April 2, 2011 indicating weakness in this segment (David, 2011, pg. 27). •Disney has low Gross Margins at18.58% compared to competitor at 40.88% for the industry and 44.42% for competitor time Warner indicating Disney is operating with a higher cost of goods sold when compared to competitors (David, 2011, p. 31). •Difficulties in “tailoring the niche attractions to local markets while keeping the Disney brand reputation”-this could potentially hinder Disney’s ability to expand further globally with regard to Parks & Recreations segment (David, 2011, p. 33).
Examples of External Opportunities for Disney are listed below: •Florida is installing a commuter rail system in Orlando, Florida area-which could potentially bring “jobs and economic gain to the region where (Disney) has operations”-resulting in potential additional patronage (David, 2011, p. 38). •As indicated in the Strengths sections- “Disney owns and operates the ABC Television Networks which reaches 99% of all U.S. Television households (David, 2011, p. 28). Additionally, “Disney owns 10 television stations” and “six are located in the top 10 television markets in the United States” (David,...