Company History & Overview
Between the resorts, motion pictures, and merchandising Disney has done it right. They have diversified the company. With not focusing all their attention on one product or idea they have become well know all over the world. Most families take their kids there at least once, and some families return every year to the resorts. It is a child’s dream to go to Disney World and when you get there you cannot imagine anything better as a child. The Disney Company was founded in 1923. The company’s foundation was studio entertainment. Disney distributes pictures under Walt Disney Pictures, Touchstone Pictures, Miramax Films, Buena Vista and many more. Everyone knows Disney movies, Bambi, Cinderella, Beauty & the Beast, etc, they were the movies that most generations watched while they were growing up, and are now being shown to their children. Along with the motion pictures Disney has resorts around the world. There are two resorts in the United States, one in Chiba, France, and Lantau Island. Not only are there resorts Disney has its own cruise line. This cruise line is a great idea because it is kid friendly. Most parents look for vacation spots that would be good for the whole family. Disney cruises are the answer. You can take your kids on vacation and do not have to worry about finding things for them to do.
Besides having theme parks and resorts Disney began merchandising in 1929. This started when a businessman was interested in placing the Mickey Mouse on the top of a children’s writing table. Now they have merchandise ranging from apparel, toys, home décor, books, foods, electronics, and many more. There are Disney Stores worldwide. There is a Publishing Company, Disney Press and Disney Editions.
Disney Family Museum was founded in 1955. It promotes education, writing, and scholarship funds. There is also a program called Disney Legends. This was established in 1987. The program acknowledges and honors individuals who have created the Disney magic. People who are legends are animators, imaginers, songwriters, actors, business leaders, or anyone who has made an impact on the Disney Legacy.
Disney’s Financial Health (2001-2005 evaluation):
Analyzing five-year revenues
Over the past five years, Disney has maintained a substantial growth rate in various financial areas given the many ups and downs of the economy. Despite any impending economic factors, Disney’s revenue has steadily increased over the past five years. Disney’s revenues are comprised of four major segments that bring in their income, which include: media networks, parks and resorts, studio entertainment, and consumer products. Disney owns and operates three major media conglomerates consisting of ESPN, ABC, and DISNEY. Their media networks grossed over 4 billion dollars in the past five years. In 2001 the media networks brought in over 9.5 billion dollars and by 2005 revenue increased to over 13.2 billion dollars. Disney’s theme parks and resorts had a slight differentiation in revenues from 2001 to 2003. Revenues declined from 7 billion in 2001, to 6.4 billion in 2002, and declined even more in 2003. By 2004 Disney financially bounced back by increasing their revenues from parks and resorts to 7.7 billion, and fully recovering by 2005 with 9 billion in revenue. We can attribute the decline in revenue to the September 11th terrorist attacks, which severely hindered travel and recreation. Families were fearful of traveling and with various terrorist threats, it limited their vacationing. The third segment of revenue is from their motion picture industry, which is made up of MIRAMAX FILMS, BUENA VISTA ENTERTAINMENT, and WALT DISNEY PICTURES. From 2001 to 2004 their motion picture industry steadily rose from annual revenue of 6 billion in 2001, and by 2004 rose to 8.7 billion. In 2005 this segment saw a decrease in the revenue to 7.5 billion. The final segment that makes up their revenue is consumer...
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