Historically looking the Disney Company started with its iconic character Mickey Mouse, and even years after its activities has been diversified, it’s visible that all the Disney products and companies are related and dependable at the same time to each other. By producing a new movie and introducing new characters, Disney is ready with a complementary line of toys, costumes and actions figures, followed by the DVD game and movie, characters presence in the Disney’s parks and in television show. All the line of products depends on the interest and popularity of the movie and new character to the large public. This is one of the general challenge and major area of concern: unpredictability of investments. The company starts to invest in new line of toys, costumes, DVD game and movie long before the movie left the theaters, without having a 100% insurance of public interest and willingness to pay for its interest, based on studies and predictions. Generally speaking, we can summarize Disney’s future risks and challenges as: 1.
External forces and trends and,
Internal or creativity risks.
Speaking about external risks, the following should be mentioned primarily: •
Changes in U.S., regional or global economic conditions. Being a worldwide company, Disney has to face and to take into consideration both domestic and global economic situations. As the president and CEO Robert A. Iger mentioned in the annual report: “the most recent decline in economic conditions reduced spending at our parks and resorts, purchase of and prices for advertising on our broadcast and cable networks and owned stations, performance of our home entertainment releases, and purchases of Company-branded consumer products, and similar impacts can be expected should such conditions recur”. At the same time another concern is the dollar strength. A weaker dollar attracts more tourists to US and more Americans to travel inside the country, and stronger dollar will increase the prices for...
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