The Walt Disney Company Essay - 2102 Words

Running Head: The Walt Disney Company FIN534: Financial Analysis Heather Kain Strayer University Dr. John Karaffa November 30, 2011 Introduction The Walt Disney Company, along with its subsidiaries, is a diversified entertainment company. Its animation studio, parks, resorts, consumer products and media networks has allowed the Walt Disney Company to remain a staple in the entertainment industry along with its impeccable ability to market to children and adults. Through analysis of the company overview, financial threats, financial performance and stock price analysis, one can examine the financial position of the Walt Disney Company. Company Overview The Walt Disney Company was started in 1923 as the Disney Brothers†¦show more content†¦Disneys imprints include Disney Libri, Hyperion Books for Children, Jump at the Sun, Disney Press, and Disney Editions† (2011). Finally, another Walt Disney company affiliate, the Disney Store, has locations throughout North America and Europe or consumers are welcomed to visit www.disneystore.com to purchase various Disney consumer products (Company Overview, 2011). Company Vulnerability to Current Financial Threats The Walt Disney Company has a very strong revenue base. Datamonitor explains, â€Å"A broad and diversified revenue base insulates the company from economic cycles in one industry and diversifies the companys business risks† (2011). However, the Walt Disney Company still faces a series of threats. First, the Walt Disney Company has an overreliance of the North American market. Of its total revenues, 74.3 percent is from the United States and Canada and 8.5 percent from the rest its localities in the world (SWOT Analysis, 2011). North America has been going through an economic downturn. By allowing North America to be the primary focus for promotion, instead of increasing development in other markets, this constrains the overall revenue growth, thereby weakening its rank in the international market, as well as, increasing the threat of global competition. Second, the Walt Disney Company faces intense competition in its si gnificant industries. For example, Disney-ABC GroupShow MoreRelatedWalt Disney And The Disney Company Essay1236 Words   |  5 Pages1923 by animator Walt Disney and Roy O. Disney, the Walt Disney Company is an â€Å"American diversified multinational mass media and entertainment conglomerate†; whose media companies include the Disney Channel, ABC, ESPN, and AE. Furthermore, they receive revenue from their various theme parks and resorts located around the world, the sale of merchandise related to their various media projects, and their mergers and acquisitions. Notably with Pixar, Marvel, and LucasFilm Ltd. 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