Financial report issues and analysis
Valuation of the Walt Disney Company
The Walt Disney Company is an American media and entertainment Company and also the largest media conglomerate in the world. Disney was established by Walt and Roy Disney in 1923 as the Disney Brothers Carton Studio in the early stage and become a leader in the American animation industry before they diversified their business into live-action file production, television and travel. In 1986, Disney expanded their business into theater, radio, music, publishing and online media. Nowadays, Disney owns and operates in media networks, parks and resorts, studio entertainment, consumer products and interactive media in the worldwide. They created many well-known Disney cartoon characters on their movies, such as Mickey Mouse and Donald Duck.
Disney Empire was not built in one day, the Disney was very successful at turning ...view middle of the document...
They continues to innovating and creating the best product to consumer. Their portfolio is so diversified also offers the company substantial advantages in terms of risk mitigation. This is why they can maintain stable revenues and profit growth in their financial statement.
Despite all this, the Walt Disney Company still have to face some risks. Most of Disney’s products and services are priced at a premium and therefore subject to risk in a recessionary period. Disney expanded their business to worldwide, they have to adapt to the sociocultural and economic differences in each of their host countries. At the same time, political and legal differences, such as laws and regulations were obstacle to international trade. In order to be in Japan, France and China territory, they have to follow not only American rules but also Japanese, French and Chinese rules, following their standards and paying their taxes. Another risk of expanded business is a balance must be achieved that embraces diversity in branding but also maintains a healthy risk adversity to any potential threats to its brand integrity.
The opportunities for Disney is continue to strengthen operations by identifying new opportunities in the current target markets, innovate, richness, the vibrancy and the dynamics of the movie are preserved in the family experience not only for teenagers but also for families, takes their “magic” to a whole new level. Disney could expand their new parks and resorts as a benchmark in other countries instead of exist host countries, sell and advertise their consumer products in the parks, through more visitors come to the park, and more people have better understanding of Disney culture. Therefore, this action not only result in increased sales in parks and consumer products, but also enhanced the revenues in Disney’s media networks, studio entertainment and interactive media. Overall, there is a great potential global market for Walt Disney Company to develop.
Form 10-K, “The Walt Disney Company”, for the fiscal year ended October, 2010, Washington DC 20549.
Official website of the Walt Disney Company, “our business”