Theme:
The Walt Disney Co. is an enigma in these rough economic times for the sole purpose that they show minimal signs of slowing down. Mickey Mouse has his hands dipped into everything and from an investor’s standpoint that’s a good thing because that equals diversification, and in turn, diversification lowers risk. The Disney Company operates in several areas of the media and entertainment industry. They have recently acquired Pixar, which consistently provides box office record sales with their animated films. Along media entertainment lines, Disney also operates dominant media channels ABC and ESPN. These are two channels that carry with them a strong loyal following. Sports ...view middle of the document...
They really target their audience from a young age and that awareness from their market does not dissipate. This was best stated by an article on Bnet: “With brand awareness from such young consumers, it's no wonder Disney Corp. executives are singing Hakuna Matata, Means no Worries all the way to the bank.” The Company is also opening up theme parks and resorts all over the world. In an economic downturn, you would expect them to hold back but Disney just keeps on expanding and people keep on attending. In an article by Wall Street Journal on July 31st this year, the analysts had stated that the company beat forecaster’s expectations and the company maintained strong attendance along with increased park revenue by 5% to $3.04 billion. So you see, all of these segmented parts to the company come together as one and provide Disney with the economic stability it needs to function and prosper and in turn it reflects upon their stock price and their ability to reward their shareholders.
Business Analysis
Company Profile
The Walt Disney Co. is the world’s most dominant and well-known entertainment company. Mickey Mouse’s white gloved hands are dipped in everything from the film industry, domestic and international theme parks, television, and cruise ships to retail shops bursting with Disney toys and memorabilia. The Walt Disney Co. has established a dynasty in entertainment that is so well diversified that a child could be watching the Disney channel in one room, while his mother is watching Lifetime cooking dinner, and his father is kicking back after a tough day at work watching sports recaps on ESPN while planning a getaway for his family to Disney World in Orlando, FL. Not to mention that after dinner, the family will most likely meet in the living room to watch ABC’s prime time lineup.
The Walt Disney Co. operates in several areas of the media and entertainment industry. Disney produces studio entertainment from companies such as Pixar, Touchstone, Miramax, and Walt Disney that continually hits the market with numerous successes from Toy Story to Pirates of the Caribbean. Disney’s television companies include ABC, Lifetime, Disney Channel, The History Channel and ESPN. As far as theme parks, what Disney is perhaps most well known for, they operate Walt Disney World Resort in Florida, Disneyland Resort in California, Tokyo Disney Resort, Disneyland Resort Paris, and Hong Kong Disneyland Resort. Disney also boasts the Disney Cruise Line, ESPN Zone, Disney Vacation Club, and even claims a Disney Virtual Magic Kingdom website (vmk.com). In addition to all of these major lines of entertainment, Disney also profits from consumer products such as toys and children’s books sold in its World of Disney Stores and many other retailers.
Macroeconomic and Industry Analysis
Standard & Poor’s currently rates the sub-industry of movies and entertainment as neutral, citing that the market is saturated with physical distribution of DVDs...
