The Walt Disney Company Essay

2102 Words May 21st, 2012 9 Pages
Running Head: The Walt Disney Company

FIN534: Financial Analysis
Heather Kain
Strayer University
Dr. John Karaffa
November 30, 2011

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
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Disney's 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 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, “A broad and diversified revenue base insulates the company from economic cycles in one industry and diversifies the company's 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 significant industries. For example, Disney-ABC Group

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