Walt Disney Weaknesses

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The Walt Disney Company is the second biggest corporation of animation, multinational mass media and entertainment conglomerate based in Walt Disney studios in Burbank , California , USA and John Alan Lasseter is the current CEO . The company was created in 1923 by the brothers Walt and Roy Disney, it was first named Disney Brothers Cartoon Studio. In July 18 , 1955 Walt Disney Company opened the first amusement park calls Disneyland in Anaheim , California , and from this day till now it opened 14 more parks. The company has been a component of the Dow Jones Industrial Average since May 6, 1991 and in the last 5 years the stock increased dramatically by 138.05% . Over the past five years Walt Disney Co. increased dramatically in its …show more content…

What makes the company’s market brand strong in the US Is extensive customer reach of the company's cable networks operations. It enables higher margins for the company and highlights Walt Disney's appeal which facilitates better bargaining power with multi-channel video programming distributors, the primary revenue source for Walt Disney. Additionally, the companies which have broader reach enjoy higher pricing for the advertisement sales on the channels. Furthermore, the company has a strong brand portfolio. The company has built a collection of some of the world’s best media brands that provide a lot of opportunities for the company to continue to create high-quality content. On the other hand, the company has few weaknesses. First, what weakened the company because of internal negligence is unfunded pension benefit obligation which forces the company to make additional cash contributions which reduces cash flow available for growth initiatives. Second, the company concentrates on matured markets such as the US and Canada that increases the country specific risks to the company and restricts its growth opportunities compared to its competitors. Accordingly, the company's large subscriber base and reach provide stability to the company's operations.

During the last year, Disney’s share price rose by 8.79%. The most dramatic change , shown in the graph below, occurred in October when the share fluctuated and reached a peak in May of $116 per share. Moreover, there was a growth of 21.3B in net income, over the past year. Also the earnings per share had a slight rise from $4.26 to $4.90 . Overall, the last financial year was full of fluctuations , and the company’s share rose gradually, although in the last few months it has suddenly

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