Walt Disney Case Study
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The Walt Disney Company is a diversified worldwide entertainment company. The company operates in five business segments: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products and Interactive Media (The Walt Disney Company). It has theme parks in Florida, California and Hong Kong. The Walt Disney Company is the leader in international family entertainment.
Although last years revenue for both the Parks and Resorts and the Studio Entertainment division fell (3.1 billion and 2.8 billion, respectively), Disney still turned a profit. Profit is defined as any additional revenue in excess after all operating/production expenses are met. Profits are important to Disney, or any other business for that matter, because it gauzes growth.
Profits are the bottom line of a business. Generating profits is important because investors need to know that the business is a worthwhile investment.
The current state of the worlds economy has disabled tourist from splurging during this tough economic times. The recession has led visitors to spend less money in its theme parks. People will always flock to the Disney parks, but cutbacks are essential evils to even plan a family vacation. Visitors will buy food and drinks, but not as many souvenirs and trinkets.
The Walt Disney Company is a multinational corporation. From its humble cartoon company beginning in the 1920s, Disney was grown to become a successful and powerful corporation today. During its 80 years existence, Disney has overcome diversity, wars, and economic crisis that would have brought many corporations to their knees.
The Walt Disney Company has maintained its strengths and minimized it weaknesses with creative and innovative ideas and techniques. As the business practices have evolved, so has the Walt Disney Company. This company is hitting on all cylinders, something I am sure its shareholders are very aware and proud of!
As aforementioned, Disney is a leading diversified international family entertainment and media enterprise. The revenue generated from all of the Walt Disney Companys primary businesses – theme parks, cable television, movies, consumer products — helped the entertainment conglomerate increase the companys bottom line. Disneys wide diversity is what drives it growth and strong earnings. It owns some of the biggest names in the entertainment industry: ESPN, ABC, Disney theme parks, Disney cruise lines and Pixar (Barnes, 2013), just to name a few. Unlike other entertainment companies, Disney does not rely solely on films, TV, or parks. The Walt Disney Company is well diversified and uses its wide reach to create one of the most recognized and popular brands in the world.
References
Barnes, B. (2013, May 7). Gains at Disney Parks Help Lift Profit. The New York Times.