The Walt Disney Company
FIN534: Financial Analysis
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 …show more content…
In order for the Walt Disney Company to maintain its competitive foothold in this industry, it needs to maintain technological advancements. Though these advancements are necessary, consumers may see an increase in prices for services, in addition to, advertisers seeing an increase in prices for advertising. In addition to the competition, the broadcasting portion of the Walt Disney Company has to deal with regulations from the US Federal Communication Commission as well as overseas regulations. Datamonitor states, “Changes in any of these regulatory areas may require the company to spend additional amounts to comply with the regulations, which in turn could affect its profitability” (2011). Also Walt Disney Parks and Resorts have to compete with hefty competition from other parks and resorts such as Six Flags and Xanterra Parks and Resorts. In order for the Walt Disney Company to maintain its brand and competitive edge in this market, especially with the economic downturn, they need keep their rates affordable. In addition to competition at the parks and resorts, the Walt Disney Company needs to maintain a safe environment for travel and tourism. The Walt Disney Company could possibly face intense weather conditions, natural disasters, health concerns,