Assignment 3

Walt Disney

Mission statement

The Walt Disney Company's objective is to be one of the world's leading producers and
providers of entertainment and information, using its portfolio of brands to differentiate
its content, services and consumer products. The company's primary financial goals are
to maximize earnings and cash flow, and to allocate capital profitability toward growth
initiatives that will drive long-term shareholder value.

Strengths
•    It is the largest media and entertainment company in the world.
•    It has become one of the biggest Hollywood studios.
•    Disney Company owns 11 theme parks and several channels.
•    Disney employees 150,000 people.
•    Innovative ideas
•    Global standardization
•    It is among the popular brand names in the world.
•    It has well established divisions Walt Disney Studio Entertainment, Disney-ABC
Television Group, Disney Interactive Media Group, Disney Consumer Products, Walt
Disney Parks and Resorts, Disney Interactive Studios.
•    Increasing trends in overall revenues and profits.
•    Disney holds US$ 62.497 billion of assets.
•    Popular characters
•    High brand awareness among the people.
•    Differentiation
•    The Walt Disney logo is famous.
•    Walt Disney was ranked 8th in the Top 100 Global Brands.
Weaknesses
•    High operating cost
•    Frequent change in top management
•    The $1.8 Billion park have only 16 attractions.
•    Religious welfare group protest against the release of material which was found
offensive by many people.
•    Poor working conditions in factories that produce their merchandise.
•    Disney was also criticized by animal welfare group for their caring procedure for
animals at Disney’s Animal Kingdom theme Park.
•    Poor management.
•    Disney has been blamed of having sexual implication or references concealed in
some of their animated movies, including The Lion King, The Little Mermaid, Aladdin,
Who Framed Roger Rabbit, and Disney’s original releases of The Rescuers.
•    High investment with high risk involved.
•    Continuous innovative ideas are required to retain the attention of customers.
•    Limited range of target audience mainly Children.
Opportunities
•    Move into different segments
•    Proper inventory management
•    Market development in untapped countries.
•    Reduction in operating costs.
•    Disney music channel
•    Benchmarking to improve management practices.
•    Disney school of management and training
•    Online Websites
•    Develop more attractions for theme park.
Threats
•    Security Threats due to terrorism
•    Employee retention
•    High competition in Media Industry.
•    Facing fierce competition from Paramount Parks, Universal Studios and Six Flags
Theme Parks.
•    Social and ethnic groups.
•    Government policies
•    High demanding market in terms of innovation.
•    Increasing salaries and labor cost.
•    Recession
•    Maintain product differentiation.
•    Tight competition in national and international markets.
•    Searching, paying and retaining innovative people.
•    Piracy