Value proposition: The Walt Disney Company is a global industry leader in the entertainment industry. Our company is a diversified entertainment and media company. Our major products and services include entertainment, books, magazines, comic books, media networks, cable programming, radio broadcasting, television broadcasting, video games and toys. We also operate resorts, hotels and other facilities, vacation club, and cruise lines, linear networks, direct-to-consumer video streaming services. Our content sales/licensing provides film and television content, home entertainment distribution, music and staging and licensing of live entertainment events.
Our company has succeeded in all areas we ventured into as a result of our standing tradition of curiosity, reinvention, and innovation. We are the most watched in terms of off-screen and onscreen entertainment. We are the most watched, most visited, and most loved by people of all ages around the world. Our company became the largest media power house on the planet after the acquisition of the 21st Century Fox for $71.3 billion. Our amusement and theme parks are top notch attracting over 50,000 visitors daily which are operated across six resorts and they rank as the most visited parks in worldwide. We strive to remain among the top “World’s Most Admired Companies’ on Fortune’s annual list this year and beyond through exciting additions on our horizon.
Profitability: our company has been posting positive results in terms of net income. Our net profit margin for the year ending 2022 was 3.80%. There was a growth year-over-year of 53.49% in our net profit on June 30, 2022. The company posted $3.142 (a year-over-year jump of 179.04%) billion net profit for twelve month ending on June 30, 2022. A net income of $1.28 billion was posted for the Q1 of fiscal 2023 which was higher than the $1.1 billion posted for the same quarter in the previous year.
Disney’s Annual Net Income since 2010 (in $US Billion)
| Year | Net Income in $US Billion |
| 2009 | $3.307 |
| 2010 | $3.963 |
| 2011 | $4.807 |
| 2012 | $5.682 |
| 2013 | $6.136 |
| 2014 | $7.501 |
| 2015 | $8.382 |
| 2016 | $9.391 |
| 2017 | $8.980 |
| 2018 | $12.598 |
| 2019 | $11.054 |
| 2020 | $2.864 |
| 2021 | $1.995 |
| 2022 | $3.19 |
| 2023 (Q1) | $1.28 |
SWOT: Strength
Strategic: Market position through a portfolio of strong brands. Disney has a very strong brand portfolio. our brand name and logo are easily recognizable. Our strong brand portfolio and established presence enables us to attract new customers while retaining existing ones, thus enhancing revenues and margins. In the Forbes most valuable brand list, Disney ranked 7 with a brand value of $61 billion.
Geographical presence: we operate in a wide a territory of America, Asia-pacific and Europe. this has helped mitigating risks associated with dependence on a specific region.
Fantastic Portfolio: our impressive portfolio includes the collection of some of the world’s best brands including ESPN, Freeform (formerly ABC Family), Pixar, Marvel, Twentieth Century Studios, Lucasfilm, and FX. more brands under our portfolio increase our revenue streams.
Diversified services: Disney provides a wide range of products and services through our operations under several business segments like direct-to-consumer (D2C), studio entertainment, movies, parks, activities, and merchandise. Movies may also be enjoyed in your house through streaming on Disney+ or going to Disney’s theme parks, and resorts, or watching Disney movies in theaters.
Weakness:
Low liquidity position
Low liquidity is an indication of the decreasing ease in funding the company’s day to day operations, which limits its ability to capture growth opportunities in the market.
Vulnerability to competitor: Disney never compete with its competitor through advertisement. the only time we advertise is when launching a new product or new movies.
Opportunities:
Positive outlook for the global leisure attractions market: The global leisure attractions sector has been growing strongly in recent years and the market is expected to record double digits growth within the forecast period.
Technology Driven: our company is driven by innovation and technology and this will help to attract all ages of consumers. We can use our stable financial position in the past few years to leverage on this.
Live streaming services: I believe that if we focus more on the online streaming service, Disney + . It will give us a competitive advantage with our competitors.
Threat:
Intense competition: we operate in highly competitive markets. Walt Disney’s Linear Networks and DTC streaming services competes for viewers primarily with other television networks, independent television stations and other media, such as other DTC streaming services and video games.
High cost of training: Disney has consistently made significant investments in its workers’ growth and training.
Piracy. This poses a very great risk to our income. With advancement in technology, copying, transmitting and distributing copyrighted material much easier and make movies available freely online
Product or service singularity: Disney+ live streaming. Disney has significant advantages with Disney+. It can draw from a deep vault of its own animated and live-action movies and from popular shows on its own cable networks — as well as from company properties like Marvel, Pixar, National Geographic and Star Wars. And that’s not counting the platform’s slate of original TV shows and movies (New York Times)
New product or Service projections: Our online streaming platform (Disney+) should be spiced with innovation as the platform seems to be the new cashcow for our company. These platforms are currently high on demand, they can earn a good market for themselves with our world-class creative and business teams powering outstanding performance at our domestic theme parks, big increases in live-sports viewership, and significant subscriber growth at our streaming services. With 14.4 million Disney+ subscribers added in the fiscal third quarter (2022), we now have 221 million total subscriptions across our streaming offerings.”
- New York Times: https://www.google.com/amp/s/www.nytimes.com/article/best-tv-shows-movies-disney-plus.amp.html
- Angela (2023): Disney SWOT Analysis 2023: A Magical and Detailed Report. https://swothub.com/disney-swot-analysis/
- DISCOVERY Disney SWOT Analysis: https://www.edrawmax.com/article/disney-swot-analysis.html
- Ovidijus Jurevicius (2022): SWOT Analysis of Walt Disney. https://strategicmanagementinsight.com/swot-analyses/walt-disney-swot-analysis/
- https://thewaltdisneycompany.com/app/uploads/2022/08/q3-fy22-earnings.pdf
- MarketLine: https://advantage-marketline-com.ezproxy.snhu.edu/Company/Summary/the-walt-disney-company
- Daniel Shvartsman (2022): The Walt Disney Company: The World’s Most Versatile Entertainer. https://www.investing.com/academy/statistics/walt-disney-facts/
Greatdeal 