Disney Analysis
Disney Strategy Analysis
Introduction
The Walt Disney Company is the world largest media conglomerate in terms of revenue. In year 2012, Disney generates USD 43 billion revenues, with profits of USD 10 billion. Disney operates in diversified entertainment and broadcasting industry, broken down into 5 business segments: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products and Interactive. Disney major competitors in the media industry are News Corp and Times Warner. Time Warner and News Corp mainly involve in broadcasting, publishing and entertainment industries. Within the last twenty years, Disney has grown from a film making company to a media conglomerate, through several acquisitions, the major was acquisition of Pixar in 2005. The revenue has increased massively from $7.5billion, 1992 to $43 billion in 2012, nearly 5 times increase. Disney has been a successful firm compared to its major competitor. News Corp generated revenue of $34 billion for 2012 while Times Warner has revenue of $29billion in 2011 (2012 financial statement not yet released), both fall short of Disney $43 billion revenue. On 11th February 2013, return on capital employed for Disney is 35.4%, while for News Corp is 30.16% and Times Warner 46.4%. The market capitalisation for Disney on the same date is $99 billion, Times Warner $48 billion and News Corp $23 billion. Based on the return on capital employed, market capitalisation and revenue generated, it can be concluded that Disney has been relatively successful compared to its major competitors.
Five Forces of Strategy (Porter)
Competitors
Porter suggested five forces that can shape the industry competition. Analysis of the five forces enables a company to react better to the threats and opportunities lying in that particular industry. The first force that will be discussed is the most common one, which is the rivalry with competitors. Disney main competitors are Times Warner and News Corp, who are also media
Introduction
The Walt Disney Company is the world largest media conglomerate in terms of revenue. In year 2012, Disney generates USD 43 billion revenues, with profits of USD 10 billion. Disney operates in diversified entertainment and broadcasting industry, broken down into 5 business segments: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products and Interactive. Disney major competitors in the media industry are News Corp and Times Warner. Time Warner and News Corp mainly involve in broadcasting, publishing and entertainment industries. Within the last twenty years, Disney has grown from a film making company to a media conglomerate, through several acquisitions, the major was acquisition of Pixar in 2005. The revenue has increased massively from $7.5billion, 1992 to $43 billion in 2012, nearly 5 times increase. Disney has been a successful firm compared to its major competitor. News Corp generated revenue of $34 billion for 2012 while Times Warner has revenue of $29billion in 2011 (2012 financial statement not yet released), both fall short of Disney $43 billion revenue. On 11th February 2013, return on capital employed for Disney is 35.4%, while for News Corp is 30.16% and Times Warner 46.4%. The market capitalisation for Disney on the same date is $99 billion, Times Warner $48 billion and News Corp $23 billion. Based on the return on capital employed, market capitalisation and revenue generated, it can be concluded that Disney has been relatively successful compared to its major competitors.
Five Forces of Strategy (Porter)
Competitors
Porter suggested five forces that can shape the industry competition. Analysis of the five forces enables a company to react better to the threats and opportunities lying in that particular industry. The first force that will be discussed is the most common one, which is the rivalry with competitors. Disney main competitors are Times Warner and News Corp, who are also media