4.1 Strengths, Weaknesses - Competitors
The Walt Disney company has beaten the S&P 500 for the past 16 years (3x) but has had problems to repeat the performance in the past 5 years. Disney's brands are one of the strengths of the company together with their core capability of content creation. Additionally the digital library owned by the company gives them an important source for TV programming or DVD creation. We will describe its competitors (AOL and
Viacom are the main ones, but Fox, Sony and Six Flags can be considered also as competitors to Disney) :
* AOL Time Warner (Media Entertainment Conglomerate) o AOL internet service is leader in the market, advertising in this sector is more resilient than it seems o Filmed entertainment group has continued to show strong revenues. o Networks group (especially HBO and Turner) have implemented cost saving measures and keep strong subscription revenues.
* Viacom (Media Entertainment Conglomerate) : o Cable Networks keep their strength and are oriented towards an important demographic group o CBS has outperformed the other main competitors in the last season o Viacom has been able to keep better prices for advertising than the competition given its ratings. o Blockbuster's gradual switching from VHS to DVD is expected to generate higher margins
* Six Flags (regional theme park operator). o The 38 parks it operates had attendance of nearly 46.4 million in 2000. o The Company also owns an exotic wildlife and marine park.
* Fox Entertainment Group Inc (multi-faceted entertainment company) o It has operations in lmed entertainment o A strong participant with Television Stations, Television Broadcast Network and Other Television
Businesses
o Producer of cable network programming.
* Sony Entertainment Pictures o Sony Corporation works in the development, manufacture and sale of electronic equipments. o It also produces and markets entertainment products and instruments. o The