Economics of Walt Disney Company
Products
Creations such as Mickey Mouse, Donald Duck, Saludos Amigos, Fun and Fancy Tree, Sleeping Beauty, are famous products for Walt Disney Productions reincorporated in 1929. It has also diversified into live-action film production, television, travel, theatre, radio, publishing and online media. The company is well known for products of its film studio and operation of ABC broadcast television networks such as Disney Channel, ESPN and ABC Family. It also owns and licenses theme parks around the world. These products can generally be segmented as, media networks, parks and resorts, studio entertainment, consumer products, Disney online (Polsson, para 4).
Competitors
Disney faces quite a number of competitors since it has a wide scope of operations. The major competitors are the other large media conglomerates, such as News Corporation (NWS) and Time Warner (TWX), Viacom and CBS. Disney has been able to take a considerable share of the market due to its strategic positioning. In the Box Office Market share, Disney has been able to take thirteen per cent of the total market, just nine per cent below this market leader, Time-Warner. In other markets, it has also been able to command a substantial market share. It has quite significantly thrived in the market. It has a strategy of merging and acquiring competing companies, such as Capitol cities ABC Inc. Thereby reducing the level of competition and at the same time acquiring new tactics and strategies to thrive in the market (The Walt Disney Studio, para 6).
Financial Status
Disney reported a net income of 844 million for the first quarter of this financial year (2010). This is slightly lower than last years first fiscal quarter of 845 million. This was however above the average analysts expectations, as earnings per share were expected to be 38 cents per share but which amounted to 44 cents per share. This was due to an outstanding performance from the companys TV networks. According to The Walt Disney Company (para, 11) on January 13, 2010, the closing price of its common stock traded on the New York Stock exchange was 31.29 per share this stock has shown an upward trend.
The acquisition of Marvel Entertainment Inc. has helped the company in this time when the economy is facing a recession, which has provided an opportunity for long term growth and value creation. It seems to be a strategy that Disney has adopted to cope with recessionary periods, since in 1996, it acquired Capitol CitiesABC Inc. which created the worlds largest entertainment Company. This is a strategy that has helped Walt Disney Company to grow over the years. It has also been in partnership with major companies in movie productions and in television networks. The company formed Disney Television Network in partnership with Coca Cola Company (The Walt Disney Company, para 72).
Conclusion
Walt Disney Company is a company that has shown tremendous improvements from a simple movie studio to a world leading media and entertainment conglomerate. In my view, the company offers competitive products which are based on its strategy of delivering quality branded content to people around the world. It works towards making products which will satisfy both the parents and the children.
Disney however, requires being more innovative and using technology extensively, in order to come up with products that cater for the consumers changing and evolving needs. It will not be easy for it to dominate the market as competitors are up to the task of dominating the market. It will need to differentiate its products so as to enjoy customers loyalty.