Slide 2: Presented by: The Education of Walt Disney : The Education of Walt Disney Born in Chicago in 1901
Enrolled in Kansas City Art Institute at age 14
“Iwerks-Disney Commercial Artists” formed with friend in 1920, company went bankrupt in 1923
Moved to Hollywood founded Disney Brothers Cartoon Studio
Developed series, Oswald the Lucky Rabbit, with brother Roy but did not obtain copyright for Oswald
Universal Pictures retained copyright which resulted in a loss revenue and his staff Early History : Early History Walt Disney produces Steamboat Willie on his own
1928 Mickey Mouse is born
Company is reincorporated as Walt Disney Productions in 1929
1932 Disney received Academy Award for creation of Mickey Mouse
1935 Mickey Mouse is filmed in color
Disney launched spin-offs from Mickey Mouse that include: Donald Duck, Goofy and Pluto Other Key Dates : Other Key Dates 1937: Snow White and the Seven Dwarfs, Disney's first full-length animated film, debuts.
1940: Pinocchio and Fantasia released.
1955: The Mickey Mouse Club debuts; Disneyland opens in Anaheim, California.
1966: Walt Disney dies of lung cancer.
1971: Walt Disney World opens near Orlando, Florida; Roy O. Disney dies.
1982: EPCOT Center opens on the grounds of Walt Disney World Disney’s Growing Entertainment Empire : Disney’s Growing Entertainment Empire 1989: Disney-MGM Studios Theme Park opens near Orlando
1992: Euro Disney (later named Disneyland Paris) opens.
1996: Disney acquires television station Capital Cities/ABC for $19 billion; Radio Disney debuts.
1998: Animal Kingdom opens in Walt Disney World, Florida.
1999: Disney Cruise Line begins operations with the Disney Magic
. 2001: Disney's California Adventure opens next to Disneyland; Disney acquires Fox Family Worldwide for $5.3 billion.
2003: Roy E. Disney--son of Roy O. Disney, last of the founding family and Stanley Gold quit the Disney board and starts Save Disney.com in an attempt to oust CEO Michael Eisner. Porter Analysis : Porter Analysis Current Structure and Corporate Strategy : Current Structure and Corporate Strategy 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 Walt Disney Corporate Structure : The Walt Disney Corporate Structure CEO ROBERT A. IGER – PRESIDENT AND CEO OF DISNEY, INC.-2005 succeeded Michael Eisner
Parks and Resorts
Internet Entertainment Source: The Walt Disney Company Annual Report Corporate Responsibility : Corporate Responsibility Robert A. Iger: “While there's always room for improvement, we seek to be a good corporate citizen and hope to be as admired for the way we do business as for the quality of the family entertainment we create.” CORPORATE STRATEGY : CORPORATE STRATEGY CORPORATE STRATEGY : CORPORATE STRATEGY Future Capital Expenditure Highlights : Future Capital Expenditure Highlights Parks & Resorts:
California Adventure Expansion “Cars Land” (2012)
$1.1 Billion price tag
FIFA 2010 World Cup on ESPN “Matches in 3D & HD”
I-PAD Applications For ABC.Com & ESPN 360,
Marvel Comics & DISNEY XD.COM
Studio Entertainment: Acquisition of Marvel
$4 Billion Acquisition CARS LAND : CARS LAND Disney: Capability Bundling : Disney: Capability Bundling Films
INTERACTIVE ONLINE MEDIA
http://disney.go.com/cars/ CARS TV Show Merchandise Food Items Theme Park DISNEY Topics: Miramax Films : DISNEY Topics: Miramax Films ACQUISITION IN 1993 FOR $80 MILLION
CURRENTLY IN NEGOTIATIONS SELLING AT BETWEEN $625- 700 MILLION
AWARD WINNING FILM LIBRARY INCLUDES – NO COUNTRY FOR OLD MEN & PULP-FICTION DISNEY Topics: MARVEL : DISNEY Topics: MARVEL DISNEY Topics: Social Network Website TWITTER : DISNEY Topics: Social Network Website TWITTER ON-LINE MARKETING- 100 MILLION USERS
HOLLYWOOD AD SPENDING CUT BY 8% 2009
“ANY WAY TO GET THE WORD OUT IN AN ERA
OF STRETCHED BUDGETS”
NEW MARKETING CHIEF SWOT Analysis : SWOT Analysis SWOT Analysis : SWOT Analysis Strengths
Diversification of their products and services-produces balance revenue streams:
Well known characters
Widespread cable networks
Strong brand name-ranked 9th in top 100 brand names SWOT Analysis : SWOT Analysis Weaknesses
Weak performance of studio entertainment
Produced failures such as Fantasia 2000, 102 Dalmatians and Treasure Plant
Overdependence on the North American markets
75% of revenue is derived from North America market
Little presence in emerging Asian Markets; accounted for only 6.7% of company's revenues SWOT Analysis : SWOT Analysis Opportunities
Acquisitions to strengthen their position in the market
Jetix Europe-has programming geared toward kids 6-14, broadcasts in 58 countries
Club Penguin-adds to online assets
Improving presence in emerging Indian and Asian markets
Agreement with DreamWorks to distribute six films a year
Positive market outlook for the global media SWOT Analysis : SWOT Analysis Threats
Intense competition in each business line:
Media- CBS and Fox Broadcasting
Parks and Resorts-Xanterra Parks and Resorts
Piracy in the entertainment industry
Regulatory risks- must comply with FCC regulations, which can hinder future cash flow
New technology compromises ability to protect intellectual property Financial Analysis:Stock Price : Financial Analysis:Stock Price Traded on the NYSE under the ticker DIS
Current stock price: 37.65
Industry leader in market capitalization: 72.85B
Beta of 1.21 indicates stock is less volatile than competitors Financial Analysis:Income Profit Ratios : Financial Analysis:Income Profit Ratios Highest net income
In good position with a ROA of 5.29%
Despite recession still a profitable company Financial Analysis : Financial Analysis Disney is spending more money to make the same amount of sales
Lowest current ratio
Current ratio is still above 1 Recommendations : Recommendations Maintain corporate culture and positive image, provides company with competitive advantage and ability to charge premiums for consumer products
Leverage strong presence in business units such as media and parks to penetrate new markets in other lagging business units: studio and online entertainment
Diversify products-allow kids to grow with Disney, teen and young adults
Expand presence in Indian and Asian Markets