The Walt Disney Company has been around since 1923 and was founded as a cartoon studio by Walt Disney and his brother Roy and has since then expanded its divisions. These divisions consist of theatre, radio publishing, theme parks & resorts. Most people today refer to the Walt Disney Company as just Disney and when anything about Disney is mentioned the first thing people think about is Mickey Mouse. The Walt Disney Company has remained popular throughout the years due to its mission statement.
“The mission of The Walt Disney Company is to be one of the world's leading producers and providers of entertainment and information. Using our portfolio of brands to differentiate our content, services, and consumer products, we seek to develop the most creative, innovative and profitable entertainment experiences and related products in the world” (Farfan, 2015). It is clear from the mission statement that Disney wants to be best amongst the rest. They want to create and build things which will continue to make an impression on the clients so that they remain loyal to Disney company and years to come.
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Disney ( NYSE: DIS ) experienced a surge in revenues and profit between 2012 and 2015, notching lots of box office big business wins and blockbusters. Share prices of Walt Disney surged to 180% in 4 years. However, the last couple of years did not work out that way since the stock of Disney has been trading sideways since the commence of 2016 ( Bylund. 2017) . In 2017, Disney shares increased by 12% whereas the S&P 500 market benchmark increased by 38%. The company outdid wall street earnings estimates in three out of four reports that were published in 2017. However, Disney fell short of revenue anticipation in all the four cases. The core of the problem that Disney faces lies in its cable TV networks and broadcasting ( Bylund. 2017) . Disney anticipated that Rising broadcast affiliate fees would increase revenue however it backfired. Also, higher programming costs for main sports contracts troop operating profits even lower. Despite all the challenged the company faced in the last couple of years Disney managed to make a profit.
The table below shows the revenue from March 2017 to February 2018 portraying the how revenue has been affected since 2017
I learned that the main aim of Disney is that they feel that “company sales does not rest on an aggressive sales force rather on the decision of the customers to purchase a particular product. Therefore, Disney creates resorts, themes, movies and products basing on the satisfaction and approval of their clients since they aim to make the clients happy.
I would invest my money in Disney because it is a company that has envisioned for the future and that is depicted in the revenue that the company earns on a yearly basis. By the virtue that Disney is structured in that customer satisfaction is their priority then it will continue to experience profit that is why I will invest my money in the company (The Walt Disney Company, 2011).
Although I feel that this company is a great one to work for, I’m not sure if it fits my needs now. I probably would have enjoyed it more when I was a bit younger. It seems that this company cares quite a bit about its name, branding, and employees but it is much too large of a corporation for my tastes.
Disney proposes to create its application that works as Netflix after their contact with Netflix expires. With this said Disney has a great future since it will be able to sale the movie they produce to the customers directly hence maximizing the profit.
I recommend that Disney should reduce their broadcast affiliate fees and programming costs for main sports to attract many clients. Absurd coast price would drive their customers to their direct rivals.
References
Farfan, B. (2015). Company Mission Statements – Complete Lists of World’s Largest Retail Missions. About Money. Retrieved from
http://retailindustry.about.com/od/retailbestpractices/ig/Company-MissionStatements/Walt-Disney-Mission-Statement.htm
The Walt Disney Company. (2011, September 5). Chapter 2: Strategic Planning for Competitive Advantage. The Walt Disney Company. Retrieved from
http://thewaltdisneyco.blogspot.com/2011/09/chapter-2-strategic-planning-for_11.html
Anders Bylund. 2017. Will 2018 Be The Walt Disney Company's Best Year Yet?. Retrieved from
https://www.fool.com/investing/2017/12/28/will-2018-be-the-walt-disney-companys-best-year-ye.aspx
