Disney An analysis of the global giant which has been a part of every individual growing up years and its current market situation across the globe
"When you speak of the world's largest media conglomerate, the first name that comes to mind is The Walt Disney Company. And when you ask the children across the world about a cartoon character; the first name they would say is of Mickey Mouse. That is an impact The Walt Disney Company has created across the world. Incorporated in 1923 as Disney Brothers Cartoon Studio, the company today is known as Walt Disney Productions and enjoys revenue worth of more than $38 billion as of 2010. The business of the company is not limited to cartoons but it has over the years diversified into film production, travel, television, theatre, radio and media. It also runs cable television channels like Disney channel, ESPN and many more. Mickey Mouse is the official mascot of the company.
Globally the company runs on an operating income of more than $6 billion which includes all of its business groups and has 149,000 employees in different countries. The company structure is such that it has four divisions running simultaneously which includes: Parks and Resorts, Disney Consumer Products, Media Networks and Disney Studios. The current chief operating officer is Robert Iger who is responsible for various developments and due to which the time in Disney is called The Iger Era. Recently, the media networks group known as Interactive Media faced losses of $1 billion globally, all the other groups enjoyed profits in the last quarter.
This goes onto show that a synergy between the four domains is lacking and Disney has to work on to synergize all domains and keep check on the profitability of each domain. Being the largest entertainment company, having thousands of employees and being known as the most popular global brand are its strengths. But the company has to look out for the high operating cost on which it runs all this. Several welfare groups have accused the company for different reasons. It is said that the working conditions of the employees are not up to the mark. The company faces a major threat in the form of retaining innovative people and high global competition.
It is still regarded among the top respectable companies in the world. Investment has to be made in terms of marketing its products and channels and on recruiting innovative talent from the global market in order to stay on the top. Will Disney be able to face the onslaughts of different firms coming up that are into entertainment? Will it be able to diversify more and increase its target audience? Will it just remain a global company for children only?"