Question 3
9-Cell Industry Attractiveness/Business Strength Metric for the Walt Disney
High
Industry Attractiveness
The above 9-Cell Industry Attractiveness/Business Strength Matrix shows the strengths and industry attractiveness of the business units of the Walt Disney. The resort and parks business units have the high industry attractiveness and strong competitive position (business strength) as compared to the other business units of the company. The media network business unit has the high industry attractiveness and the strong business strength /competitive position. The studio entertainment has the average market attractiveness and has the weak business strength /competitive position. The interactive media although has average industry attractiveness but it has better competitive position and is growing as a strong business unit The consumer product has low industry attractiveness and weak business strength/competitive position as compared to the other four business units of the Walt Disney.
9-Cell Industry Attractiveness/Business Strength Matrix shows that the park and resorts media networks are the strongest business unit of the Walt Disney.
Question 4
Yes, Walt Disney’s portfolio exhibits good strategic fit .The Walt Disney is one of the most recognizable entertainment company of the world. It has the wide range of unique product portfolio. The company has gain expertise in technology to catch up and to potentially takeover their competitors. For example the cost that was incurred long ago by the studio was to develop the characters like Mickey Mouse and Cinderella and now is continuously generating returns for the company in gaming/video productions, theme parks and hotels/cruise ships. The assets are deployed by the company across all business units in order to drive high shareholders value.
Walt Disney has the Strong customer service, Media Networks and Broadcasting division. The Growth from cable and satellite operators is creating even more potential for Disney to make money with their network. The company has the opportunity to invest in building new theme for their parks in order to satisfy the increase in theme park attendance, guest spending, and hotel occupancy.
Question 5
The financial ratios of 2011 shows increase in the financial performance of the company as compared to the year 2012.The liquidity ratios of the company increased from the year 2001 to 2011 that includes the current ratio and quick ratio. Similarly the profitability ratios that is Gross profit margin, net profit margin, return on asset, return on asset and return on investment, the Walt Disney shows increase from the year 2010 to 2011 whereas operating profit margin shows decrease in the year of 2011 as compared to the year 2010.The sales and net income growth ratios also shows increase in the performance of the company. The debt ratios which includes debt ratio and debt to equity ratio also shows increase as compared to the year 2010. The overall financial performance of the company shows increment in the year 2011 as compared to the year 2010(see excel file).
Question 6
The company should improve their advertising strategies to promote the entertainment that should target more mature customers. The company should also build new attractions in every park and resort to stay appealing to their customers. Expansion into international markets seem favorable for the Walt Disney so it should search new markets and expand its business in foreign developed countries which will help the company to improve and increase the shareholders value. The company should price the products in a way that can cater the need of all the social classes in the product markets. In order to improve Walt Disney can also remove the Interactive Media Segment as this business unit is losing the money and has lower operating profit.
Question 7
SWOT Analysis:
Strengths
The strength of the Walt Disney includes:
- Walt Disney has strong diversification of the products.
- It has the strong brand recognition.
- Walt Disney has great abilities to responsiveness to the new and different markets.
- Each business unit of the company has creative process
Weakness
The weakness of the Walt Disney includes:
- High research and development cost.
- High sunk cost
- High risk factors
Constant up graduation.................................
This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.
Related Case Solutions & Analyses:
Managing Cash: What a Difference the Days Make
Eric Wood (A)
Philip Morris Companies Inc. (A)
Technology Plus, Inc. – Moving Onward
Dürr: Disintermediation in the German Mid-cap Corporate Bond Market
Hdfc Bank: Securing An Online Banking
Magic Timber and Steel: Investment Evaluation with Net Present Value
A Greek Tragedy With No Written Final Act
Inmet Mining Corporation: Corporate Bond Issuance
A Note on Valuation for Venture Capital
