1. Disney 2007
SWOT

2. SWOT (2007) Strengths: Weaknesses:
Strong brand recognition, recall, and equity
Good cash reserves ($3,670,000,000)
Strong revenues (5.2% over previous year)
Strong profits (net income up 38% over previous year)
Talented employee base
Relationships with major corporations
Culture of innovation and accountability
Financial analysis generally strong compared to industry
Weaknesses:
Though company overall is profitable and in a strong financial position, two SBUs (Studio Entertainment and Consumer Products) have experienced declining revenues
P/E ratio is below industry average (15.94; industry is at 19.54)
The sheer size, complexity, and diversificaiton of the Disney company is a weakness as it can make it slow to respond to market opportunities and threats and difficult to coordinate
Parks & Resorts are financially strong but some properties within the SBU a weak (such as Disney California Adventure and Hong Kong)
Copyright 2005 Prentice Hall

3. SWOT (Part 2) Opportunities: Threats:
World-wide growth in Internet as a source of entertainment
Growth in entertainment market including video on demand and gaming
Growth in opportunities for reaching young consumers (virtual worlds in addition to traditional products targeting youth market)
New methods for content delivery (e.g., via mobile products)
Opportunities in international markets
Acquisitions enable market entry into related areas (like the recent acquisitions of Pixar and Club Penguin)
Potential to enter unrelated markets
Threats:
Risk of copyright infringements and unauthorized sharing of entertainment content
Weak economy lessons income available for entertainment expenses
Numerous, powerful competitors in all areas in which Disney competes
Consumer preferences for on demand entertainment
Increasing costs to produce content results in higher prices for consumers
Other delivery methods (online, on demand, and iPods) increase competitive pressure and decrease demand for Disney offerings
Demand for low-cost entertainment options
Copyright 2005 Prentice Hall