Challenges of Disney Corporation - Essay Example

One of the weaknesses of the company is its high fixed cost. The firm has costs and expenses that accumulate to $33.11 billion annually. A second weakness of the company is its high amount of total debt. The firm total debt in 2011 was $32.67 billion. The third weakness of Disney is that it paid cero dividends during the fiscal year 2011.

Disney Corporation has many opportunities that it can take advantage of to increase its market share. One of the biggest opportunities for the company is to expand its movie production. In 2011 the global box office revenues worldwide reached $32.6 billion (Mpaa, 2011). A second opportunity for the company is to use its copyrighted characters such as Mickey Mouse to produce new video games sponsored by Disney. The video game industry generated $17.02 billion in the U.S. and $63 billion worldwide in 2011 (Plunkett Research, 2012). A third opportunity for the firm is to increase its sales of apparel items featuring its characters.

In 2009 Disney acquired Marvel Entertainment and its 4,000 characters (Barnes, 2009). Disney also faces different threats that the company must acknowledge. First of all, a decline in the economic environment in the US and abroad is hurting the ability of the company to achieve revenue growth because entertainment is a luxury item. In Europe, the economy in the region contracted by 0.2% in 2012 (Boesler, 2012). This will hurt the revenues the company will generate from its Euro Disney operation. A second threat is that the company faces changes in technology and consumer consumption patterns (Thewaltdisneycompany, 2011). A third threat the company faces is keeping up with the human resource challenges of having 156,000 employees. Read More