Time Warner Corporation
Disneyland Parks and Resort industry seems to be growing every year. The stock price of the company is increasing. The Net Income for the year decreases 25% because of the certain items that affected comparability including restructuring and impairment charges. Comparing the stock prices from its competitors like the Universal Parks, Six Flag Inc. and Time Warner Corporation, Disneyland still have the higher stock price. Parks and Resorts are expanding with the addition of attraction and features that bring together great creativity and fantastic new technology.
The profitability of the leisure time industry may be influenced by various factors that are not directly controllable such as economic conditions that includes travel industry trends, exchange rate fluctuations, weather patterns, economic conditions and oil and transportation II. Financial Ratio Analysis Financial Ratios for Disney Corporation and its competitive Time Warner Corporation is provided below. Disney Corporation is less liquid than its competitor because the earnings of the company decrease due to the competition. Time Warner Corporation has higher earnings and growth performance.
Globalization has help the company expands and become one of the largest entertainment companies. For the past years the company has experienced low rate in the stock market because of the global financial crisis that occur in 2008. IV. SWOT Analysis Strengths Disney Parks and Resort is one of the famous theme parks in the world. One of the strength of the company is the business customer relationship because of its reputation and its long term standing in the industry. The company offers quality services to make sure the customers are happy and satisfied.
Disneyland has grown substantially over recent years, and has experienced global expansion for example the branches that open in Hong Kong, Paris and much more. A focused strategy is in place for human resource management and development. People are key to Disneyland business and it invests time and money in training people, and retaining a developing them. Weaknesses One of the weaknesses of the company is the excessive research and development. This causes high expenditures and debt. Another is the constant up gradation of its utilities and technology. The company is also high risk in terms of investment.
Opportunities The major opportunity for the company, it is globally known around the world because of its brand name. The company can introduce their merchandise and products in the market. The company has a Disney Channel where they can advertise the business. Threats Being number one means that the company is the major target of competition, locally and globally. Being a global industry means that the company is exposed to political problems in the countries that the company operate in. As a famous theme park the company needs to have creative and innovative ideas in improving the services they offer.