Page 417 -

CASE 1 • WALT DISNEY COMPANY — 2009 13

investment is required in such product/service offerings in order to earn consumer
acceptance and attention.
3. Changes in technology and in consumer consumption.
4. Technologies such as peer-to-peer, high-speed digital transmission, illegal digital
video recorders, and so on are vulnerable to piracy. Disney must devote substantial
resources to protect its intellectual property.
5. Changes in travel and tourism could impact the company’s business, such as adverse
weather conditions, natural disasters, terrorist attacks, health concerns, international
concerns, political or military developments, and war.
6. High unemployment rates.

Source: The Walt Disney Company, Form 10K (2008).

Conclusion
Walt Disney’s net income fell 26 percent for the third quarter (2009) with no division or
segment of the company reporting an increase. The worst performing division for the quar-
ter was Movie Studio, which reported an operating loss of $12 million on a revenue drop
of 12 percent. Disney’s DVD sales slowed dramatically.
As the economic recession lingers and consumers still spend money on what the
need rather than what they want, Disney needs a clear strategic plan for the future.
Shareholders do not want to see a repeat of the firm’s third-quarter type results. Let’s say
Disney asks your assistance in developing a strategic plan. Help Disney reverse its slipping
revenues.
References
Datamonitor Industry Market Research
finance.yahoo.com
Investor’s Business Daily
Multichannel News, available from www.multichannel.com
News Corporation, available from www.newscorp.com
The Wall Street Journal, available from www.wsj.com
The Walt Disney Company, available from www.disney.com
TheStreet.com, available from www.thestreet.com
Time Warner, Inc., available from www.timewarner.com
Standard & Poor’s, available from www.standardandpoors.com
USAToday.com, available from www.usatoday.com