Disney company reports

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( - Fourth-Quarter-Full ) Weaknesses Cost of products and services A variety of uncontrollable events may reduce demand for products and services, impair the ability to provide products and services or increase the cost of providing products and services. Demand for products and services, particularly theme parks and resorts, is highly dependent on the general environment for travel and tourism. The environment for travel and tourism, as well as demand for other entertainment products, can be significantly adversely affected in the U.S., globally or in specific regions as a result of a variety of factors beyond the control. Influenced by various factors that are not directly controllable, such as economic conditions including business cycle and exchange rate fluctuations, the political environment, travel industry trends, amount of available leisure time, oil and transportation prices, weather patterns and natural disasters. Increased competitive pressures will increase costs for Disney Company. Cost of services, products, and operations have grown at Disney and this creates financial pressure on the Disney Company. The higher sports programming costs as well as inflation and operations support cost growth, have led to higher costs and expenses. Apart from it, there are restructuring and
impairment costs. Its products and services are more expensive than its competitors’, it loses a lot of customers because of its high prices. (Disney annual report) Seasonality of businesses The seasonality of businesses is the weakness of Disney Company. Each of the businesses is normally subject to seasonal variations. Revenues in the Media Networks segment are subject to seasonal advertising patterns and changes in viewership levels, Parks and Resorts segment fluctuate with changes in theme park attendance and resort occupancy resulting from the seasonal nature of vacation travel and leisure activities, Studio Entertainment segment fluctuate due to the timing and performance of releases in the theatrical, home entertainment, and television markets. Not only this, but Consumer Products & Interactive Media segment are also influenced by seasonal consumer purchasing behavior, which generally results in higher revenues during the Company’s first and fourth fiscal quarters, and by the timing and performance of theatrical and game releases and cable programming broadcasts. In general, revenues are somewhat higher during the fall and somewhat lower during the summer months. (Disney Annual Report) Business Volatility As an entertainment, travel, and consumer products company, Disney’s success depends on consumer tastes and preferences, which are highly unpredictable. It is very difficult for a company in this space to consistently create films, cable programming, theme park attractions, and consumer products that will reliably meet the changing preferences of the broad consumer market. In addition, more and more of Disney’s business is dependent on overseas markets,

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