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(-Fourth-Quarter-Full)WeaknessesCost of products and servicesA variety of uncontrollable events may reduce demand for products and services, impair theability 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 onthe general environment for travel and tourism. The environment for travel and tourism, as wellas 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 byvarious factors that are not directly controllable, such as economic conditions including businesscycle and exchange rate fluctuations, the political environment, travel industry trends, amount ofavailable 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 DisneyCompany. The higher sports programming costs as well as inflation and operations support costgrowth, 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 alot of customers because of its high prices. (Disney annual report)Seasonality of businessesThe seasonality of businesses is the weakness of Disney Company. Each of the businesses isnormally subject to seasonal variations. Revenues in the Media Networks segment are subject toseasonal advertising patterns and changes in viewership levels, Parks and Resorts segmentfluctuate with changes in theme park attendance and resort occupancy resulting from theseasonal nature of vacation travel and leisure activities, Studio Entertainment segment fluctuatedue to the timing and performance of releases in the theatrical, home entertainment, andtelevision markets. Not only this, but Consumer Products & Interactive Media segment are alsoinfluenced by seasonal consumer purchasing behavior, which generally results in higherrevenues during the Company’s first and fourth fiscal quarters, and by the timing andperformance 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 VolatilityAs an entertainment, travel, and consumer products company, Disney’s success depends onconsumer tastes and preferences, which are highly unpredictable. It is very difficult for acompany 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 consumermarket. In addition, more and more of Disney’s business is dependent on overseas markets,