strategic-management

10 MERNOUSH BANTON
EXHIBIT 11 Disney vs. the Industry: Comparative Data
Television, Cable Network Programming, Direct Broadcast Satellite Television, Magazines
and Inserts, Newspapers, Book Publishing, and Other. Due to recent corporate restructuring
for both CBS Corporation and News Corp., there are no industry data available for comparison
purposes. Next we discuss the competition for each segment of Walt Disney.
Competition: Media Networks/Broadcasting
The global media industry is a $1 trillion business that includes advertising, cable firms,
newspapers, radio, and television. This industry is dominated by conglomerates Walt
Disney, Time Warner, Inc., New York Times, News Corp., and CBS Corporation.
Typically, these companies prosper during election years due to heavy advertising revenue
invested by the politicians. Special events such as the Olympics also generate additional
advertising revenue for such companies.
Disney competes for viewers primarily with other television networks, independent
television stations, and other video media such as cable and satellite television programming
services, DVD, video games, and the Internet. Radio networks likewise compete
with other radio network stations and programming services. Disney also competes with
other advertising media such as newspapers, magazines, billboards, and the Internet.
Exhibit 12 reveals some major competitors to Disney in this segment of business, as
well as percentages that indicate attractiveness of that venue to consumers ages 18 to 24.
CBS Corp. is composed of five segments: Television, Radio, Outdoor, Interactive, and
Publishing. CBS Television is composed of CBS Network and its own television stations,
EXHIBIT 12 Disney Rival Firms in Media Networks/Broadcasting
Major Competitors % Attractiveness*
Discovery Networks 72%
Disney/ESPN Media Networks 68%
MTV Networks 52%
Turner Entertainment Networks 48%
Scripps Networks 43%
NBC Universal Cable 39%
Comcast Cable Networks 34%
Fox Cable Networks 31%
DIS CBS TWX Industry
Market Cap 39.00B 4.31B 26.28B 499.59M
# of Employees 150,000 25,920 87,000 7.51K
Qtrly Rev Growth -8.20% -6.20% -2.70% 5.10%
Revenue $ 36.99B 13.95B 46.98B 930.87M
Gross Margin 17.81% 37.99% 41.92% 41.92%
EBITDA $ 8.18B 2.69B 13.34B 166.44M
Oper Margins 17.81% 15.48% 18.62% 10.39%
Net Income $ 4.02B -11.67B -13.40B N/A
EPS $ 2.100 -17.428 -11.224 N/A
DIS = Walt Disney Company
CBS = CBS Corporation
TWX = Time Warner Inc.
Source: Based on finance.yahoo.com (April 2009).
*To consumers ages 18 to 24.
Source: Based on Multichannel News 28, no. 10 (2007): 30; ISSN: 0276-8593.