Question

Disney faces an unknown future as coronavirus hobbles its media empire
Crowded theme parks. Theaters packed with boisterous Marvel and Star Wars fans. Bustling
hotels, cruise ships and retail stores. No media company seems more vulnerable to social
distancing than Disney.
Over the last century, Disney (DIS) has built a sprawling empire centered around entertaining
large crowds in dense spaces. But following one of its best years ever in 2019 — including the
record-breaking release of "Avengers: Endgame" and the launch of new Star Wars lands at its
theme parks — the pandemic brought Disney to a halt in a matter of days.
CEO Bob Chapek is during dealing with the health and economic crisis. Yet as they deal with the
immediate blow to earnings,— which have become sudden liabilities because of the virus —
could offer a light at the end of the tunnel.
'It has gone from great to good to bad to worse'
"What everyone's worrying about is that we don't know when things are going to get back to
normal. We also don't know whether behaviors change in the future," Michael Nathanson, a
media analyst, told CNN. "Will people be reluctant to go to parks? Will people want to sit in the
theater next to strangers for fear of catching the virus? That's what the market is wrestling with
when it comes to Disney."
Disney furloughs employees 'whose jobs aren't necessary at this time'
The pandemic has hit Disney particularly hard. Its parks and resorts have closed around the
world, major films like "Mulan" and "Black Widow" are delayed.
This has led Disney to furlough thousands of employees and led its stock to drop 27% year to
date. Disney did not have a comment on this story.
"With the businesses unable to operate, Disney is just going to get decimated in 2020 on free
cash flow and profitability," Nathanson added. "It has gone from great to good to bad to worse."
However, Disney is still Disney — a company with a beloved brand and an array of franchises
that remain the envy of the industry. As consumers grapple with the psychological effects of
being locked up for so long, will there be pent-up demand in the long-term for Disney's crowd-
based entertainment experiences?
Or will consumer habits shift for good?
'No one is suddenly bored of Disney'
"The ability for Disney to thrive in so many applications — TV, comics, film, parks, books, on-
ice shows, video games — is encouraging," Matthew Ball, a former Amazon (AMZN) Studios
executive, told CNN Business. "Most companies don't have the intellectual property, let alone
the culture or skill set, that Disney does when it comes to finding out how to delight customers in
new ways and through new products in a post-COVID world."
Ball added that "no one is suddenly bored of Disney" and that before coronavirus, "no media
company was more beloved."
Suzanne Scott, an assistant professor at the University of Texas, telling CNN Business that
Disney fans are "incredibly loyal to the brand." She doesn't believe that this crisis will change
that.
"We associate Disney with family, which is at the forefront of everyone's mind right now," she
said. Scott emphasized that people will be craving events and communal experiences once it is
safe to collectively gather again."
Robert Niles, editor of ThemeParkInsider.com, believes that Disney's parks and resorts will face
the greatest challenges in terms of reopening, and that those challenges probably won't be
resolved any time soon. However, he added that Disney has spent years and billions to position
itself as "a lifestyle brand — not just an entertainment company or a vacation destination."
That bond with consumers gives Disney "an enormous head start relative to its competition when
stay-at-home orders lift," he said.

3. Based on the case, where does Disney stand on the Product Life Cycle?
What options does the company have in this stage to survive?
4. If you were the marketing director of Disney, how will you promote the Disney
Application during corona virus pandemic? Describe three strategies.

Answer 1

The novel corona viruus pandemic has brought an extraordinary reversal of fortunes. Since late february Disneys stock tumbled nearly 30%. The moves follow the companys dramatic announncement that it would temporarily close its theme parks in thhe US and Europe, the companys like Disney will surely can perorm after covid impact era productively and survive with good plannings and stretergies.

• Ensures actions speak louder than words - put health related precautions
• Show less is more- certify with CDC the park is safe for public
• Rely on contactless communications- in the new era socilal distancing get mobile technology on your side
• Change strategy