Question

answer the question based on Walt Disney Company during COVID-19.

Explain the effects of Government regulation on the business both before the COVID-19 crisis, and the impact of rapidly-changing regulations as the crisis has progressed.

Answer 1

During the COVID-19 one of the strongest containment measures taken up by almost all the countries is long duration lockdown ranging from weeks to months. Under this measure, all the places like a theme park, theater, and other places of social gathering have been closed until further notice. This has led to huge economic losses for the companies that are dependent on these business places. Walt Disney is one of the organizations which has been impacted so badly due to this unprecedented situation.

Before the Crisis of COVID-19: Even before the arrival of the COVID-19 crisis started to grow in any nation the first containment measure was to close parks and malls. This led to huge business losses due to closed theme parks and theaters. It impacted the production of the movie as there was a restriction on the social gathering of more number of people.

Second containment measure came as travel restriction and that impact the cruise liner business of Walt Disney and losses got further aggravated.

The situation as the COVID-19 progression is taking place: Now this situation has impacted in the long term as there is no clear visibility when the situation will improve and how long this situation is going to prevail. It has impacted the business so badly that the company has taken up stern measures like pay cut and furlough.  The company is considering closing all the financially risky pilots and focus on online streaming business as during the crisis phase there is a huge surge in subscription of the online streaming business.

The impact of COVID-19 situation seems to be having a long term impact on the health of the company and it will be really challenging for the management of the company to sail through these challenging times. Due to current situation company has already incurred huge financial losses which can not be compensated in near future. Company must think on to focus the alternative channels of intertainment which are agnostic to current challenges like on line streaming of contents.