1.1 Blog: Disney
When any business wants or even needs to make more money some critical thinking will most likely take place. In this case it is The Walt Disney Company. The use of critical thinking applies to this scenario because in the midst of a global pandemic, businesses have to think about different arguments and propose different explanations. For example what can one person do quarantined at home? Play cards? Exercise? In my personal experience I ate food, sat on the couch, and watched Netflix. Disney recognized that due to COVID-19 there will be PPE protocols and occupancy arguments to work around, so what was their solution? Diversify their platform.
Living in Orlando, Florida Disney was one of the last business to open back up, and even now aren’t fully open. Disney World reaches occupancy (on a good day) at 9am, and won’t allow anyone else into the park. We understand that this is for everyone’s safety, but regardless of safety businesses still need to make money. I’m assuming Disney isn’t the only big business that started to diversify, but the main reasoning to why can be simply put, the after-effects of COVID-19.
The steps I believed were taken (without oversimplifying the argument) can be measured in the rational-decision making model. Let us break it down.
Identify problems and goals: The problem is that people are staying at home and not going out to spend money, specifically at Disney World. The goal is to make more money by creating a direct-to-customer product.
Brainstorm possible solutions: What do people like about Disney? Their movies, brand, creating and being part of a childhood experience or memory. How can Disney take that and make money amongst a global pandemic?
Conduct business research: What are people spending their money on? What are they doing if they’re not going out? Conduct surveys, and do research determining what most people are doing at home.
Use research to decide a solution: Ok now we’ve figured out people are streaming on Netflix and Amazon Prime, these people have money but aren’t going out and spending it. So we have to figure out a way to get people to spend their money from home.
Implement a plan: Disney streaming service Disney+ with ESPN+
Evaluate plans success: Teamed with HULU, offers included with Verizon Wireless.
The role of logic that applies here is that if Disney wanted to make MORE money, the only way to do it successfully would be to do a related diversification. Keep what people love about Disney and create a direct-to-customer service. A streaming service, not even having to create a new product. Just putting all of Disney’s movies and shows that have already been paid for and produced into one platform, it’s genius. And yes it was successful, the success of The Mandalorian alone speaks for the Disney+ platform.