Disney 2016 – 2020 Reformulation Task Harvard Case Solution & Analysis

Disney 2016 - 2020 Reformulation Task Case Study Solution 

The overall ratio analysis concludes that the company’s operating efficiency, liquidity, profitability and solvency position have declined after Covid-19. The declining ratios do not mean that the company is unable to sustain its competitive advantage. Rather, the worldwide crisis caused by the pandemic, have hurt the overall global businesses, not just the Disney. The pandemic effect would be temporary and Disney is the industry’s giant, whose competitive advantage is rare, inimitable and valuable with high level of investments. The company’s competitive advantage is not under threat as the company enjoys a major position in the market and its customers are very loyal. The performance is declining due to the crisis, which will soon be recovered as soon as the pandemic ends.

Question 5

Walt Disney’s business was hurt by the global pandemic of Corona Virus, which caused its theme park, cruise lines and movies’ screening in theaters to come to a standstill. But despite such hard conditions; it is still expected that the company would emerge from the pandemic. Disney owns its content, which is actually timeless and people would be paying for such content, no matter what medium is used for delivering its content. In upcoming future, people would be coming in person to see the Disney’s theme parks.

Moreover, the company enjoys its pricing power among the customers and it its currently testing it pricing power through Disney+. Streaming is considered to be the future of the business, which it has started focusing on through the development of the Disney Plus. Disney has the ability to put up large investment in major acquisitions, which gives it a competitive advantage against its competitor’s. The Disney’s business is diversified and it has an ability to revive its performance back, a sit can achieve the five years’ targets within nine months.

The virus is a global crisis, which could be wiped away with the development of vaccination programs, ultimately recovering the entire world’s economies. The end of pandemic would be positive for the company, as post-Covid19; the company would be able to introduce additional products by catering to a different audience segments. Through its competitive advantage and strategic moves; Disney can revive its operational efficiency and financial performance, i.e. the company would be able to generate the target profit levels and it would be able to revive its RNOA......................

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