Growth Analysis

 Growth Analysis

    As the coronavirus pandemic continues, the decisions on how to handle operations within 
the Walt Disney Company is crucial. The governor of Florida has opened all restrictions and the 
company must figure out if opening up the theme parks to full capacity is the correct decision in 
these thought-provoking times. Currently the theme parks are running at a 25% capacity with 
certain attractions still not reopened. These decisions have been made for the safety and security of the guests and cast members. As the state reopens and the consumer has increased pandemic fatigue, some decisions have to be made:

• Reopen the parks at a higher (50% or more) capacity.

• Bring back all entertainment (including stage shows, fireworks, parades) to the theme parks and give guests more offerings. 

• Open back up all restaurants and give guests more offerings.

• Reinstate the fast pass options for the rides and attractions.

• Reopen the parks to normal and stop using the reservation system to visit the theme parks.

    In the chart below, the projected increase in revenue is much higher should the parks reopen at a 50% or 100% capacity. Although the revenue per million could be higher, the consequences could be significant. With the parks at a higher capacity, the risk of infection to the guests of the coronavirus is much higher. With the possibility of spreading the virus to the guests, the trust and brand reputation could have negative long-term consequences. 

    These decisions are crucial to the success of The Walt Disney company as it could lose trust in the brand. As the pandemic continues, the company needs to make decisions based on consumer trust as well as the health and safety of the consumer and employees. As much as opening up the parks to a higher capacity could temporarily bring back the guests and increase revenue, this could potentially be a huge backlash should the data show the coronavirus being spread from the theme parks.