The mistake that cost Disney’s Bob Chapek his CEO job

Bob Chapek‘s biggest blunder in his brief tenure as Walt Disney Co. chief executive was a mistake made in numerous executive suites in the past year.

Forget all the chatter about his managerial style. Tough calls, right or wrong, are why CEOs get the big bucks. And if the bottom line and stock price trend up, many executive sins are forgivable.

What Chapek misread – and he’s by no means alone – is that the pandemic is over to the American consumer. And this change of heart, perhaps not totally medically endorsed, called for fresh corporate thinking.

Disney under Chapek seemed oblivious to the public’s “I’m going back outdoors” mindset even as profits withered and its Wall Street value tumbled by $116 billion.

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These sorts of gaffes are not just Disney. Similar missteps have haunted a broad collection of companies that failed to see the public’s desire for “normal.”

These are costly slip-ups. E-commerce giant Amazon’s Wall Street value is off more than $900 billion from its high. Facebook’s owner, Meta, is down $640 billion. And 19 big homebuilders and apartment owners have lost a combined $100 billion in value. Even in a horrible year for stocks, those are stunning drops.

You see, the pandemic was largely an economic oddity. For consumers, the “new normal” is actually wanting a life much like the one before we spent two years learning about infectious diseases.

Disney downer

Chapek made a big bet on streaming services while Americans were no longer stuck in their homes, desperate to be entertained on a phone, tablet, or big-screen TV.

Disney hugely overspent in the content wars with big-name streaming providers. This ignored 2022’s return-to-normal mentality.

Streaming services aren’t disappearing, but the medium-term prospects for grabbing eyeballs will have no winners in this expensive media game.

Chapek planned to lose billions in profits to boost the Disney+ streaming …read more

Source:: Los Angeles Daily News

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