Arrr, 'tis clear as day, mateys! Lessons from Disney and Bud Light debacles be as plain as the nose on me face!
2023-09-14
Avast ye! Ye be thinkin' what those scurvy dog management teams at Disney and Bud Light were reckonin'!
In the language of a 17th-century pirate, we find ourselves in a situation where two major companies, Anheuser-Busch InBev (AB) and Disney, have suffered significant losses in their market cap due to controversial decisions. AB saw a 15% drop in its market cap despite efforts by billionaire Bill Gates' family foundation to support it. The company faced backlash after entering into a partnership with transgender activist Dylan Mulvaney, which resulted in a public relations disaster. Similarly, Disney's market cap dropped about 40% since March 2022, when the company went public with its opposition to a Florida parental rights bill. Disney also faced criticism for its intent to include woke sexual ideology in its content for children. Both companies prioritized politics over profits and faced costly consequences.The management team at Disney seemed to have disregarded the trust parents had in the brand, which was built over decades. Disney's CEO opposed a parental rights bill and announced plans to include woke sexual ideology in children's programming, which offended a significant portion of their target market. This decision led to a decline in theme park visitors, underperforming movies, and a loss of subscribers to their streaming platform. Disney's market cap dropped from $250 billion to $150 billion.
AB's decision to support a transgender activist also backfired. Bud Light sales saw a 14.5% decline, while other beer brands experienced growth. AB failed to understand their core customer and suffered a 15% decline in market cap.
The lesson here is clear: when companies prioritize woke ideology over their target market, they risk financial losses. The slogan "go woke, go broke" holds true. It's important for companies to understand their customers and prioritize profits over politics to maintain their success.