The  Importance  of  Business  Models:  

A  Closer  look  at  Disneyland                            
Written  by:     Course:     Block:     Lecturers:      

Rik  Spitters   International  Master  in  Media  Innovation   BM-­‐01   Hans  de  Nie,   John  van  den  Elst  



 This  opening  for  special  guest  went  far  from  smoothly.  Disneyland  is  dedicated  to  the  ideals.  and  fantasy.  However  to  understand  why  Disneyland   Paris’  business  model  failed  in  so  many  ways  we  will  explain  the  origins  of  the  park.  This  sentence   came  from  one  man.  or  as  it  is  called  nowadays:  Disneyland  Paris.  Mickey.  with  the  first  two  parks  in  Anaheim  and  Florida.  With  this  essay  I  want  to  go  deeper   into  the  business  model  of  Disneyland  Paris  and  why  it  has  failed  in  so  many  ways  back  in   1992  when  the  park  opened.  It  was  only  then  that  Walt  connected  the   dots.  Before  Disneyland.  After  seeing  his  two  daughters  riding  the   Merry-­‐Go-­‐Round  in  a  park  called  Griffith  Park  he  stumbled  upon  the  idea  to  create  a  place   where  children  and  their  parents  could  have  fun  together.  However  that  didn’t  stop  the  crowd  to  go  to  Disneyland  the  next     2   .  At  the  same  time  he  noticed  the   fans  growing  interest  to  visit  the  Disney  Studio’s.  and  the  hard  facts  that  have  created  America.  Here  age  relives  fond  memories  of  the   past.  Disney.  Before  Disneyland  Walt  successfully  created  an  empire   that  all  started  with  a  cartoon  mouse  called.  origins   that  lay  in  America.  every   amusement  park  in  America  was  only  focused  on  children.     When  the  plans  finally  came  into  realization  it  took  the  Americans  only  one  year  to  build   Disneyland  from  the  ground  up.  Bad  press   releases  were  the  result.  tomorrow.  Walt  Disney.”   Walter  E.  with  the  hope  that  it  will  be  a  source  of  joy  and  inspiration   to  all  the  world.     “To  all  who  come  to  this  happy  place:  Welcome.  One  of  these  examples  of  bad  implementations  Magretta  gave  was   EuroDisney.  Disneyland  is  your  land.  The  first  park  opened  its  doors  on  July  the  17th  1955  via  a   life  television  broadcast.Introduction   This  essay  is  based  upon  the  article  “Why  Business  Models  Matter”  written  by  Magretta   (2002).  She  gives  examples   of  businesses  that  applied  business  models  in  a  good  way  and  examples  of  bad   implementations.  17  July  1955     One  Man’s  Dream   “Here  you  leave  today  and  enter  the  world  of  yesterday.  the   dreams.   therefore  this  article  will  mainly  refer  to  her  article.  the  people  are  in  need  of  a  park  that  recreates  the  magic  of  film  in  real  life.”  These  are   the  famous  words  that  can  be  read  at  every  entrance  of  a  Disneyland  Park.  In  this  article  Magretta  explains  why  business  models  still  matter.  She  does  this  by   first  give  the  reader  a  closer  look  of  how  the  origins  of  business  models.  I  will  follow  the  same  structure  as  Magretta  did  in  her  article.  and  here  youth  may  savor  the  challenge  and  promise  of  the  future.  However  after  dozens  of  animated  and   live  action  movies  Walt  wanted  something  else.

000  people  attended  the   opening.000  cars  were   expected.  welcome.  So  when  the  idea  came  to   mind  to  go  abroad  with  Disneyland  the  executives  were  confident  that  nothing  had  to   change.”   Michael  D.  on  openings  day.  Approximately  50.  and  the  young  at  heart.  inspired  by   Europe’s  best  loved  tales.  Some  say   it  was  because  of  the  broadcasts  for  people  not  to  come  and  some  say  it  was  because     3   .  with  a  hope  that  it  will  be  a   source  of  joy  and  inspiration  for  all  the  world.  was  it  because  of  the  strike  that  the  RER  Railway  was  dealing  with   or  was  there  another  reason  people  didn’t  visit  the  parks  openings  day?     There  is  much  speculation  about  why  the  openings  day  of  Euro  Disneyland  failed.000  cars   arrived.  Once  upon  a  time.     “To  all  who  come  to  this  happy  place.  Both  resorts  were  quite  similar.  When  the  park  opened  for  the  public.  12  April  1992     Euro  Disaster   Openings  day  arrived  for  Euro  Disneyland  on  March  12th  in  1992.  and  called  it  Disneyland.  Great  traffic  jams  were   foreseen  and  everyone  was  warned  that  it  could  be  overcrowded.  Euro  Disneyland  is  dedicated  to  the  young.  Now  his  dream  returns  to  the  lands  that   inspired  it.  next  to  Paris  a  land  was  bought  up.  because  as   with  the  first  park  Disneyland  Florida  was  a  great  success  as  well..  Both  areas  in  Florida  and  California   transformed  in  resorts  so  that  guest  could  stay  longer.  Eisner.  it  was  nearly  as  crowed  as  expected.  Therefore  the  Disney  executives  were  even  more   confident  that  a  European  park  would  be  successful.  Walt  Disney.  A  government  survey  indicated  that  a  half  million  people  would  visit  the  park.  During  the  eighties  they  looked  for  a   central  area  in  Europe.     Within  a  few  years  a  second  park  opened  in  Florida.   without  changing  the  business  model...   Marne-­‐La-­‐Valleé.  He  envisioned  a  Magic   Kingdom  where  these  stories  would  come  to  life.  the  model  worked.  by  midday  half  of  the  parking  lot  was  full.  A  master  storyteller.  After  a  few  years  it  was  decided.  However  it  was  Asia  that   was  the  second  continent  with  its  own  Disneyland.   However.  Confident  that  this  park  would  be  a  gigantic  success..  Tokyo  Disneyland  proved  to  be  a  success.  Their  first  continent  to  they  set  their  eyes  on  was  Europe.  Around  90.  and  from  that  point  on  the  park  kept  growing  and  growing.  Was  it  because  people  were  advised  not  to   come  to  the  park  by  car.  Euro  Disney  SCA.  started  building  Euro  Disneyland  based  on  the  three  other   successful  parks.  In   their  business  model  nothing  used  his  own  special  gifts  to  share  them  with  the  world.  the   company  that  owns  the  park.  And  why  should  they.  Only  25.

 And  finally  in  1995  the  park  got   its  first  quarterly  profit.  Visitors  stayed  away  from  the   park.  and  only  eat  at  set  times.  So  that  couldn’t  be  the  problem.  However  all  of  this  this  came   with  the  cost  that  the  actually  planned  second  park  was  delayed  from  1996  until  2002  and   that  the  park  is  still  in  great  depth.  because  we  Europeans  knew  how   real  castles  looked  like  so  the  castle  needed  to  have  higher  standards.  In  the  beginning   Euro  Disneyland  had  the  policy  that  guests  couldn’t  bring  their  own  food  with  them.   Because  of  financial  investors  the  park  the  park  could  go  on.  and  merchandise  was  and  is   very  popular.  Europeans  spend  a  lot  less  money  on  food  then  Americans  do.  The  latter  reason  seems  a  reasonable  one  since  the   days  that  followed  the  park  didn’t  meet  the  expectations.  not  exactly.  and  the  firs  tin  Europe.  A     4   .   What  was  the  reason  the  park  failed  to  attract  us  Europeans?  It  couldn’t  be  the  central   placing  of  the  park.  So  perhaps  was  it  the  themes  that  the  park  had  not  attractive  to  Europeans?   Well  Disney  actually  changed  a  lot  of  names.  It  even  grew  to  become  the   fourth  best-­‐visited  park  in  the  world.  and  the  ones  that  came  to  the  park  were  spending  less  little  then  expected.  This  didn’t   changed  for  the  next  coming  years.  For  example  when   Americans  visit  a  park  they  almost  spend  as  much  time  in  the  restaurants  as  in  the   attractions.  The  attendance  grew  from  over  8  million  to  over  10  million  in  one   year  and  in  the  next  coming  years  the  park  got  a  bit  healthier.  All  of  that  was  deeply   researched  and  couldn’t  be  the  reason.  whereas  Europeans  bring  their  own  lunch  with  them.   Next  to  that.  and  Euro  Disneyland  was  upon  the  brink  to  go  bankrupt.  The  Disney  movies  did  a  good  job  at  the  box  offices.  The  central  castle  changed.  Is  it  that  the  characters  of  Disney  aren’t   that  popular?  Well.  Donald  Duck  is  by  far  the  most  popular  comic  character  in   Europe.  But  what  was  the  reason  Europeans  did  not  visit  the  park   and  meet  up  to  the  expectations  of  Disney?     This  is  Europe.  Some  attractions  got   a  Jules  Verne  theme  because  that  guy  was  popular  in  France.people  weren’t  eager  to  visit  the  park.  So  what  was  the  reason  that  made  Euro  Disneyland   so  unpopular?     The  unpopularity  of  Euro  Disneyland  came  mostly  from  the  fact  that  we  weren’t  Americans.  like  Tomorrowland  became  Discoveryland  to   meet  a  more  European  twist.  not  America!   After  three  years  the  smoke  finally  cleared  from  the  disastrous  opening  of  Euro  Disneyland.   The  way  Americans  visit  a  park  is  a  lot  different  then  Europeans  do.  The  park  is  strategically  placed  next  to  Paris  so  it  reaches  68  million   people  that  are  a  4-­‐hour  drive  away  from  the  park  and  another  300  million  people  that  are  a   2-­‐hour  flight  away.

 this  because  of  the   opening  of  the  second  park  “Walt  Disney  Studios  Park”.  something  Europeans  weren’t  used  to.  and   commerce.  even  if  it  is  in  the  same  company.000.  But  little  did  they   know  that  European  people  are  used  and  lived  to  different  standards.  not  only  for  the  company  and  how  to  set   it  up.  former  CEO  of  The  Disney   Company  stated.     Conclusion   It  was  only  after  the  executives  of  Disney  realized  that  they  had  to  change  their  business   model  in  order  to  turn  the  park  profitable.”  Therefore  in  1995  Disney  decided  to  change  the  name  of  Euro  Disneyland  into   Disneyland  Paris.  In  2002  the  name  changed  again  into  Disneyland  Park.         5   .  Also  food  prices  were  too  high  and  no  alcohol   was  served  inside  the  park.  And  because  of  that   the  park  failed  in  the  beginning  years.  they  think  twice  before  opening  a  new  park.  And  therefore  Disneyland  Paris  is  a  very  good   example  of  why  business  models  matter  and  why  they  always  have  to  be  looked  over  and   over  again.  These  “American”  rules   partly  led  to  an  average  attendance  of  25.widespread  rule  that  people  till  this  day  still  believe  is  active.  This  rule  changed  after  1995.   and  will  forever  take  a  very  close  look  on  their  business  model  and  what  customers  are  that   they  are  dealing  with.  Business  models   makes  people  aware  of  what  things  are  important.  Michael  Eisner.  but  more  importantly  of  your  customer.  “In  America  the  word  “Euro”  is  believed  to  mean  glamorous  or  exciting.  Disney  learned  this  the  very  hard  way.  They   just  copied  their  business  model  from  America  and  placed  it  in  Europe.  It  is  very  clear  from  this  story  that  you  cannot  simply  copy  another  business   model  and  place  it  in  another  company.  And   you  bet  that  they  won’t  let  that  happen  again.  The  overall  resort  is  now  called   Disneyland  Paris.     So  the  biggest  flaw  of  Disney  was  that  they  didn’t  understood  their  target  audience.  currency.000  instead  of  the  predicted  60.     Another  reason  was  the  name  of  Euro  Disneyland.   own  brought  food  is  allowed  in  the  parks  now.  For   Europeans  it  turned  out  to  be  a  term  they  associated  with  business.

 J.New  York  Times.  April).  504).  Retrieved  from   http://info.  Harvard  business  review.  Will  the  French  Resist?  Time   Magazine.  R.psu.  C.975357-­‐3.pdf         6   .00.  Retrieved  from   http://www.nytimes.   Magretta..  Why  Business  Models  Matter.References   Corliss.  (2011).com/1993/06/12/business/euro-­‐disney-­‐adding-­‐  (1993).  Voila!  Disney  Invades  Europe.  (2002).html  Retrieved  from   http://www.  p.  The  Art  of  Walt  Disney  (third.html   Euro  Disney  Adding  Alcohol.  (1992.

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