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MANAGING ACROSS VARIOUSBUSINESS

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COMPONENTS OF DISNEYLAND BUSINESS MODEL

Customer segment:

Disneylands target is the mass market. It aims primarily family with young children

from 3 to 15 years but also old children who want to remind childhood memories. Italso aims groups, work council and tour operators.

Value proposition:

Disney delivers dream with its theme park. This is the place where the dreams come

true. It offers entertainment and amusement and gives the opportunity to parents to

spend some time with their children in a magic place. Celebrating special events is one

of the greatest ways that they have to bond you with the park. The more specialoccasions whether birthdays, anniversaries etc. that you celebrate at the park the more

you will wish to return to relive those memories. Cast members are friendly and

accommodating, always willing to help. The atmosphere is almost palpable. Everything

they do is to make your experience memorable and to make you feel like you are

connected with and to the park. Everything in the parks is designed to make you happy

and to feel good about being there. They want you to leave happy, with warm memories,

and already planning your next visit

Channels:

Customers can purchase tickets in different areas. The easiest way to buy tickets is on

the web Customers could also buy tickets trough tourist agency.

Concerning Disney products, there are several shops in parks which all sell a huge range

of products such as toys, costumes etc.

Customer Relationship:

Everything Disney does is tailored to the visitors needs. The corporations success, andthe success of their theme parks, is strongly attributed to their ability to continually

meet and exceed visitors expectations. Customer satisfaction is a number one concern,as the goal of repeat business and extended patronage is clearly evident in all

operations. A notable attention to details and a constant investment in anything that

affects the guests experience puts Disney apart from their competitors.

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Revenue stream:

Fix prices:

The entrance fees of disney parks have continually risen since 2004. They increased by

5 in 2011. Disney Land Paris chose high prices despite promotional offers. Sale ofderivative products allows the company to make an important profit, the prices are high,

and company enjoys the reputation of its cartoons.

Entrance fees of Euro-Disney parks:

Key resources:

Concerning human resources, the group workforce now stands at almost 13000

persons. The average age is 39 and seniority is around 9 years. Disneyland is very

concerned about diversity in building a workforce that blends people from all ages,

experiences, backgrounds, ethnic groups and lifestyles.

Key activities:Number one tourist destination in Europe, the revenue generated by theme park

increased by 5,7 % in 2011 and turnover amounted to 724,3 million Euros. Revenue

generated by hotel activity increased by 6,9 % in 2011 and reach 513,2 millions Euros.

The other activities of the group are Restaurants, Shops and Coffees.

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Key partnership:

Walt Disney Company is the largest shareholder with 39.8%, Saudi Prince Al-Waleed

possesses 10% and 50% to an association of private and institutional investors.

Partnerships with hotel groups are important because they allow parks to expand theirofferings to provide a quality service. Euro Disney has created a partnership with Pierre

& Vacances Center Parcs to build a "Village Nature", this project is proposed to create a

tourist destination has an independent park theme.

Euro Disney is a partner of international groups located in different areas, food with

Coca-Cola, Danone, Segafredo, Unilever, and Nestl Waters. These companies provide

services in the park. There are also banks such as Crdit Mutuel and Mastercard, so

visitors of the park can manage their money during their stay in the park. There are also

Hertz, Kodak, Opel, Orange, Osram, which offer various services in connection with their

activities. Disneyland saves money by purchasing with the Flo group through a joint

venture for food.

Cost structure:

Task which deliver/no deliver value:

Disneyland Paris generates excessive fixed costs, royalties and repayment of debt. These

debts lower the profitability of the company. In 2011, Disneyland Paris, will have spent

560 million in wages, 170 in amortization of assets. Add to that 9-10% of turnover

reinvested each year in marketing, 90 million "investment assets" dedicated to the

maintenance and development of new attractions, and the various costs. Financialdecisions are made in the USA, and we know that the centralization is expensive. The

company must pay royalties to the parent company in exchange for its license

agreement, the amount of royalties change every year, between 4.6 and 4.8% of

turnover.

The activity of the operator of hotels and its themes parks Disneyland Paris and Walt

Disney Studios, has increased of 6.9% and 5.7%. The increase in turnover of the group

was slowed by a fall of more than 60% of its revenue from Estate activities. Tourist

activities represent 98.3% of turnover, the heart of Euro Disney profession, and the

Property development activities represent 1.7% of turnover.

Tariff increases decided by the parks (5 increase for adult entry ticket for a day in EuroDisney parks in 2011) and higher revenues generated by the activities related (hotels,

restaurants, shops) are the two major factors is the growth of the company. Revenues

earned by the group's hotels and the Disney Village shopping area grew by 6.9% in 2011.

(Data from Euro Disney study Xerfi 700 December 2011)