It would be fair to say that Walt Disney is the Coca-Cola of the entertainment industry. Their brand saturation is incredible and encompasses nearly every component of entertainment that people experience today. Places like Disney World capture the imagination of children. The ownership of ABC puts Walt Disney into homes every day. Cable channels put Disney program on daily for children. Movies bring in billions in revenues. Even ESPN provides live sports and falls under the Walt Disney umbrella.
What is the Walt Disney business model? It’s called the Loyalty Profit Chain. Here’s how it works: Disney provides a customer with an outstanding experience. It’s so good that the customer wants to have that experience a second time, a third time, and so on. Each additional experience encourages word-of-mouth marketing to draw in even more customers. This allows Disney to dominate in its industry.
What are the secrets of the Walt Disney business model? They’re actually so surprisingly simple that anyone can implement them.
1. Open Communication.
Above anything else, Walt Disney incorporates an environment that demands open communication. People need to talk to other people with transparency for the business model to succeed. Standards are set very high and employees are required to meet those standards every day so that customers receive the best experience possible with the brand.
2. There’s Never a Bad Idea.
You won’t find an executive team shooting down ideas at Walt Disney and labeling them as the worst thing they’ve ever heard. There isn’t a bad idea at Disney. There are just ideas that are implemented and ones that aren’t implemented. Employees are encouraged to share any idea they may have that might benefit the organization. If they are implemented, then the employee gets rewarded in some way. This environment gives people the courage to speak up and lead, even if they’ve never been a leader before.
3. They Put Even More Focus on the “Wants.”
To maintain a business, a company must be able to fulfill a customer’s needs better than any other business within their industry. To grow a business, however, a company must be able to also meet the “wants” a customer has better than anyone else. This is where the Walt Disney business model truly differentiates itself. By giving customers what they want and making those wants affordable, they drive up customer demand.
4. Everything Gets Tested as Often as Possible.
Many organizations will test products, services, or even employee talents, but how many times has the brand itself been tested? Disney is constantly testing its brand to see if they can push it to even higher heights. At times they’ll risk their organizational identity just to see if they can obtain a better market share. The Walt Disney business model will always have an influence on kids, but to reach adults something different had to be done. That’s why this company has so many different entertainment options available today.
5. Everyone Plays an Important Role in the Business Model.
On any given day, Walt Disney has more than 150,000 people employed. This large scale means that there needs to be refined hiring practices in place, but each person must also be able to maintain an identity. That’s why in the Walt Disney business model, every employee plays an important role. Whether it is in front of the camera, behind the camera, as an artist, or as a data input specialist, each person contributes something to the dynamic.
6. Company Culture is a Top Priority.
The formula for success at Disney starts even before an employee is hired. Managers and hiring professionals are mandated to discuss the culture requirements that are in place at the company during the application process. If potential employees seem uncomfortable with the idea of being part it, then they are generally not brought into the Disney family. There is one body for the company with many different parts, but they are equal parts. That equality is what drives profitability.
Just providing some customers with the best experiences of their lives isn’t good enough. Everyone who encounters the Disney brand is supposed to have a positive experience. If a customer has a negative experience, then the Walt Disney business model demands that this experience be corrected in some way. You can’t please all of the people all of the time, but Disney does its very best to do so every day.
The secrets of success in the Walt Disney business model are straightforward, simple, and easy to implement. Every business should have these core elements in place in some way. When the customer comes first, anything is possible.