Disney’s recent decision to restrict products advertised on its child-focused media properties might not appear to be business model innovation in the classic sense. But it is. With that one decision, Disney is redefining how, where, and why they will do business with other companies, and offering a leading-edge value promise to consumers. In reading societal tea leaves correctly and taking bold action, Disney will advance its financial and social value. Starting in 2015 Disney will restrict advertising on its child-focused TV channels, website and other media properties to brands that meet a strict new set of federal nutritional standards. The decision will reduce Disney advertising revenue from brands like Capri Sun™ drinks and Kraft Lunchables™, foods that may be fun to eat but not good nutrition. Concurrently, Disney will reduce the salt content of meals served at its theme parks and engage…
More is less in McDonalds’ business model innovation
Burger King has struggled for years to capture market share from McDonalds. Let me propose a winning new business model for Burger King. While driving to Door County, Wisconsin for a short holiday, Nick and I stopped at a McDonalds to quench our thirst. I love McDonalds iced tea as the chain provides real lemons and the drink is always cold. Or so it used to be. Unfortunately, McDonalds replaced my usual 12-ounce plastic cup with a behemoth disposable cup containing more iced tea than I can drink in a day. The first sip confirmed my worst fears – there was so much iced tea in the container that I tasted no lemon, and the drink was on the warm side. In this case, more product provided less consumer value. Far more important, the “32-ounce drinks for $1” promotion also reduces societal value,…