Assess the factors that might affect the success of a global business such as Disney when entering a new market such as China.
- Edexcel - A-Level Business - Question 1 - 2019 - Paper 3
Question 1
Assess the factors that might affect the success of a global business such as Disney when entering a new market such as China.
Worked Solution & Example Answer:Assess the factors that might affect the success of a global business such as Disney when entering a new market such as China.
- Edexcel - A-Level Business - Question 1 - 2019 - Paper 3
Step 1
Economic Factors
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Answer
One crucial factor influencing the success of Disney in China is the level of disposable income among the population. Higher disposable income can lead to increased spending on entertainment and leisure activities, making the market more attractive for Disney. Conversely, if disposable income is low or fluctuates, it could negatively impact sales.
Step 2
Infrastructure Development
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Answer
Disney's success may also depend on the existing infrastructure in China. Efficient transportation systems are essential to facilitate easy access to Shanghai Disney. If there is inadequate infrastructure, it could result in transport bottlenecks that diminish visitor numbers.
Step 3
Cultural Relevance
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Moreover, understanding the local culture and preferences is key. Disney must tailor its offerings to resonate with Chinese consumers, ensuring that their brand and entertainment options are culturally relevant and appealing.
Step 4
Competition and Market Entry Strategies
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The presence of local competitors can also affect Disney's success. If other 'western theme parks' or local attractions offer similar experiences, this could dilute Disney's market share. Therefore, strategic marketing and unique offerings are crucial.
Step 5
Government Regulations
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Additionally, navigating regulatory frameworks and securing necessary permits can pose challenges. Disney needs to build strong relationships with local authorities to ensure compliance with laws and regulations.
Step 6
Long-Term Strategy
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Finally, the long-term success of Shanghai Disney may depend on the company's ability to keep the park fresh and engaging, which may involve introducing new attractions like Toy Story Land. Continuous innovation is vital to maintaining consumer interest.
