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 2 - 2019 - Paper 3
Question 2
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 2 - 2019 - Paper 3
Step 1
Levels of Income and Disposable Income
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Answer
The levels of disposable income in China play a significant role in the success of Shanghai Disney. As disposable income increases, more families are likely to afford the costs associated with visiting a theme park. Higher disposable income in urban areas of China can further bolster ticket sales.
Step 2
Infrastructure and Accessibility
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Answer
The existing infrastructure, such as transport links, is crucial for accessing the park. If reliable transport exists, it can ease the influx of visitors, but bottlenecks could occur without adequate infrastructure, affecting customer experiences.
Step 3
Brand Recognition and Positioning
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Answer
Disney already has a strong global brand identity. However, adapting its marketing strategies to align with Chinese cultural values and preferences is essential to attract local consumers effectively.
Step 4
Competition and Local Partnerships
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Answer
Competition from local theme parks and international competitors could impact market share. Establishing alliances with local firms, such as Fosun International, may provide valuable market insights and facilitate smoother operations.
Step 5
Regulatory Environment
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Answer
The regulatory landscape in China can significantly influence operations. Adhering to local laws and regulations, including labor laws and safety standards, will be necessary to avoid fines and damage to reputation.
Step 6
Long-term Strategy and Innovation
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Answer
To sustain success, Disney must commit to regular updates and innovations in its offerings. The introduction of new attractions, such as Toy Story Land, can maintain visitor interest and extend the park's lifecycle.
