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
Levels of Income and Disposable Income
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Answer
The levels and growth of disposable income in China are crucial for the success of Shanghai Disney. Higher disposable income generally leads to increased consumer spending on leisure activities such as theme parks. This change in the economic environment can make visiting Disney parks more affordable for more families.
Step 2
Infrastructure Development
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Answer
Improved infrastructure is essential for successful operations. Increased transportation options, such as better roads and public transport, can ease access to the park. Otherwise, bottlenecks could occur, negatively impacting visitor experience.
Step 3
Brand Recognition and Customer Expectations
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Answer
Disney has a well-known global brand associated with family fun and happiness. This strong brand can create immediate expectations from consumers, which must be met to retain customer loyalty.
Step 4
Competition from Rival Companies
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With the presence of other theme parks in China, such as Universal Studios, Disney must continuously innovate. The competition could increase as rivals offer similar services, affecting Disney's market share.
Step 5
Local Partnerships and Knowledge
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Collaborating with local firms like Fosun International can aid in overcoming challenges in regulatory requirements and cultural preferences. Local insight can help Disney navigate potential hurdles in planning and infrastructure.
Step 6
Long-term Strategy and Product Offering
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Answer
The sustainability of Disney's success may hinge on the long-term strategies they implement. Innovations in attractions, such as regularly introducing new rides, can help maintain consumer interest and adapt to evolving preferences.
