1INTERNATIONAL BUSINESS Introduction Disney is a world-famous multinational company headquartered in USA. It offers theme parks, toys, books, video games and other entertainment productions. Upon expanding its business to China, the company had faced various challenges as it was not accepted by the Chinese masses (Fish 2016). The purpose of this essay is analyzing one or more challenges faced by international business; it discusses the nature of issues faced and the actions taken by the business to support the discussion. Discussion WhenDisneyfirstenteredtoChinesemarket,itwasresistedasthefilmsand entertainment programs offered by Disney had western culture passed through it. It led to believe among the Chinese masses that Disney has attempted to control the thoughts of Chinese from the West. Various western elements used in the offering of Disney had affected the Chinese families. The world famous company had to face various barriers and challenges for setting its business in China (Rondinelli 2013). The western influences brought in by Disney had caused tensions among the Chinese politicians as well as the Chinese masses and common families. The country elites had campaigns to restrict the western influence in the deep routed traditional culture of China. It faced various accusations about infiltrating western values in the Chinese society. The subscription app was blocked for many months in China. These reflect the challenges that were faced by Disney in operating the Chinese marketplace.The DVD privacy was undermining the company’s efforts. The local competitors of China were remaking the same movies at a lower cost; the government censors board had it removed various sections from the movies before
2INTERNATIONAL BUSINESS releasing. It faced major challenges and difficulties in operating in the Chinese market (Pecora and Lustyik 2011). The difficulties and challenges made the company’s management rethink its business strategy for China. The company tactfully identified that its opportunities laid in the rise of the country’s middle class, as the annual disposal income had risen (Luo and Tung 2017). The company started producing educational materials and movies for its market. It has taken a bolder approach for marketing in China. It realized that parents of the children would be more inclined towards spending their saving to secure the best education for their children. Therefore, Disney started making English learning more entertaining. It required localizing its materials and contents in language centers. It was seen that Disney characters were already being used in English teaching schools reflecting its rise in demand (Lai-Ling Lam 2011). Further, increase in the annual income and rise in the population of middle class people had created an opportunity for the company. These were some of the points while considering the price for Disney. It order to expand its market globally, business organizations need to create a consistent and strong brand culture. The major challenges that can be faced by global marketing are language and cultural barriers. Therefore, companies need to overcome this barrier by instilling local materials and ensuring that the product or service is appealing to the local consumers. The local preferences of the consumers must be taken into consideration. Understanding the needs and preference of the local consumer, will help the company to identify the product portfolio and build a detailed marketing for penetrating the local market and ensure future diversification (Hoecklin2015).Gradually,DisneyimplementedtheplansforopeningvariousEnglish Language centers in Shanghai; it had English schools in different cities of China (Koehler 2017). However, it had to follow certain standards given by the educational authorities. The movies and
3INTERNATIONAL BUSINESS materials must be based on Chinese traditional fables and songs. Although Mickey Mouse was the theme, and the entrance and the chairs had Mickey’s face craved on them. The language was taught by native English speakers. Conclusion Therefore, it can be concluded that Disney has reinvented its strategy and its china business model along with a new product strategy to overcome the different business challenges faced. If the company had carried out with its old marketing approaches like extensive customer surveys, client focus group and present distributors, it would not have been able to survive and resulted in little insight. Thriving in the international market requires rethinking the consumer needs and involves a radical adjustment as per the activities, attitudes in a particular market.
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4INTERNATIONAL BUSINESS References Fish, A., 2016 Cultural diversity: challenges facing the management of cross-border business careers.Career Development International,4(4), pp.196-205. Hoecklin, L., 2015.Managing cultural differences. Addison Wesley Longman. Koehler, M., 2017. The unique FCPA compliance challenges of doing business in China.Wis. Int'l LJ,25, p.397. Lai-LingLam,M.,2011.Challengesofsustainableenvironmentalprogramsofforeign multinational enterprises in China.Management Research Review,34(11), pp.1153-1168. Luo, Y. and Tung, R.L., 2017. International expansion of emerging market enterprises: A springboard perspective. Pecora,N.andLustyik,K.,2011.Mediaregulationandtheinternationalexpansionof Nickelodeon.Journal of Children and Media,5(01), pp.4-19. Rondinelli, D.A., 2013. Resolving US-China trade conflicts: Conditions for trade and investment expansion in the 1990s.Columbia Journal of World Business,28(2), pp.66-82.