Disney Theme Park in Shanghai: Methods to Enter Chinese Market

Disney Theme park in Shanghai
Student Name
Professor Name
Course Title
Date
Introduction
The Walt Disney Company based in the United States is a diversified international mass media and entertainment multinational. Disney established its brand in the animation business before growing into live-action films creation and theme parks. Disney theme parks offer a set of entertainment attractions and other events for enjoyment to huge number of people. The massive number of Japanese tourists who were visiting Disney theme parks in America prompted Disney to consider international diversification of its theme parks. Disney has since opened Tokyo Disney, Hong Kong Disneyland, and Disneyland Paris (Glover & Earnhart, 2016).
Disney methods to enter Chinese market
Entry into the China market can rely on the government kindness and association. The China government maintains a list of restricted, unrestricted industries and a five-year plan that show areas that require development. Preliminary efforts by Disney to enter China market were futile because as a media company it fell into the restricted class. The Hong Kong Disneyland had limited success both as an entry point into the China market and as a profitable park. Disney devised a creative method of gaining entry into China market by starting Disney English, a chain of English schools for children. The education industry in China falls in the unrestricted category and it is easy to get required authorizations. The success of Disney English through expansion of its school chain in different cities acted as a medium of for Disney to penetrate into the China market as a media company. Furthermore, Disney English aided in building relationship with the government that proved successful through rapid growth of entertainment, parks, and authorization throughout the country (Barboza & Barnes, 2011).
Global Strategic Rivalry Theory
Global strategic rivalry theory centers on multinational companies and their attempts to achieve competitive edge in the international marketplace. The theory argues that firms to counter global competition in their industries should develop competitive advantages. Firms can establish sustainable competitive advantages by creating entry barriers in their industries that prevent new firms from entering into the industry or a new market. Firms competing in the international marketplace can utilize various methods to obtain a sustainable competitive advantage. These methods include possessing advancing in research and development, attaining economies of scope, forming strategic alliances, joint ventures, and having extensive experience in the industry. Walt Disney parks and resorts face domestic competition from various corporations, such as Six Flags, SeaWorld, and Universal theme parks. The theme parks receive million of guests annually and operate in various countries across the world. Disney has established competitive advantage against its competitors by diversifying its operation into new markets. The formation of joint ventures with international markets has facilitated Disney to achieve sustainable competitive advantages in the global marketplace. Disney formed a joint venture with the Hong Kong government that facilitated creation...