All posts by fu079036

How China Won the Keys to Disney’s Magic Kingdom

http://www.nytimes.com/2016/06/15/business/international/china-disney.html

I found this article interesting (Only focused up to “Mickey in the land of Mao”) because it directly relates to the discussions we had in class and it shows how difficult it can be to continue expanding into new markets. In the case we read we saw how Disney at the time faced a dilemma on whether to remain true to the “Americanized” version of what Disney represented vs. modifying it to the local culture in one way or another in order to draw in customers. One specific quote from this article that caught my attention said, “Worried that importing classic rides would reek of cultural imperialism, Disney left out stalwarts such as Space Mountain, the Jungle Cruise and It’s a Small World. Instead, 80 percent of the Shanghai rides, like the “Tron” lightcycle roller coaster, are unique, a move that pleased executives at the company’s Chinese partner, the state-owned Shanghai Shendi Group, who made multiple trips to Disney headquarters in California to hash out blueprint details.” Contrary to Disney’s initial resistance in Europe in allowing the sale of alcohol in their theme parks in order to keep the same culture found in the U.S, leaving out key rides really caught me by surprise. It will be interesting to see how Disney performs in this market. They are set to open in just two days, June 16, 2016.

Is The Acquisition Of AdeS Significant For Coca Cola?

http://www.forbes.com/sites/greatspeculations/2016/06/08/is-the-acquisition-of-ades-significant-for-coca-cola/#75850303455f

When I think of Coca-Cola I think of a nice soda beverage that I can enjoy on a hot summer day or something I may have alongside a slice of pizza. The word “healthy” does not even come to mind. But as the article discusses, Coca-Cola has entered into an agreement to acquire “Unilever’s AdeS soy-based beverage business.” It’s interesting that Coca-Cola would want to enter into this segment. What’s even more interesting is that the revenue generated by this brand only resulted in $284 million which isn’t much compared to Coca-Cola’s total revenue of $40 billion.  Digging in just a little further we can see the main reason that Coca-Cola is making this acquisition and that is to gain access to markets such as Brazil, Mexico and Argentina which is where the brand currently sells in. This allows Coca-Cola to place a greater part of their foot in South America in order to strengthen their presence and continue seeking potential opportunites in countries they may not have penetrated significantly. We can all see that even large companies that have made a name for themselves may sometimes need to enter new segments or find alternatives in order to increase their international presence which is what will lead to more growth and more profits.