To what extent is the ability to adapt to local cultures and tastes the key factor in determining the success of businesses trading with or operating in China?
To what extent is the ability to adapt to local cultures and tastes the key factor in determining the success of businesses trading with or operating in China?
Businesses need to adapt to local culture and tastes in order to appeal to the market that they are selling in. By doing this they will help ensure that their product/service is a success and does not fail as it did not meet the consumers standards and needs. I am going to explore how Disneyland, Starbucks and Lego, along with some other companies, managed success within china either through adapting to their culture or though a different method.
One way that the ability to adapt to local cultures and tastes is the key factor in determining the success of a business in china is because it makes sure that the business has a product that the market wants to buy. Disneyland is one company who did not manage to initially adapt their product to the chinese market. Disney did not research the chinese market enough before entering the chinese market assuming that they would like the typical American image that they had. This proved wrong as consumers were unfamiliar with the product and did not connect with the typical Disney characters. This meant that Disney had entered the market with a product that the chinese did not feel comfortable with because it was not the type of product that they were used to. Therefore the Hong Kong based park did not attract many customers resulting in low sales for Disneyland costing them money. In the long run this meant that they had to spend more money on adapting the park to the consumers needs in order to attract the chinese customers. They did this in ways such as reducing the price to meet chinese low income levels and having to adapt the labour practices, décor and settings and to the local visitors customs. Because of these mistakes made by Disney that cost them more than was expected they could have potentially failed as a business in china if it was not for them
Businesses need to adapt to local culture and tastes in order to appeal to the market that they are selling in. By doing this they will help ensure that their product/service is a success and does not fail as it did not meet the consumers standards and needs. I am going to explore how Disneyland, Starbucks and Lego, along with some other companies, managed success within china either through adapting to their culture or though a different method.
One way that the ability to adapt to local cultures and tastes is the key factor in determining the success of a business in china is because it makes sure that the business has a product that the market wants to buy. Disneyland is one company who did not manage to initially adapt their product to the chinese market. Disney did not research the chinese market enough before entering the chinese market assuming that they would like the typical American image that they had. This proved wrong as consumers were unfamiliar with the product and did not connect with the typical Disney characters. This meant that Disney had entered the market with a product that the chinese did not feel comfortable with because it was not the type of product that they were used to. Therefore the Hong Kong based park did not attract many customers resulting in low sales for Disneyland costing them money. In the long run this meant that they had to spend more money on adapting the park to the consumers needs in order to attract the chinese customers. They did this in ways such as reducing the price to meet chinese low income levels and having to adapt the labour practices, décor and settings and to the local visitors customs. Because of these mistakes made by Disney that cost them more than was expected they could have potentially failed as a business in china if it was not for them