Walt Disney Company
The chosen top 100 global brands of year 2011 is the Walt Disney Company that deals with media production. The Walt Disney Company entertains the young though TV and also presents the theme parks. This company focuses on international growth as a major strategy towards development and expansion of their business across the world. The Walt Disney Company faces a lot of challenges when opening branches in a new country due to the diversity of wants among different people. These challenges may affect the company’s level of competition. For instance, the competition could lead to the international market mix. With this mix situation, the Walt Disney Company has to decide on the most suitable approach to use either standardisation or differentiation.
The Walt Disney Company deals with the marketing mix strategy. This means that the company has adapted the four P’s strategy. This includes the timely and proper delivery of Products, offering them at the favourable Price. More so, they employ the best Promotion channel at the right Place. The adoption of this strategy makes the Company reach its customer’s satisfaction and also, maintain the high demand of the company’s product. The four P’s, however, require some more aspects to ensure that the Walt Disney Company competes on a global market. For instance, the company needs to do a deeper research on the target market, as well as the consumers’ preference. This comprises of the diversity in the norms and customs, languages, as well as the currencies used by different people. All this is first considered since the main target of the international market mix is the product and how to make the targeted consumers adapted to it globally. This includes the size, quality, quantity, packaging, brand name among other qualities. With these aspects in mind, the Walt Disney Company provides a standardized price to all their products in the world. This gives their clients an opportunity to hire Disney services comfortably at any part of the world. This, in turn, ensures that there is a minimised cost of prices as well as production.
Disney as a media production company majors on movie production and distribution, television media, as well as consumer products. It has seen quite an extensive expansion in the recent years due to the application of marketing mix. It has its subsidiaries in China. For instance, Disney has a resort in Hong Kong, where they have already established the Disney Television Channel. This has enabled the company begin some partnerships with the Asian Film Companies, which makes the production and co-production of the local films easier and cheaper. This is also considered as a way of linking the Asian film industry to the immense characters in Disney films. There has been a notable trade improvement of film production and branding in central Asia as a result of the Disney world influence. This has made the Asian films rampant worldwide. For instance, the Asian films are currently being sold in large numbers in Africa. This is contrary to the sales and availability of the same in the past ten years.
The marketing mix strategy is also augmented by the fact that there has been an element of global tourism in the globe. The earth today is an international village, where people travel at any time to any part of the world. This has seen the exchange of cultures as well as creating awareness and a podium of understanding diverse individuals. The quest of the Walt Disney Company to educate people on other people’s lifestyles as well as expose the best has made them open several branches globally. This is also supported by the fact that there are several emerging cheaper flights to any destination. The long tours in the ancient times, which were extremely expensive, no longer matter nowadays. People in the modern world fancy travelling for a short period of time and go back to their businesses. This gives a channel for the Walt Disney Company to acquire more international marketing tips.
The Walt Disney Company has the power to influence the governments of various countries. Therefore, this makes them negotiate for the best markets for their merchandise along with the finest sites. For instance, they focused on the South Korea, Singapore as well as India before they got an approval to start their company in Hong Kong, China. They got forty-three percent stake of the resort despite the fact that they contributed less than twenty percent of the construction cost. This makes their marketing skills stand out and could be equated to the chief execution of getting the numerous financial benefits for their company.
This is an effective strategy, since Disney has managed to reach world markets as well as expand their business globally. Although Disney has been rejected in some countries like Japan since they want their original products, the Company has done its best in pursuing them. This is by offering some more local and culture based television programs as well as the sponsorship of the confined aptitude. Through this, the countries will eventually give in to their target. The Walt Disney Company has made a lot of impact on the foreign markets by adding capital into the new markets as well as expanding the economy. This also provides a conducive ground for the training of innovative skills. More so, Disney has maintained a low-cost of their services in central Asia. This has distinguished their services from other media houses.
The Walt Disney Company also takes into consideration the pollution of environment and ensures they take precautions for it. They adopt the environment Act in the respective countries they start their business. This helps them to maintain their good terms with the foreign governments. Therefore, Disney has all it taken to thrive in business. Their media production channels are of the best quality, a characteristic that helps them in convincing their consumers. This is also accompanied by the adoption of the best marketing mix scheme, which incorporates several aspects of business and its components. There has been an upward movement of economic growth all accounted to the Walt Disney Company both in the United States alongside Hong Kong. This implies that even their rejected proposals in countries like Japan alongside French are also considering their proposals. The Walt Disney Company has managed to convince them beyond reasonable doubts that they could greatly incorporate their cultures in the channels and still make them look like their own. This is still a procedure and a sector of the market that is still civilizing (Heskett 2011).
The Internalization process adopted by Disney Company
The internalization process theory involves the process of escalating the contribution of enterprises in the global market. The best Internalization Process theory that has been adopted by Disney Company is the enterprise theory. This theory explains that the entrepreneurs, who have decided to open a business in another country, should think globally and comprehend the intensive issue of international culture. This involves the understanding and appreciating of diverse human cultures as well as practicing them. This gives the entrepreneur and the consumers a social linkage through the world of business. The entrepreneur should also not relax after the accomplishment of this task but ought to continue an innovative research on the type of the product preferred, as well as all the market details. This helps the entrepreneur to employ strategies of being unique from the rest and devise ways of attracting more consumers.
This entrepreneurial approach helps the Walt Disney Company have a diverse market entry approach with the local and industrial conditions already set in the foreign markets. For instance, this theory has proofed that the Walt Disney Company followed the predictable internalization process theory in Tokyo, Hong Kong and Singapore. This was by choosing between the equity-based, as well as non-equity-based entry modes for the improved transfer of resources to the local and industrial services. The understanding that diverse local markets require diverse entry modes has helped the Walt Disney Company rule out their best target markets in the world. The equity-based entry mode involves the commitment of resources in, for instance, the managerial skills and machinery. This is because the cost of machinery, as well as the high-technology based equipments must be budgeted for properly.
The Walt Disney Company has also incorporated the aspect of acquiring the fastest as well as the foreign market ability of overpaying for the goods (Beckman 2011). This is a great risk involved in such operations, but the Walt Disney Company holds to the process. The risk involvement scheme also incorporates the post-acquisition challenges, which include the process of assimilating the local cultures. This gives the company the possibility to earn great returns if the business prospers. The Walt Disney Company also relies on joint ventures to level their base of resources. This maximizes the domestic expertise while minimizing the risk. The only challenge in joint ventures involves the maintenance of a good business relationship with the partner.
The theory adapted by Disney also involves the contractual agreement, which comprises of licenses, contracts as well as alliances with other companies. Licensing allows Disney Company to use the trademarks of the country they are situated, patents along with the business methods. Licensing works best for the Walt Disney Company since they set their business in the countries, which are sturdy economically and have a preference for conducting business with foreign companies. For instance, Hong Kong has made the Walt Disney Company be welcomed and assimilated into the Chinese culture and objectives due the state’s high economic growth. Therefore, the enterprise theory is the best internalization process theory that best explains the situation of the Walt Disney Company. This is because it covers all the aspects of business both locally and at international level.
How Country of Origin Effect (COO) Influences Consumer Perception of the Walt Disney Company
The country of origin effect engages the Walt Disney Company in managing the diverse perceptions of the standardizing the products as well as evaluating them. The consumers usually get a clue of the product being sold from the country of origin. For instance, commodities from China have had a negative impression in the market as fake ones. This is due to their level of durability and cost. They tend to have a relatively low cost but not durable. Therefore, if an individual needs a durable product, the China option would not serve him better. This issue necessitates the country of origin to properly brand their product. The issue of markets becoming so competitive has led a more demand of an extra work rather than the normal branding, packaging and promotion of goods and services. The Walt Disney Company is not an exception to this changing world. The consumers are more bent on value rather than the normal feature of a product. Some of the value traits that could make a distinction in the Walt Disney Company products include the level of convincing consumers to purchase the product and consider the intensity of modernization in the particular product. A strong brand given to the Walt Disney Company helps to set the emotional and rational connection between the commodity and its consumer. For instance, movies produced in the Walt Disney Company have a unique name and the symbols attached to them draw the attention of the consumer. The high quality and exciting films are recommended by several individuals in the world, who employ their services. This creates a positive differential effect due to the recommended consumer responses to the Disney services.
The country of origin effect also has an influence on the cult brands, which result from a shift of consumer power to the result of consumer management. This is a feeling of a more sense of belonging to the Walt Disney Company and its products other than just buying their products. The Walt Disney Company has used the cult brand approach to own several consumers by offering specific brands of their products to them. This is linked with love marks, which create loyalty that goes beyond the normal limits. The Walt Disney Company achieves this by offering inspiration to their consumers, which is beyond their expectations (Rosenberg 2012). For instance, the Walt Disney Company could sell the movies or produce them and as a love mark technique, create an international market for them. They provide these services for free so as to encourage their consumers and retain them. This makes a high appeal and maintains high level of respect amid the Walt Disney Company and their consumers. As a result, the consumers get extremely impressed with such appealing services and market the Walt Disney Company services all over the world. This improves their income as well as the level of national growth. The Walt Disney Company has been using the above strategies, which contributed to the vast accomplishment in the Media world. They compete with several other companies with the unique style while still researching on other innovative market ideas. The country of origin market strategy is applicable to all businesses. This is because it defines the ways and channels, through which the Walt Disney Company among others innovates and applies several methods to compete well.
In conclusion, the Walt Disney Company suits all the international standards of multinational companies, a characteristic that outlays it uniqueness in the market. The Walt Disney Company is, therefore, considered one of the best media houses. The year 2011 saw it ranked among the top one hundred companies in the world among others. With the application of the discussed theory, the company still has a chance of expanding their links to several parts of the world. This also helps to maintain peace and harmony by linking diverse world and cultural experiences into a wonderful experience. Thus, it qualifies to be a worldwide top brand media production company