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Wednesday, 18 May 2011

Socio-Cultural Problems faced by Disney Walt in Overseas Markets.

Socio-Cultural Problems faced by Disney Walt in Overseas Markets.
    Penetrating overseas market in not an easy task for business organizations. This is because of the   diversity of our social-cultural differences which greatly define tastes and preferences. Walt Disney is one of such international organization that has faced the hurdles of international marketing for instance, the penetration of in Chinese market.

Most firms assume the penetration in an overseas market is an uphill task; however, at times that is not always the case. Though people speak different language and have different cultural orientation, this does not mean they won't enjoy goods and services like Disney Walt's Cinderella or Mickey.

Cross-cultural differences not only have impacts on international trade but also to the domestic market. According to Tian, (2009), “The changed world makes marketing a cross-cultural process that requires marketers must be well informed with cultural differences nationally, locally, and ethnically to be the winner in the 21st  Century market.”

Disney Walt must realize that venturing into the Chinese market means that they are moving from a modernized culture to tradition-based culture of the Asian community. Therefore studying the market differences in cultural desires of these two groups would positively impact on their marketing success in China.
Another problem associated with international marketing in Chinese market for Disney Walt would be dealing with wage disparities. In China there is cheap labor that means low wage rates. However, if Disney Walt brings its US employees to China they would not only misunderstand the tastes and preferences of the locals but they will also face high cost of accommodation and food.

This is because foreigners are charged relatively higher residential costs than the locals. Their meals will also have to be prepared in selected restaurants at higher costs than the readily available Chinese foods. Therefore, for successful operation of Disney Walt in the Chinese market, the firm has to find remedies for the social-cultural issues above for a successful business in China.

Tian, R. G. (2009). Cross-cultural issues in the 21st century marketing. Accessed on September 9, 2010 from

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