Theme parks are normally a place to enjoy a nice day out with your friends or family. However, in mainland China, theme parks may soon turn into a battleground. Wanda Group, a conglomerate that has opened several amusement parks across China over the last few years, has warned Disney about its theme park operations in China. It’s certainly not easy, if possible at all, for Wanda to make Disney unprofitable. Will lowering price at the cost of lowering its own profit help, or improve the quality and service is more practical? Maybe the best solution is to get along with the competitor.
It is a good time to reflect on Singles Day, a shopping carnival initiated by Alibaba that has just yielded a record-breaking sales of $17.8 billion, exceeding that on “Black Friday” in the US. It looks like everyone benefits: vendors sell, buyers get cheap goods and Alibaba profits through advertising fees and transaction commissions. But consider: to sell more, vendors lower product prices and sacrifice per-unit margins, yet they might not be able to make up on volume, as most of the items purchased are durable goods and therefore most of the increased sales on Singles Day are probably shifting sales from earlier or later periods.
The opening of the 1960s television show Star Trek which followed the voyages of the Starship Enterprise explained that its crew’s mission was “to boldly go where no man has gone before.” For firms the mission can be quite different as they often have to go where others have already gone. Unless a firm is the first to enter a market, it will face one or more incumbents upon entry. In such cases, how should a firm decide whether and where to enter? A look at how this worked out in the case of Uber and Didi Kuaidi in China’s competitive taxi hailing app market.
CKGSB professor Brian Viard on why Chinese banks are resorting to paying bank interest through Mercedes Benz cars, iPhones and even vegetables.
Examining the possible reasons behind the merger of two Chinese train manufacturers, China CNR Corp. and CSR Corp.
What industry incumbents can learn from the forces that guide market entry.
Various cities across China are restricting new car purchases in an effort to curb pollution and traffic using either auctions or lotteries. Which of these two methods works better? In efforts to contain rapidly-escalating congestion and pollution, city governments across China are experimenting with numerous methods to pull cars off the road. Some of these […]
China’s 2,132-year old salt monopoly and why it makes sense to finally end it. Early last year Taobao, Alibaba’s online marketplace, went through a cleansing process to remove contraband being sold by merchants on the site. What was this illicit item? Was it cocaine or heroin sale of which is prohibited under China’s Drug Administration […]
Last time I discussed how important movie-release timing is to box office sales in the US and how studios play a game of “chicken” to obtain the choicest time slots. This time I talk about how differently things work in China. Last time I talked about how studios play a game of “chicken” when scheduling movie releases […]
Box office sales are a function of movie release timings, but warding off competition is a different ball game altogether. If you have ever watched James Dean in the movie Rebel Without a Cause, you probably remember the famous scene in which Dean’s character Jim Stark plays a game of “chicken” against the […]