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Mad Science, a children's education franchise which has a successful business around the globe. Now they want to enter new markets to expand business. This report seeks to carry out an external analysis of the Mad Science and the potential markets they

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Introduction

Managing International Businesses for IBC EB3803 External Analysis of Mad Science 16th December 2011 Words: 1506 Abstract Mad Science, a children's education franchise which has a successful business around the globe. Now they want to enter new markets to expand business. This report seeks to carry out an external analysis of the Mad Science and the potential markets they could enter. The analysis has shown us that the best choice of potential markets will be China, because China has the largest children, increasing economy, and the traditional Chinese culture has influence people are very importance on the education investment. These will be the opportunities to Mad Science enter the Chinese market. However, the threats from the strong competitive will be influenced Mad Science expand the business. Consequently, this report would recommend a differentiation strategy would be appropriate for it to enter to the Chinese market. Contents Abstract 2 1.0. Introduction 3 2.0. External analysis 4 2.1. SWOT analysis and Discuss the Potential Markets 4 2.2. External Macro-environmental Factors into the Chinese Market 5 2.2.1. Political Factors 5 2.2.2. Economic Factors 5 2.2.3. Social-Cultural Factors 6 2.2.4. Technological Factors 6 2.3. Competitive Factors 7 2.4. Competitive Strategy 8 3.0. Conclusion 8 References 9 Appendices 9 1.0. Introduction The Mad Science is a children's education franchise which has offered a wide range of hands-on, science-related programmers and activities targeted specifically to children (Mad Science, 2009). ...read more.

Middle

Especially in the cities, parents are more pay attention on their children development, they do not want their children are falling behind others. China as a cheap manufacturing base, a growing market gives the investor so many opportunities. That is the reason why so many investor want to enter this market. This market has a high investment returns and investment in a fastest-growing economic country will be the strength(Kew & Stredwich, 2008). 2.2.3. Social-Cultural Factors For the Social-Cultural perspective, with a population over 1.3 billion, there are more than 264.78million people under 14 years in 2010( Baike Baidu, 2010). There are hundreds of billion potential market scales. The Chinese education market(2009) reports that there are more than 300 billion potential market scales. It appears that market prospect is wide in Chinese children's education franchise. Xiaohuan (2002) has pointed out since the one-child policy, a lot of families just have a child, parents have been paying ever greater attention to the early education of their children. No matter whether their family rich or not, they all never stingy to investment on children's education. They hope their children have more competitiveness in the future. 2.2.4. Technological Factors The children's education franchise was grown up at 1990s in China, at present, this market still in the development stage. ...read more.

Conclusion

It can develop service differentiation to get the differentiation effects, a lot of Chinese company are focusing on the children exam-oriented education, but Mad Science is developing the children's innovation and practical ability. Considering the costs and risk, Mad Science can find a cooperative partner to make the strategic alliances with them. It can cooperates with some local primary schools which will reduce the cost and risk, it helps Mad Science to introduce its brand into the market. In addition, the business can start in some urban areas, such as Beijing, Shanghai, Guangdong. It will have more opportunities in these cities. The prices can be flexibility depend on the standards of consumption in this city. There people can afford the price of the service and accept the new things quickly 3.0. Conclusion In the light of the above external analysis and entry strategy for Mad Science, it will be concluded that China is a large potential market because of the increasing per capital income, high return on education, favorable demographics, government support and Chinese education system. Mad Science will has more opportunities to expand the business. Furthermore, this report has identified that strong competitive in the Chinese children' s education market. The threats from the new entrants and the intensity of competitive will be high. Finally, the report recommended a differentiation strategy will be suitable to deal with the threats. ...read more.

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