• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

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

Extracts from this document...

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.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Marketing section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Marketing essays

  1. The PEST analysis - used for all external activities that could affect the business

    Large target market Large Market share Good customer base + loyalty Unmotivated staff in the work place Too big a demand for a particular product Opportunities Threats Sponsorship for sporting events Diversify into a different market Expand Nationally Promote using large marketing strategies Cadbury's main competitor Nestle launching a new

  2. Critical successful factors of Walt Disney

    For the market entry strategies of Disneyland, it enter into new markets by different methods, for example, Disney found Disneyland Paris and the majority share holder in Disneyland Resort Paris with 39%. It is owned by a French company Euro Disney S.C.A.

  1. Greggs plc intend to expand their operations into international markets in order to satisfy ...

    Psychological distance between the home and host country can also determine the success of international activities and thus have been incorporated into the process. The French have a wide selection of elaborate, exquisite and gourmet dishes. This contradicts the typical product proposition offered by Greggs.

  2. Ben Sherman Report

    They believe shopping is both a social activity and an opportunity to demonstrate to peers their ability to buy. As consumers, they are as impulsive as their financial circumstance will allow. * Thinkers. These consumers are the high-resource group of those who are motivated by ideals.

  1. strategic analysis of walmart

    of the distribution center; the area then was filled back (or saturated back) to the distribution center. Each distribution center operated 24 hours a day using laser-guided conveyer belts and cross-docking techniques that received goods on one side while simultaneously filling orders on the other.

  2. Marketing Report

    Axe is high on advertising and targeted at males in the age group of 16-25. At the same time, the company has the brand Rexona that is targeted at the segment seeking long lasting effect of the deodorant. Rexona is the largest deodorant brand in the world.

  1. PESTEL analysis on the external business environment of Malaysia based whisky industry.

    This means that the main market for whisky industry in Malaysia is the Chinese and Indians drinkers. In other words, the market of whisky industry in Malaysia is restricted to just a small proportion of population and therefore the demand for whisky is not as high as other countries.

  2. Starbucks Complete Analysis

    An application lets customers track rewards and reload balance, using PayPal or functions as a card. 3. One third of Starbucks? customers use smart phones, and this application is available for BlackBerry and iOS giving customers a better customer service.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work