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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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

2.2.4. Technological Factors        

Appendices        

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). It has successful business around the globe. Now it wants to expand its operations into the new markets.

This report is mainly to address and analyze the issues facing the Mad Science as it embarks on expansion. In the first part, this report analyzes the Mad Science’s external micro-environment factors and discuses the most suitable market. In the second part, it discusses the external macro-environment factors and competitive factors of the Chinese market based on the PEST analysis and Porter’s Five Forces. In the last part, it gives a competitive strategy for recommendations.

2.0. External analysis

2.1. SWOT analysis and Discuss the Potential Markets

Based on the SWOT analysis (see Appendix 1), it identifies that the opportunities and threats of the developing country and developed country. The potential markets will be chose the developed countries like Germany, France, Japan which have high per capital GDP, or the developing country like China which has favorable demographics.    

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Compared the GDP of these four potential markets(see Appendix 2). In 2000, China’s accounted for only 7.1% of the world’s total GDP(in PPP terms). In 2010, that figure increased to 13.3%(Euromonitor International, 2010 ). From this data, it can perhaps be concludes that China has more comparative advantage than the other three countries except the USA.

 The data of the average income and spending for children ( see Appendix 3 ) highlighted that even though Chinese people do not have much income, they are saving most of it to spend for children. As discussed above, China will be a good ...

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