Module 6 Essay Example | Topics and Well Written Essays - 500 words - 2

Module 6 - Essay Example Having built their reputation, Disney expected that it can easily penetrate the European market. Although there were other theme parks in Europe, the company’s reputation makes customer’s lack close substitutes. As matter of fact, Disney entrance in France, not only deployed the monopolistic advantages that existing companies but also increased competition in the region hence improving quality. Tourism industry in USA is always negatively impacted by the strengthening of the dollar. Reduction in number of tourist reduces Disney’s revenue significantly. To counter this, Disney opted to enter the European market. Research has shown that the euro and dollar strengths counter each other hence Disney can still capture their customers during dollar peaks. In a nutshell, Disney aimed at capturing tourists who are not willing to visit USA. Another motivating factor might be reduced costs of production. Although the cost French labor may not differ to US labor, capital is relatively cheaper. Moreover, France ought to be the best European country of their choice due to the availability of government subsidies on land. In accordance with the above, it can be concluded that Disney’s choice of France as an expansionary strategy increased its sales as well as customer base. However, Disney maintained its reputation by equally treating the new parks and not jesting on quality deliverance and customer satisfaction. In an effort to reduce US imports from japan, the US government threatened to impose a quota. The aim was to discourage Japanese from exporting to US and in response invest directly into the US economy, inform of FDI. In contrary, japan decided to withdraw their imports instead, hence making the US economy suffer. By 1981, there was great demand for cars in US. For that reason demand exceeded supply hence need