Question

In: Operations Management

Explain what facilitates the foreign firms entry to the Chinese TV market and evaluate their performance...

Explain what facilitates the foreign firms entry to the Chinese TV market and evaluate their performance (good/or bad). Can you state that foreign firms dominate the TV market segment? Why and why not?

Solutions

Expert Solution

The Chinese TV market is a large Market with 360 TV stations that need to import numerous foreign TV programs to serve a variety of audience.

Since Foreign TV Programs has large market share, Chinese Regulatory Authorities worried that domestic TV Programs would loose share, Chinese Govt. tried to enact relevant laws and regulations to reduce the amount of imported foreign programs and reverse the programming trade deficit.

China demand for foreign TV channels fluctuates from year to year. Therefore it is uncertain to forecast the demand for next coming years.

When it comes to international flow of television programs, policy factors are greater than market factors, thus an announcement such as ban on web streaming of several popular foreign shows would change the situation.

Foreign firms has definately dominated the china market for its shows but now China doesn't need foreign companies badly now in terms of acquiring advanced technology and capital.


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