Question

In: Economics

What are the risks and benefits of expanding the Disney brand in New ways such a...

What are the risks and benefits of expanding the Disney brand in New ways such a s videos games or superhouse

Solutions

Expert Solution

Well, my first thought is why would they expand in the first place! Superhouse markets are increasingly dominated by seasoned real estate players as a part of their innovation strategy to acquire new customers. So anyhow let's look at some benefits and cons associated with this proposal of Disney.

Benefits:

  • With Disney's main attraction being Children, venturing into videogames can act as a gamechanging business level strategy if executed with finesse.
  • A chance to increase the market share by expanding the domains of their product. Disney is a hit, so most of the kids will be willing to buy them.

Risks:

Well there are quite a few cons if they wanna expand their business in the domains mentioned:

  • Since these are fairly new fields for Disney, the risks of failure associated with the same is high. Remember the terrible decision of Disney to enter Germany. That incidents taught them a fitting lesson on not to enter markets without a proper analysis.
  • The target audience is the same. Well, you might ask what's the risk here? The scope of expansion is very minimal in this case. Unless disruptive innovation are brought up every now and then, Disney can face a terror.
  • Countering established players can be difficult and one of the factors Disney needs to consider before entering the market.
  • In case of Superhouse, the core audience itself is altered. Like Kids don't buy houses, do they?! This shift needs a lot of effort and groundwork to be put, and I don't think that's needed if Disney reconsider their decision.

Hope this helps. Do hit the thumbs up. Cheers!


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