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!