Is entering Shanghai a right move for Disneyland? Why?

Question

Quizplus · Accepted Answer

The Answer is Entering Shanghai seems like the right move for Disney. Shanghai presents great opportunities for Disney. China's huge population provides a large-sized market. The country's fast-growing economy and uprising middle class imply strong purchasing power and future growth. As an internationally renowned brand, Disney is able to leverage its intellectual property in the Chinese market. Its investment is also supported by local governments and state-owned partners, who believe Disneyland will boost local tourism-related industries. Moreover, as more than 60 theme parks are being planned in China, Disney needs to get into the market quickly to preempt competition. Certainly, Disney faces some challenges. The company needs to develop a good understanding of what will be best received by Chinese consumers. There is also the risk of cannibalization as the newer, larger Disneyland Shanghai may take customers away from its parks in Hong Kong and Tokyo.

Is Entering Shanghai a Right Move for Disneyland? Why