Disney's Move to China

Disney’s move into English language teaching in China was a strategic move. It recognized the fact that China’s booming (growing) population consisted of a huge middle-class household who were focused on education but did not speak any English. This initiative goes beyond just being a business/profit opportunity because it benefits the Chinese consumer as well as Disney, in the long run.

It is more than likely that if Disney had chosen to enter (just using its entertainment business: animated movies, toys, parks, etc) China’s growing market with disregard to the language barrier, they would have had little or no success due to the lack of understanding of what Disney stood for and what it was all about --- children (and families) would not have been able to connect to the brand. By establishing these learning centers, and connecting the children’s learning experience with Disney characters, Disney is being strategic in providing resources in a land that is over-populated and under-resourced for English education. It will be successfully hooking these people to connect to a brand that can be associated with a positive philanthropic effort (concerned about people and promoting education) and one that lives up to its brand promise. Also noteworthy is the fact that China (and India), the most populous nations in the world, have the highest number of immigrants moving to the US – signifying considerable interest in the US and its industries – implying perhaps the need to be more “western” and “modernized”.

There are some particular potential risks to Disney’s effort. Of particular significance are the political ones. The Chinese government can feel threatened by the infiltration of the English language into their land, and may try to create entry barriers with trade costs. Additionally, some traditional Chinese may take the introduction of English into their nation as western dominance and that can create a backlash, not just in bad PR but also in brand...