The People’s Republic of China represents the world’s largest market. Numerous w

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The People’s Republic of China represents the world’s largest market. Numerous w

The People’s Republic of China represents the world’s largest market. Numerous western based multinational enterprises have invested heavily in building up business in the PRC. One recurring issue often affects MNEs doing business in China is balancing existing customers with new customers. At the core of this problem are key cultural differences. China’s culture is widely known to be collectivist and is influenced greatly by the philosophy of Confucius and Mao. Whereas, western culture is more individualistic, whose thinking is influenced more by Locke and Jefferson.
Recently the Walt Disney Company has stumbled significantly in it’s rollout of the live action film Mulan. Disney attempted to create a product especially tailored for Chinese audiences, but before the film was released it received considerable negative attention. Criticism was directed at the film, the parent company and actors. The condemnation came from both individuals and government officials in the United States and abroad.
In response to the controversy, Chinese authorities advised major media outlets not to cover the release of the film. Consequently the lack of publicity created a weak opening weekend (ticket sales generating only $23 million). Disney spent five years on the project and production costs totaled $200 million. Although not published, marketing and distribution costs can reach hundreds of millions.
Please read All of the following:
https://fortune.com/2020/09/20/disney-mulan-2020-china-box-office-flop/
https://hbr.org/2014/04/the-limits-of-scale
https://www.rubio.senate.gov/public/index.cfm/2020/9/rubio-colleagues-send-letter-to-disney-ceo-over-filming-in-xinjiang-where-more-than-a-million-uyghurs-are-in-camps
https://data.worldbank.org/indicator/NY.GDP.MKTP.PP.CD?most_recent_value_desc=true
In this discussion thread, please analyze the Mulan China debut and answer the following:
How important are the different customer segments to Disney’s business
Why is it strategically important to balance the existing customer base with the new customer base?
Are there alternative ways Disney could have better handled this situation, if so how?
The consumer market in China is larger in volume of consumers as well as total consumer expenditures, should this affect who Disney prioritizes?

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