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Business Strategy Assignment Question
You have been asked to read the case example China comes to Hollywood: Wanda's acquisition of AMC (Johnson et al., 2014, pp.290-292) and answer the following questions:
- Considering Yip's globalisation framework, what drivers of internationalisation do you think were most important when Wanda entered the US market through its AMC acquisition?
- What national source of competitive advantage might Wanda draw from its Chinese base? What disadvantages derive from its Chinese base?
- In light of the CAGE framework, what challenges may Wanda meet as it enters the US market?
Business Strategy Assignment Solution
It is evident from the study that, the Chinese acquisitions of US assets and businesses have made investment of huge global market around $35 bn in 2011 for last decade years. Despite this Wanda's $2.6bn acquisition of chain AMC has sent a shock wave throughout the USA. It thus, has created the world's largest cinema company to collect high revenues and Wanda will make a control of about 10 per cent of the global cinema (Gledhill, 2012). Indubitably, Wanda cinema line corp. is china's largest operator by cinema screens with over 730 screens and its operations have been generating revenue source around $282 m in box office at 86 movie theatres now. A month prior to deal, Mr. Wang jianlin, the chairman of Wanda said that merger is keeping surprise to world when line was with advertisement of huge scale. Although this acquisition is met with several advantages and disadvantages, yet this merger seems to make Chinese box office as world largest popular scenario (Udomkavanich, 2012). When it comes to 100 per cent stake then it bears all stakes and debts. It is appearing as a huge success in china with diverse form.
Analysis of Wanda's acquisitions of AMC
Mr. Wang Jianlin, the founder and chairman and president of Dalian Wanda, who is also china's sixth richest man joined army as a teenager and in 1988 he founded Dalian Wanda. Wanda's acquisitions of AMC were largest with cultural investment and Chinese private firms and partnership, there is always some of concerns (Johnson, 2014). There is seen significant expansion of Wanda's acquisition of AMC with all over in American film industry. One can hope to see American moves that are banned in china. The political controversies have been raised with AMC.
Insights from yip globalization frame work and drivers of internationalization
AMC was considered as trophy and victorious acquisition in history of china and American entertainment industry and it was thus forced to making Wanda as a global cinema owner(Collins, 2010). The force that puts to internationalization includes that of making it as a global owner with theatres and technology
Where by evidence reveal way and thus shows movie experience on going with world's two largest movie markets. The drivers are expanding home market and Wanda will make benefit to
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