Hello, everyone. Today our presentation is approximately the Distance, the length for a business to go in another region to build their business. Dosage distance matter?
And the presentation will be divided into 5 parts. Inside the 1st portion, we will use a model - the media giant STAR TV to research why it is delivery activity was failed and what's the really core concentration for a company whether it want to expand their business to other region. In the second part, we all will speak about a method, that are used to analysis how a firm choses a foreign target. And in the third portion, we will use a specific model вЂ“ South america вЂ“ to analysis many people a good choice pertaining to TRI (Tricon Restaurant International).
Now, Let me start the first part.
The US media giant Star TV was launched 20 years ago, and just enjoyed a guaranteed winner. In order to expand its business outside the US, it chose Asia as its target to deliver tv set programming to Asia viewers. It would focus on the only 5% of Asia socioeconomic pyramid, a newly rich top notch who could hardly only spend the money for service yet who also represented a nice-looking advertising marketplace. Since British was the second language for most with the target customers, Star could use easily available and fairly cheap English-language programming instead of having to spend heavily in creating new local programs. And by using satellites to beam applications into someones homes, it might sidestep the constraints of geographic length that acquired hitherto kept traditional tv producers out of Asia. Multimedia mogul Rupert Murdoch was so considered with this plan of action that his company, News Corporation, bought out Star's founders for $825 million between 93 and 1995. The outcomes have not recently been quite what Murdoch anticipated. In its fiscal year closing June 30, 1999, Star reportedly misplaced $141 million, pretax, in revenues of $111 million. Losses in fiscal years 1996 through 1999 found about 500 usd million most told, not including losses in joint projects such as Phoenix, arizona TV...