Why Disney Tickets are so expensive?

Disney World is one of the greatest places to enjoy a family vacation. However, with high ticket prices, one of the happiest places in the world has become the most expensive place to visit. The reason why Disney hiked their prices is the introduction of new attractions and new parks. With the new addition, Disney will be busier. Raising ticket prices was a plan to regulate the number of visitors to the park. The company envisions that if the number of visitors goes down, there will be a decrease in wait time.

Disney has continually reviewed their ticket prices over the years. Though this is good for the company, to the loyal customers, it is not a good thing. According to the Business Insider, Disney World’s annual collections have gone up considerably. Visiting Disney World in summer days is a huge convenience. However, it is very costly: the hotel prices are high, and the charges for the park are also high. It is cost friendly to visit the park on a less popular day. Disney raised the prices on Disney World tickets as a strategic plan: it wants people to spend more time in their parks. By increasing the cost of a 1-day ticket, purchasing multiple tickets seems to be a better arrangement; a guest who spends more days at the park will spend less money on foods, hotel and more.

The turnout at Disney World has always been high. As highlighted by the Business Insider, Disney World attendance has continued to rise more than before; hence, the company is generating more revenue. In 2018, the park attendance grew by 7%. However, if Disney continues to increase the price of the tickets as has been the case, the cost will be too expensive for an ordinary family, and it will lock out several people.

Louis Vuitton Pricing Strategy

Well, you may be contemplating on buying Louis Vuitton products but you are not sure about the price being charged in your locality. On this note, it is important noting that Louis Vuitton brands are charged differently in different countries. The price charges are largely dependent on several factors ranging from costs of production, expenses incurred, and profit and among other factors. Additionally, a country factors such as tax among other things will come into play when determining the price charges for Louis Vuitton products. Nonetheless, it is essential understanding that Louis Vuitton unique brand, originality and identity play a major role in the price charges. This is what makes Louis Vuitton brands a bit expensive as compared to other brands available in the market.

Moreover, the durability, quality and market demand contribute to the price being charged. For example, in Japan, a canvas goes for 139, 320 yen and China 9,050 yen. This is affected by the cost of production in these countries and the overall demand for the canvas in the market. China, for example, has low production costs resulting from low labor costs, which make the products being sold cheaper. On the other hand, Japan cost of production is high, due to a number of factors such as access to raw materials and labor costs, which make the products expensive.

The above information is a clear manifestation that Louis Vuitton brands do not have fixed prices. The price charged in any given country will depend on factors in play in that country such as ease of doing business, cost of production, labor costs among others. The pricing strategy of Louis Vuitton, therefore, is aligned to country factors in terms of cost production and is market specific in nature.

Why Gas Prices Fluctuate from City to City?

Have you ever wondered why gas prices vary from city to city, day to day? Gas prices are reliant on the price of oil and there are diverse factors that make the prices vary from one city to another such that a buyer in a specific city buys the gas at completely different prices at the same day and time in another city. Such factors include wholesale cost, transport costs, taxes and price on the street.

First are the supply and demand. An oversupply happens when the quantity of oil is higher than the people purchasing it. As the quantity supplied is high, the prices of all the petroleum products including gas fall, reducing the prices. The next factor is the value of the dollar. The global benchmark prices for all the petroleum products such as LPG, diesel, and petrol among others are priced in US dollars, therefore, the strength of the local currency in is likely to influence the price in the different cities across the world.

Petrol price cycles are the next factor that causes variation in gas across the cities. The sequence of pricing in diverse cities across the world sees prices fall gradually followed by a sharp rise. This occurs due to deliberate pricing policies and regulation of petrol retailers and is not directly linked to alterations in costs. The petroleum regulating agencies monitor these cycles and recommend the cheapest and most pricey days to purchase fuel in the cities. The next factor is the competition of the local market. Lower prices of gas and other petroleum products are generally observed in cities with many independent retailers since the competition between retailers is high. For this reason, cities with fewer retailers the gas prices is higher with some cents as compared to cities with many autonomous retailers. Last but not least is the regional factors.

Amazon: Technology Making International Marketing Easy

 

According to a Reuters article from earlier this year, more than one-quarter of all Amazon sales for third-party sellers on the platform were cross-border transactions. Leveraging its supply chain infrastructure, brand recognition, and international customer service operations, Amazon is able to provide sellers with a level of support that makes selling internationally nearly as easy as selling domestically.  Amazon offers both international Fulfillment By Amazon (FBA) in an expanding number of countries and FBA Export to sellers of all sizes.

Through its FBA program, Amazon is offering small and medium-sized businesses a means of quickly and effectively expanding internationally.  Amazon is able to distribute these sellers products to countries throughout the world with minimal shipping time, handle taxes and tariffs as required, and provide customer service in the local language on behalf of a business. Additionally, Amazon is able to provide sellers with connections to services that will assist with customizing product detail pages and messaging to adapt to local cultures on country-specific Amazon platforms.  Smaller companies are also able to capitalize upon the trust that consumers have for Amazon, reducing the need for individual sellers to build trust beyond that of Amazon reviews and rating.

This offers a significant opportunity for smaller businesses that may not have considered international sales an option.  An increasing number of these companies are opting to sell in Amazon’s expanding international channels, which has led to cross-border sales growth for Amazon increasing at a rate that is outpacing its 31% overall net sales increase.  This trend also means an increase in competition in all international markets that Amazon is able to serve as a growing number of sellers begin taking advantage of Amazon’s programs. For marketers, it may be difficult to continue with differentiation or low-cost strategies as more and more markets become saturated.  This may eventually lead to a large number of companies developing a more focused differentiation approach in order to target a niche market that may value a very specific product offering.

With the successes that Amazon is seeing from employing robotics, information tracking, and internet technologies to allow companies of all sizes to sell, market, and distribute products throughout the world, it is likely that other large global e-commerce players like Alibaba, jet, FlipKart, and Rakuten will work towards copying this strategy. There is a high likelihood that marketing globally will become more cost-efficient and simple for businesses of all sizes to incorporate into their businesses.  In domestic markets, companies will need to consider the potential threat that this ease of market entry by international competitors will generate. Additionally, companies, especially those that are early adopters, will have the potential to greatly increase their revenues and global reach.

References

More Than One-Quarter Of Amazon Merchant Sales Cross Borders

https://www.reuters.com/article/us-amazon-com-trade-exclusive/exclusive-on-amazon-a-quarter-of-merchants-sales-are-cross-border-idUSKBN1GW1AE

Think You’re Too Small to Export? Amazon Can Help

http://www.supplychainquarterly.com/news/20180501-study-amazons-fba-onsite-program-poses-a-threat-to-3pls/

5 Tips for Hiring a Great Web Developer for Your Business

Hiring a web developer can be one of the most critical decisions you will ever have to make. After all, it is a web developer that is responsible for the creation of the online face for your company that will enable you to interact with your customers. So it is very important to hire the right person for the job, else you risk harming your business and also wasting time and money looking for a replacement. In order to avoid these, here are five tips to help you in the selection process:

  • Know what you don’t want and what you want

The first thing to do before searching for a web developer is to make a list of the websites you admire. List out what you like about these websites, whether their designs, workflow or their functions. This will help the developer to know what you want and what you are expecting. Also, try to list out what you don’t like about some of the websites so that your web developer will not make the same mistake while developing yours.

  • Check out your potential web developer’s portfolio

When hiring a web developer, their experience and skills are very important. So reviewing their past or current job will help you to know if they suit your taste, or can deliver what you want perfectly. You can also ask the web developer for past references and look at the sites previously designed, and also ask for help navigating through the portfolios.

  • Don’t choose a web developer with a particular skill set

When you are selecting a web developer, don’t choose a developer that only knows a specific technology and may not adapt when a new one comes along. Rather, choose a developer that has the aptitude and can learn new technologies easily when they come up, and also adapt to situations easily.

  • Be sure the designer can meet your deadline before you start

Ask the developer if he/she can meet up with your deadline before you commit to the web developer. Also when you are discussing your web project, ask if he/she is clear on what you want for your project, the number of changes you want on the project, and the timeline to be met.

  • Set a realistic budget

The cost of your website design depends on the requirements of the project. Which includes the intricate design of the website, special functions, and the number of pages. In web developing, you get what you paid for. Although, you might be able to get it for a cheaper price from another person, always remember quality is important too.

 

In the end try finding a website developer that has proven results, a good reputation, and one that you can trust with your website project. Even though the process of selecting a web developer can be tiring, tedious, and very stressful, we hope these tips can help you make decisions easily.

Important international business organizations and their influences—Part-ii

Benefits and Challenges at the same time

Join IBOs could bring different effects to businesses and member countries. From one hand, IBOs give business a good platform that would allow them to match resources globally. From another hand, Join IBOs could also put more constraints and extreme competition to developing businesses and member countries. The best example to explain this conflicts will be China, as a member, in the WTO organization. Since China got the membership of WTO in the early 2000s, it has been a big boost to the country’s economy. WTO built bridges for products from all over the world to China, at the same time, China also traded with many international markets. Because of China’s relatively low labor cost and less authorization cost, its products are cheaper, various and widely accepted by the global market. After China joining the WTO, the amount of its export amount has been consistently growing, until 2013, it surpassed the US became the biggest trading economy. However, China has also been criticizing violating rules of WTO. “No complete legal protection for labor; Protectionism for specific industries; disrespect to foreign intellectual properties.” These all are complaints that from other WTO members. The tax adjustment started by the US recently, clearly put pressure on China and other businesses or countries which supply chain has China involved. Importantly, all the complaints and appeals are submitted under the rule of WTO, from a broad perspective, an understanding of what is fair activities under the WTO’s system.

  Internal politics and interest representation

   Who is the biggest influencer of IBOs? What are guidelines for the interest allocation of IBOs? The answer is, there are always battles ongoing, IBOs are working on balancing different interests between different groups all the time. Let’s still use China as an example. Since joining the WTO, China’s attitude shifted from a senior member to an important role. China participated in appeal solving procedure for more than 80 times. What does this number mean? It means China contributed its opinion for its own or someone else’ interest for more than 80 times. Even there is no direct payback from the member that China supported. However, participation increased China’s influence in WTO. Later on, China became a leading force in global trade and cooperation. More and more members start to choose China as their partner, the group surrounding China started to get more interest. This phenomenon shows that IBOs aren’t only permanent rules or sets of bureaucracy, but also a good communication channel that allows economies and businesses to find their common interest then maximize it.

 

Important international business organizations and their influences–Part I

Globalization brought great opportunities to developing countries and businesses. Among the infrastructure of globalization, International business organizations played a very important role in the process of globalization and the communication between businesses. Moreover, these organizations have also become essential tools for dealing conflicts and developments between their members. As an international marketer, understand these IBOs’ functions and terms is necessary. We are going to introduce some IBOs and logic behind them briefly.

WTO (World Trade Organization)

The World Trade Organization (WTO) is an intergovernmental organization that regulates international trade. The WTO officially commenced on 1 January 1995 under the Marrakesh Agreement, signed by 123 nations on 15 April 1994, replacing the General Agreement on Tariffs and Trade (GATT), which commenced in 1948. It is the largest international economic organization in the world. The WTO deals with regulation of trade in goods, services, and intellectual property between participating countries by providing a framework for negotiating trade agreements and a dispute resolution process aimed at enforcing participants’ adherence to WTO agreements, which are signed by representatives of member governments and ratified by their parliaments. Most of the issues that the WTO focuses on derive from previous trade negotiations, especially from the Uruguay Round (1986–1994).

IMF (International Monetary Fund)

The International Monetary Fund (IMF) is an international organization headquartered in Washington, D.C., of “189 countries working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.” Formed in 1945 at the Bretton Woods Conference primarily by the ideas of Harry Dexter White and John Maynard Keynes, it came into formal existence in 1945 with 29 member countries and the goal of reconstructing the international payment system. It now plays a central role in the management of balance of payments difficulties and international financial crises.  Countries contribute funds to a pool through a quota system from which countries are experiencing balance of payments problems can borrow money. As of 2016, the fund had SDR477 billion (about $668 billion).

Through the fund, and other activities such as the gathering of statistics and analysis, surveillance of its members’ economies and the demand for particular policies, the IMF works to improve the economies of its member countries. The organization’s objectives stated in the Articles of Agreement are: to promote international monetary co-operation, international trade, high employment, exchange-rate stability, sustainable economic growth, and making resources available to member countries in financial difficulty.

OPEC (Organization of the Petroleum Exporting Countries)

The Organization of the Petroleum Exporting Countries (OPEC) is an intergovernmental organization of 14 nations as of February 2018, founded in 1960 in Baghdad by the first five members (Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela), and headquartered since 1965 in Vienna, Austria. As of 2016, the 14 countries accounted for an estimated 44 percent of global oil production and 73 percent of the world’s “proven” oil reserves, giving OPEC a major influence on global oil prices that were previously determined by American -dominated multinational oil companies.

G-20 (The group of twenty)

The G20 (or G-20 or Group of Twenty) is an international forum for the governments and central bank governors from Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, the Republic of Korea, the Russian Federation, Saudi Arabia, South Africa, Turkey, the United Kingdom, the United States, and the European Union, (plus Spain as a permanent guest member). Founded in 1999, the G20 aims to discuss policy pertaining to the promotion of international financial stability. It seeks to address issues that go beyond the responsibilities of any one organization. The G20 heads of government or heads of state have periodically conferred at summits since their initial meeting in 2008, and the group also hosts separate meetings of finance ministers and foreign ministers due to the expansion of its agenda in recent years.

Membership of the G20 consists of 19 individual countries plus the European Union (EU). The EU is represented by the European Commission and by the European Central Bank. Collectively, the G20 economies account for around 85% of the gross world product (GWP), 80% of world trade (or, if excluding EU intra-trade, 75%), two-thirds of the world population, and approximately half of the world land area.

Overall, as an international business manager, we should notice that different organizations actually represent different interests and associated parties. There is some obvious one side benefiting settings, moreover, combined with frequently changing relationships within IBOs. To corporations that who involved in the international market, be familiar with rules and backgrounds of IBOs will help them keep their advantage in the market, also have good resources to help them perform better in the market.

 

(All introduction of IBOs are from Public resources)

 

How Small Retailers are Fighting Back with Social Media

As international retailers continue to push for a seamless shopping experience in every corner of the globe, small retailers are forced to become increasingly creative in their fight to keep their heads above the water in the riptide of competitive retail markets.

Truthfully, it’s hard to go against the raging tide of e-commerce mania and instant gratification that has taken over consumer’s desired shopping experience. Small retailers simply don’t have the operational bandwidth and manpower to deliver One-Click Checkout with two-day shipping the way Amazon does.

But perhaps the key to not only surviving but thriving as a small retailer is using the power of individuality that the digital world otherwise sees as a cause of conventionality. Social media platforms were initially a way for “hipster” individuals who sought a unique voice to be recognized, until they morphed into the next great marketing tool for big and small business alike.

Recently, there has been a general consensus that the use of social media platforms as a digital dart board for one’s every passing thought or action has reached saturation points.

Yes, there are startling statistics on social media usage. With 11 new users every second and over three billion users across various platforms every month, social media is certainly not disappearing – it’s just a matter of using it smarter, not harder.

2018 digital and social media statistics.

Instead of commandeering the use of Facebook, Instagram, and Twitter the way an international retail giant like fashion brand H&M might, small retailers need to go back to more simple ways to harness the incredible interactive power of social media.

Take Salt Creek Farmhouse, a rustic furniture business with husband-and-wife team who oversee everything themselves, from design to distribution. Conventionally, small businesses have been taught to use social media the same way big retailers do – with relentless, over-strategic, painfully obvious brand placements and advertising.

Instead, Salt Creek’s Instagram, for example, features thoughtful photos of their products and/or small team of carpenters crafting their furniture and decor. None of their posts feature quick links to purchase or excessive detail about sales and promotions, the way conventional retailers do. Their Facebook posts are simply linked to their Instagram images and feature no splashy text or aggressive self-promotion. Their website takes pride in explaining the value of each step that goes into the process of their products and why customers who truly understand will endure the long wait for their orders.

An example of the handcrafted products offered by small retailer Salt Creek Farmhouse.

More small retailers have been taking note and using social media for what it truly is meant to be – a way to digitally socialize with their customers, and leaving the business transactions to websites.

References:

https://www.splicetoday.com/sports/we-re-in-an-era-of-media-saturation

https://www.retailcustomerexperience.com/blogs/ways-small-retailers-can-thrive-in-a-world-of-retail-giants/