Researchers examining the overall variables that can impact the success of new businesses note that there are a host of variables that can impact overall success (Daniels, Radebaugh & Sullivan, 2004). In particular, market size, resources, regulations and procedures and risks must all be considered when determining whether or not to start a new business. With the realization that these variables are so important to business success, they must be examined when making a final decision with respect to staring a new business.In an effort to provide a comprehensive assessment of the viability of operating an online gaming business in China, this investigation considers the issues of market size, resources, regulations and procedures and risks. Specifically, the advantages and disadvantages of these issues will be examined to provide a more integral understanding of the challenges facing entrepreneurs in this area. In addition to examining the impact of these variables, the investigation also ties together the cultural, economic, political and legal issues that have been previously discussed. Through a synthesis of all of this research, it will be possible to make a formal recommendation about the viability of staring an online gaming business in the host country of China.
[...] In particular, organizations need to asses the materials that will be necessary to make the operation work and the overall availability of these resources in the target country. Organizations may be able to effectively run a business in a host country, but if the resources for startup are not present, the organization may find it difficult to get operations off the ground. With this in mind, the disadvantages and advantages of resources for online gaming in China must be explored. [...]
[...] Disadvantages In order to understand the resources necessary for operation of an online gaming operation in China, it is first helpful to consider the resources used by current companies operating in this market. According to a report published by Analysis International (2005) Online gaming operators are at the front end of the industrial chain, and mainly control the interactive interface and channels with users. [ ] With stiffer market competition in the forefront, leading companies' choices are to expand business contents and market potential in order to avoid the risk brought by low-tide industry period. [...]
[...] When the specific steps that are required for the organization to develop and implement a new gaming organization in China are reviewed overall, it is evident that there are a number of areas in which problems can occur. In the early stages of planning and development, it seems feasible to find a Chinese partner that can mitigate the risks associated with regulatory and cultural issues. Even though the organization will have to share its profits or eventually buy out the Chinese partner, the overall headway that can be made through having a Chinese partner justifies the cost. [...]
[...] Although various reports of the scandalous nature of online gaming and its debauchery can still be found in newspaper and magazine articles, more Chinese citizens have become open to this new technology. The relaxation of cultural standards has prompted the government to reduce gaming restrictions for adults. Rapid advances in technology have made access to capital in online gaming institutions a necessity. If online gaming organizations are to remain viable they will need to invest in new technologies. Even though the expansion of the online gaming industry has slowed technological innovation, this issue remains one of paramount concern for investors. [...]
[...] Conclusions Synthesizing the research that has been presented here and the research that has been previously presented with respect to the issue of cultural, economic, political and legal issues and the online gaming industry in China, there are a number of notable assertions that can be made about the industry overall. For instance, the current research demonstrates that: The online gaming industry in China is booming. The opportunity for making a profit in this market is quite substantial overall. As the industry grows, the Chinese government will reap the benefits of the tax and licensure fees that it charges. [...]
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