How the NBA identifies new markets and why you believe the NBA has chosen China

Sample Solution

The National Basketball Association (NBA) has been expanding its reach into new markets for many years. The league has identified a number of factors that it considers when identifying new markets, including:

• Population size and growth rate. The NBA is more likely to expand into markets with large populations and high growth rates. This is because these markets have the potential to generate a large number of fans and generate significant revenue.
• Media penetration. The NBA is more likely to expand into markets with high levels of media penetration. This is because these markets have the infrastructure in place to broadcast NBA games and promote the league to potential fans.
• Economic development. The NBA is more likely to expand into markets with strong economies. This is because these markets have the disposable income to support the high cost of attending NBA games and buying NBA merchandise.
• Cultural affinity for basketball. The NBA is more likely to expand into markets where basketball is already popular. This is because these markets have a pool of potential fans who are already familiar with the game and who are more likely to be interested in watching NBA games.

China meets all of these criteria. China has a population of over 1.4 billion people, and the country's economy is one of the fastest-growing in the world. Basketball is also very popular in China, and the NBA has a large following in the country. In addition to these factors, the NBA is also attracted to China because of the country's growing middle class. The Chinese middle class is expected to grow to over 400 million people by 2022, and these consumers have a lot of disposable income. This makes China a very attractive market for the NBA, as the league can sell tickets, merchandise, and other products to this growing group of consumers. The NBA has been very successful in China so far. The league has played regular-season games in China since 2004, and the NBA China office has been very active in promoting the league in the country. The NBA has also signed a number of lucrative sponsorship deals with Chinese companies, and the league's television ratings in China have been very strong. The NBA's success in China is a testament to the league's ability to identify and expand into new markets. The league has done a great job of building a strong following in China, and the NBA is well-positioned to continue to grow its business in the country in the years to come. Here are some additional reasons why the NBA has chosen China as an area in which to expand:

• China is the world's second-largest economy. This means that there is a large potential market for NBA products and services in China.
• Basketball is very popular in China. The Chinese Basketball Association (CBA) is the most popular professional basketball league in the world, and the NBA has a large following in China.
• The Chinese government is supportive of the NBA. The Chinese government has been very supportive of the NBA's efforts to expand into China. This has made it easier for the NBA to do business in China.

The NBA's expansion into China has been a success so far. The league has played regular-season games in China since 2004, and the NBA China office has been very active in promoting the league in the country. The NBA has also signed a number of lucrative sponsorship deals with Chinese companies, and the league's television ratings in China have been very strong. The NBA's success in China is a testament to the league's ability to identify and expand into new markets. The league has done a great job of building a strong following in China, and the NBA is well-positioned to continue to grow its business in the country in the years to come.