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Table of Contents Executive Summary...............................................................................................................................2 Key Words.............................................................................................................................................2 Introduction:..................................................................................................................................2 Literature Review:.................................................................................................................................2 Research Objectives and Methodology:................................................................................................3 Limitations............................................................................................................................................3 Domestic strategies Adopted by the bank..............................................................................................4 Global Strategies adopted by the bank...................................................................................................4 External Factors affecting the globaslisation strategy of the bank and posing an entry barrier..............4 Primary Data Analysis...........................................................................................................................5 Reasons for customers preference.....................................................................................................5 Table 1: Showing the reasons that the official thinks are for the preference of the corporate customers of the HSBC bank to choose them................................................................................5 Chart 1 interpreting the table 1......................................................................................................5 Effectiveness of global versus domestic marketing strategy..............................................................5 Table 2: Showing the effectiveness of global versus domestic marketing strategy........................6 Graph 2: Showing the effectiveness of global versus domestic marketing strategy.......................6 External factors impacting the overall marketing strategy of the HSBC bank...................................6 Porter 5 forces Model Analysis..............................................................................................................6 Degree of competitive Rivalry...........................................................................................................7 Threat of new entrants to a market....................................................................................................8 Bargaining power of suppliers...........................................................................................................8 Bargaining power of customers.........................................................................................................8 Threat of substitute products..............................................................................................................8 Conclusion.............................................................................................................................................8 Recommendations.................................................................................................................................9 Questionnaire.......................................................................................................................................10 Works Cited.........................................................................................................................................11
Implication of the marketing research strategy of HSBC Bank on its global expansion strategy
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Executive Summary This study is conducted to study the implications of the marketing research strategy of HSBC Bank on its global expansion strategy. The central idea of this paper is to understand that how marketing research creates an impact on the expansion strategies of global banks. The reports of this study is substantiated by primary research method that gives an insight on what strategies do companies plan in order to target the customer segments of different countries having different regulatory framework.. The results of the study suggests that the HSBC needs to access all the market forces both internal and external before deciding to venture in a business globally. It is essential to determine the implications of these factors and research the market in order to determine your rivals and threats. It is recommended that HSBC bank can further utilise the developing markets of countries such as India and China to expand its marketing operations as they are viable growth markets. It should better focus on adaptations to minimise cultural barriers. Key Words Expansion and globalisation, strategies of entry in foreign markets, factors affecting the decision of entry, threats of entries, competitive analysis, Introduction: The HSBC bank is one of the leading banking and financial service provider globally. It is a British Multinational company has its headquarters in London. First branches of the bank were opened in Shanghai, Hong Kong. The bank provides many financial services.HSBC now has global presence operating in about 80 countries having 6,600 offices worldwide. It has its global presence in Africa, Europe, Asia, North and South America. Talking about the global expansion strategy of HSBC, the bank has always used smart strategic plans, opportunist moves and innovative IT as a tool to gain competitive advantage. It has more than 6000 IT staff around the globe. John Strickland CEO of Hong Kong Bank HSBC planned to place the Bank in the business community as the largest corporation. Literature Review: Literature review Businesses adopt the strategy of being global because of many internal and external factors that may be to make profit from foreign markets, growth of the business, creating a reputation of being international business and gain competitive advantage. The changing international environment also encourages the global operations of companies and also the state of the host country such as political and economic stability, government policies serve as an impulse to venture these markets. (Harrison, 2011) It is mandatory for the banking firms to have technological up gradation in order to manage its operation globally so that the management of cash flow amongst various continents takes place that have different currencies (Ken & Tuunainen, (n.d.)). To understand the foreign market strategies of entry of a firm it is required to analyze the particular firm and the operations it deals in (Barney, 1991). The global strategy of a firm should be oriented to minimise the cost of transaction. The regulations and rules of operating business in the economy and markets of the country where the firm enters is also significant in determining what strategies will the firm adopt (Wright, 2005). Transaction costs are affected by the economic conditions of the host countries and factors such as opportunism and regulatory framework. It is interesting to study the adaptations changes and strategy Call Us: (+61) 450 214 312,+44-7497786317 www.cheapassignmenthelp.com Email:cheaponlineassignmenthelp@gmail.com
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any global firm adapts and plans while entering a foreign market (Brooks, Weatherston, & Wilkinson, (n.d)). As there are many differences in the regulatory, legal, political and social conditions of the host company the firm’s needs to devise strategies to enter a new economy. The strategies are influenced and affected by the status of development in the economy of the host country and the need of resources that are produced locally (Kotler & Keller, 2009). Available literature focuses on theoretical aspects to exemplify the adaptations firms require for global marketing. Uppsala International Model can be used to determine the strategies of entry of firms in foreign market. This theory suggests that in order to enter foreign markets the firms first intensify their operations there. This is done by the firms gaining experience and expertise in the markets of their home country before deciding to enter foreign domain. Firms first begin their foreign operations by choosing countries that are similar to their home country in respect of culture and located at close distances. The operations begin by using conventional exports then gradually shift to more intensive marketing operations after stabilizing their hold such as sales etc (Johanson & Vahlne, 2009). The four topics which would be discussed in the present literature review pertaining to research includes the factors which are having impact on the market entry mode for the international organizations, importance for the internal factors to the organization, role & type of external factors and market opportunities available for HSBC bank in international market in current market scenario. I believe both internal and external factors are having key role in order to decide over the market entry for an organization in international markets. There are several factors which would have high degree of impact on the market entry strategies adopted by the particular organizations. HSBC has several opportunities available in the international markets which need to be explored so as to expand business in these markets. Topic 1.1- Impact of factors on market entry for the international organizations Hypothesis: International market entry modes have high significance for the market entry of a new firm in the international markets. Literature present on the entry model for the international organizations covers wide range of entry strategies for the organizations to establish their presence in international markets such as total product offer, diverse entry modes and maturity models (Berger et al, 2000). Existing literature on the market entry for the new organizations was more products based rather than market led or focusing on the other areas of business organizations such as strategic move. Market entry for the organization was mainly affected by the three products based views and these were new product, deleting existing product and modifying new product. The first strategy would introduce a new product in market and entry would be made through innovation in either technology or product itself (Baradwaj et al, 1992). This innovation would attract the target consumer segment for company and would develop way to enter in new market with high effectiveness. Second product based view would be deletion of existing products from the market. Sometimes, the existing product is not performing well and consumers are looking for the change and any such change in the product by company would attract the consumer’s attention. Final product based strategy for entering in the new markets would be to make modifications in the new product. The newly launched product sometime may not suit the customer taste and modification in the new product as per customer requirement would seek their attention as consumers would take it as positive move and such products would have high chances of adoption from the consumers (Buckley and Casson, 1976). Hence, looking at the three products based models of market entry it can be analyzed that this model of market entry works on the basis of market maturity in order to enter in the markets. It is the underlying assumption that whenever markets reach maturity there is requirement for the new entry of a firm. So a firm should make the market entry decision looking into mind the market maturity for the particular product or service. There are Call Us: (+61) 450 214 312,+44-7497786317 Email:cheaponlineassignmenthelp@gmail.com
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basically two models which would be affecting the market entry and these would be water fall model and shower model. Waterfall model would disseminate the product by advancing it from the highly developed markets to the less developed markets. Shower model of market entry would be using the three product based approach for market entry in order to gain high degree of market entry wherein all three products would be targeted at same time (Greve, 2003). So both these models depicts that internationalization of the market for a particular product or service signifies that shorter product life cycle is the major attribute for the international markets. A product in the international market is expected to sustain for the shorter time period and once the maturity is attained for the particular product the market entry will take place with new product in market, deletion of existing product or through modifications of the new product in the market. The market entry models discussed in the literature such as waterfall approach or shower models seems applicable for the old markets but in the present age markets which are highly dynamic these approaches may not suit well. So the existing literature has limitation as present age markets may not only work on the basis of product driven entry but other entry strategies may also be the part of the overall market entry mode for any organization. Hence the hypothesis stated above does not holds true as the factors impacting the market entry mode does not have high significance in the present age markets. Topic 1.2 Internal factors affecting international entry Hypothesis: Internal factors such as organizational assets, organizational flexibility, processes and procedure have high degree of importance in deciding organizational success in new market entry for international markets Internal factors for any organizations would include SWOT analysis conducted for the organizations in order to understand the strength and weakness which a particular organizations contains. These strength and weakness areas have high degree of correlation in order to decide upon the market entry mode for any organization and to explore the opportunities present for the business organizations in the international markets. Financial position of the organization is prime factor which can impact upon the market entry of the organization in new markets as a firm with strong financial position would have several alternatives such as joint venture, merger, acquisition or wholly owned subsidiary depending upon the strategic decision taken by the organization to enter into the new markets (Hackethal, 2001). Brand reputation of the organization would be another key element which would be a deciding factor for organization so as to enter into the new markets. A reputed and known brand would have to make lesser efforts in order to get entry into the new markets while an established brand would enter into new markets with high ease. Further, organizational flexibility and assets such as technology, human resource and organizational processes would be deciding factors so as to enter in the new markets (Hensel, 2003). A flexible organization which can replicate the processes and procedure in the new markets with high ease would have higher chances for success in the new markets as compared with the rigid organization. Similarly, organizations which have assets in form of proven technology and human resource with high level of skill set would be useful in order to replicate their processes in new markets. Looking into the existing literature for exploring internal factors impacting the market entry for any organization it can be said that these factors have high relevance in order to decide upon the market entry mode for any organization (Hill et al, 1990). Further the factors pointed in the present literature such as processes, procedure and key assets such as human resource, financial resource and technology would prove of high importance for the organization in order to take entry in the new markets. So overall, present literature has advantage in terms of practical implementation in present age and therefore offering high importance for the internal factors in deciding success of an Call Us: (+61) 450 214 312,+44-7497786317 Email:cheaponlineassignmenthelp@gmail.com
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organization. In conclusion it can be stated that internal factors are vital for the organization and any market entry strategy should be devised by properly analyzing the internal strengths which an organization has, so that these strengths can be used for making successes entry in the new international markets (Hoskisson et al, 2000). Hypothesis framed in the present context can be adopted basis the fact that factors outlined above such as internal processes & procedure, organizational assets and organizational flexibility is of high importance for the organization in deciding success for the organization. Topic 1.3- External factors impacting the market entry Hypothesis: There is high level of importance for the external factors in order to decide upon the market entry decision and mode for any organization in international markets Business organizations are facing two key factors which may have significant impact on the business strategy for the organization and these two key factors are internal and external. Internal factors have been discussed earlier and now present research would focus upon the external factors which can impact the entry of business organizations in new markets (Ingram & Silverman, 2002). Present literature highlights two key barriers for the market entry which are present in the external markets and these two entry barriers are deciding factors for the new organizations making entry in the international markets. The first key external factor affecting the market entry for the organizations in international market is regulations pertaining to the international markets. Existing business organizations in the domestic markets would face the strategic dilemma as at one side these business organizations would tend to minimize their risk for entering into new markets by adopting gradual ways and taking lesser risk by establishing stable processes (Khanna & Palepu, 2000). While at other side these business organizations are forced to make fast entry and develop flexible policies so as to suit the international business regulations and these regulations pertaining to the international markets would enhance the overall risk for these business organizations. Hence risk would be much higher as compared with the theoretical model wherein lesser risk is proposed while entering into the international markets. Cultural barrier is the second most important external factor impacting the business organizations entering new markets. Culture of an organization would be of high importance and it decides upon the working style and processes adopted in the organization. It has been observed that while entering in the new markets organizations have contrasting culture which sometimes becomes major hurdle to expand the business in new markets. It is important that business organizations manage a culture which can suit the new markets and entry in the new markets become easy (Peek et al, 1999). Looking into the literature which exists pertaining to the present topic, it can be said there are positives factors pertaining to current literature as culture barrier can be considered as the major barrier for new market entry for present age business organizations. Further literature presented above offer strong rationale for considering these two factors as major determinant for the international market entries. Concluding the present literature presented it can be said that external factors have high importance for the business organizations to make their entry in the new markets with special focus towards international markets. Business regulations faced in the international markets would offer high risk to the business organization as noncompliance to these regulations may lead to failure of the business organizations in these markets irrespective of the fact that the business organization has high brand reputation in other markets (Roll, 1986). Similarly, adoption of international market culture would be important for the business organization in order to ensure that domestic culture and international market culture can mingle well in order to develop a culture which is suitable for the success of business organization. Hypothesis framed in the present research topic can be adopted as it holds true. External factors can be considered of high importance in order to ensure success for the business organizations entering into international markets. Call Us: (+61) 450 214 312,+44-7497786317 Email:cheaponlineassignmenthelp@gmail.com
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Topic 1.4- Opportunities available for HSBC in international markets Hypothesis: HSBC has several opportunities available in the international markets such as the micro financing and entry into the North American markets The present research topic would explore the market opportunities which are presently confronted by HSBC with special focus on the micro financing aspect and entry of HSBC in North American markets. HSBC has expertise in order to solve the transactional issues faced by the banking system which makes it suitable for HSBC to enter into micro financing segment. Further several potential markets wherein HSBC have plans to enter into coming future are also highly suitable for micro financing. Hence it is advisable for HSBC to get into the micro financing division to make product or service expansion and obtain higher market share in the total banking segment in the markets wherein HSBC has its presence and locations wherein HSBC is new in the market (Seth et al, 2000). Market entry for the HSBC has been suggested looking into the increasing scope of micro financing and growth which has been observed by other banking and non banking organizations have observed in recent time. Entry in the North America was planned by HSBC in its initial move wherein entry was planned through acquisition of retail bank in North America and UK (Williamson, 1985). Entry into locations like North America is not only important from the market expansion motive but it is important for an international brand to present in the major markets such as North America and UK. Entry into North America would open door for HSBC for international collaboration and would initiate a new age of banking revolution wherein HSBC would be able to compete with its rivals not only in North America but also in other geographic locations wherein at present HSBC does not have high market share (Tschoegl, 2001). Literature present on the market opportunities for HSBC in terms of getting into micro financing division and entry into North America offers strong opportunities having high chances for success towards market expansion and product expansion. These new opportunities can help HSBC to emerge as international brand by making their presence in international markets. Hence overall new market opportunities are present for HSBC and the organization need to identify these opportunities so as to expand its products & services outside Asia (Tsui, 2004). Literature presented is strong from the practical implication aspect as well as rationale offered for the acceptance of these international opportunities for HSBC. Hypothesis framed in the present research topic should be adopted as it holds true. Market opportunities are available for the HSBC in terms of micro financing as well as expansion in the new markets outside Asia such as North America and UK. Conclusion Literature review in present research offers view on the four key topics which are impact of factors on market entry mode, impact of internal factors on market entry, impact of external factors on market entry and new market opportunities for HSBC. It has been observed that factors impacting market entry mode with several approaches such as waterfall approach and shower approach may not hold true in the current business markets which are highly dynamic in nature. Concept of mature market for the basis of new market entry does not holds true and thus the first hypothesis developed can be rejected. Second research topic highlights importance of internal factors in order to establish market entry for the business organizations in international markets. It has been established that internal factors such as organizational flexibility, organizational resources and processes would be key in order to ensure success of business organizations in the international markets. It is advisable to analyze internal factors which a business organization has in order to drive organization towards success. Hypothesis developed for second research topic can be accepted as it showcases the importance of internal factors for market entry. Third research topic in the present research talks about external factors impacting business entry mode in new markets. It has been observed that two major factors i.e. Call Us: (+61) 450 214 312,+44-7497786317 Email:cheaponlineassignmenthelp@gmail.com
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cultural barriers and regulations would determine success of business organizations in new markets. Hypothesis framed in third research topic has been accepted as external factors highlight high degree of importance in deciding market entry for the business organizations. Finally fourth hypothesis framed has also been accepted as it talks about market opportunities for HSBC such as entering into micro financing and North American markets. These opportunities would help HSBC to establish their market expansion and product expansion. Research Objectives and Methodology: This is an interpretive study involving HSBC and assessing” The Implication of the marketing research strategy of HSBC Bank on its global expansion strategy” The objective is to find out;
If the concept of global versus domestic marketing strategies approach adopted by HSBC Bank would be helpful for the global expansion of the company Whether there is a significant impact of external factors on the marketing strategy adopted by HSBC into different markets
Primary research and secondary data are used as research tools in this study to determine the impact of external forces on marketing strategy of organisations. Qualitative and quantitative data has been used. The process of gathering relevant data is by documents and publications, annual reports etc. It includes interview with HSBC executives, and documents and data collection about the rival firms of HSBC. Questionnaire - the questionnaire prepared for this study is divided in to the following parts;
Follow up by personal interviews – We have interviewed 15 of the officials of HSBC in this process by the survey method and sending them questionnaire via emails and telephonic interviews to conduct the study
Limitations:
The primary data will have little significance on the analysis Primary data collection cannot be relied upon as it was not feasible to collect data from the global marketer of HSBC bank, so we have interviewed few customers by the survey method and sending them questionnaire via emails to conduct the study The primary data collection has been limited only in Australia.
Domestic strategies Adopted by the bank Robust risk management and aim to maintain business sustainability globally Channelizing the need of international trade and flow of capital and entering viable markets Using their advantage of having global reach to serve clients globally as and when they grow from small organisations to big multinational entities Strategies to have an access to the funding in local retail and their international products that enables them to provide distinct, value added and profitable services to their clients Strategies to financially connect the economies that are growing rapidly (HSBC Holdings plc, 2012) Call Us: (+61) 450 214 312,+44-7497786317 Email:cheaponlineassignmenthelp@gmail.com
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Global Strategies adopted by the bank HSBC is a leading service provider of retail banking and Wealth Management to over 54 million people around the globe. They focus on investing in priority markets that have high growth They offer financial products and services to companies and government bodies globally. They are financial service provider for small and large businesses and enables their growth and financial development They also have private clients globally that have high- net worth and the bank has strategies to enable them manage their wealth resources. They provide these clients financial footprints, they have sustained relationship with high net with families for generations (HSBC Holdings plc, 2012)
The figure shows at on the year 2009 the Global Banking and Markets of HSBC reached a new base level between USD 9 to 10 Bn. The bank’s global strategies shows strong emphasis on speedy growth by an improvement on their client coverage, increase in the strength of their core products and developing equities, better penetration into broader base of customers, achievement of cost saving by technology trading platforms. (Stuart, 2011) External Factors affecting the globaslisation strategy of the bank and posing an entry barrier The external factors that affect the globaslisation strategy of the bank pose an entry barrier to them and they are;
The political landscape of many host countries are changing this has happened after the implodsion of the mortgage market of the United States Financial stabiltiy of the countries in decides to venture also affects the marketing operations of the bank New regulations in the bankiing business that are more stringent on the areas suchas leverage, requirement of liqiuidity, corporate governance (Parker & Giles, 2009) Global recession, political legal and regulatory uncertqinities affect the global operations of HSBC significantly.
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The proposed principles by the International Accounting Board stating that financial institutions need to value their investments as holdings for long term or a trading position. This would enable valuing of more investments at market prices and improvement of tranperency and more volatile earnings (Jennifer, 2009) Regulations: It is always a state of concern if you are entering foreign markets and your home coutry is under high regulatory control. It is therefor recommended to have a staged model to expand in international domain which would help regulating and minimising risks. HSBC bank has to dela with about more than 300 regulators and government compliance costs that includes high costs of IT.
Primary Data Analysis Reasons for customers preference Table 1: Showing the reasons that the official thinks are for the preference of the corporate customers of the HSBC bank to choose them. Reason of preference for corporate No of participants choosing the checklist option customers Vast network of international connectivity 9 User interface is very convenient and easy 12 Ease in international business 10 Chart 1 interpreting the table 1
The bank has global expertise of operating in over 63 companies which gives them strategic and situational advantage to help the corporate clients to make international business easier for them. Other reasons for the global corporate clients choosing the bank were; The bank provides dedicated relationship manager to its corporate clients It provides free online assistance to its global clients as it has a knowledge centre and enewsletters The bank has already an established and trust worthy name in the market It offers customised and specialist products and services to their global corporate clients Effectiveness of global versus domestic marketing strategy 12 of the HSBC official interviewed rated the firm 5, whereas 4 of them rated 2 and 1 of them rated 3.Ratings were based on a scale of 1-5, 5 being the highest. Call Us: (+61) 450 214 312,+44-7497786317 Email:cheaponlineassignmenthelp@gmail.com
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Table 2: Showing the effectiveness of global versus domestic marketing strategy Effectiveness of global vs. domestic marketing strategy No of participants 5 12 4 2 3 1 2 0 1 0 Graph 2: Showing the effectiveness of global versus domestic marketing strategy
External factors impacting the overall marketing strategy of the HSBC bank The officials suggested that the external factors that impact the overall marketing strategy of the HSBC bank are,
They scan the economies that seem to pose a positive entry zone for them , they select the developing countries to determine their expansion as there is increase of income in them They scan the financial markets of the world They analyse what are the global competition and the possible rival in the host country The social and political forces operating in the host country
13 of the officials rated the significance of the external factors as rated 5 showing high dependence of the bank while entering foreign markets. They feel China and India will pose the greatest marketing opportunities for HSBC in the comi8ng time as the increase in income, more aging population and economic development and more employment opportunities in these developing countries will result in long banking relationship and the capacity and knowledge to engage in banking relationships.
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Porter
5
forces
Model
Analysis
This model was developed by Michael E porter in the year 1979.This theory suggests that five forces are responsible to describe the intensity of competition and the attractiveness of the market. The analysis based on Porter 5 forces model will enable us to understand that how external factors affect companies.
Degree of competitive Rivalry This determines how many competitors exist in the market and what their strengths are. If the competitors offer products and services that are undifferentiated this will lead to a reduction in the attractiveness of the market. (CGMA, 2014) HSBC imp0lements effective strategies to ensure that maintaqins a stable position and aims to achieve market leadership in global markets. Marketing Strategies of HSBC Bank
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HSBC developed the ideas of Hexagon top reduce the threat of existing competition by Citicorp and Chase Manhattan that were providing corporate clients the services of mainframe computers in order to access transactions with in the country and check and reconcile account data for the management of global finances. The market need was a system to manage cash worldwide to cater this need and drive away the threat of competition HSBC developed the ‘Hexagon System ‘that delivered banking system around the world easily accessed by the finance managers of the companies via their computer systems. The hexagon system thus was added value to the bank and enabled them capture the share of market by meeting and surpassing the level of services offered by the competitors and driving away existing competition. (Ken & Tuunainen) Threat of new entrants to a market New entrants are always attracted towards domestic and global markets which are profitable it is always advantageous to maintain durable barriers to entry that in the form of economies of scale, patents , trade secrets etc (CGMA, 2014). The high profits that the banking industry reaps is acting as an impulse for many buisinesses to enter the banking industry. Tesco, Sainsbury’s being few of them pose the threat of new entrant s risk to HSBC. The globa lmarketing strategy of HSBC uses strong positioining and branding of the bank this will enable it to survive the threat. Bargaining power of suppliers Suppliers can easily act as determinants of price. The lesser diversification of suppliers you have more the power of bargaining is vested in them. The unique feature of product, the market strength of suppliers and the cost of opting out of one supplier and switching to another one determines this aspect (CGMA, 2014). HSBC requires to keep attrascting efficient sales persons that can provide the industry high degree of customer satisfaction by premium customer services Bargaining power of customers The number of buyers for your product existing in the market, the value of individual buyers to the firm, etc enables the buyers to have power to control pricing. Lesser the buyer the firm has more is the dependence on them (CGMA, 2014).HSBC requires to keep the customers bargaining power at its advantage by offering them competitive and better prices and giving them quality services. Threat of substitute products In response to an increase in price customers tend to switch to close substitute in the market. (CGMA, 2014).Banking industry has become very relotionised and there is a constant threat to HSBC global Call Us: (+61) 450 214 312,+44-7497786317 Email:cheaponlineassignmenthelp@gmail.com
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business by these new products and services of the competitors.with technological advancements banks have the option to cnetralise their operations. HSBC Is overcoming this threat by giving superior products and having a strategy to imporve continuously. The centralised security perparation of HSBC for residential mortgagesis one such product that it has.Where all the necessary documentation is sent to one location.The coslty capital write downs is a major issue the bank is facing with its entry to the3 motgage prime markets in US posing a serious threat from substitue products offered by new entrants suchas Tesco. Conclusion A well planned strategic globalisation always has positive impact on the firm. The trend of companies to be international has increased its international financial operations too which is an advantage for leading banks such as HSBC to enter foreign markets. The firms while entering any foreign market needs to devise its internal as well as external strategies to gain maximum competitive advantage. This study has indicated how global bank HSBC channelizes the opportunities in high growth market to its advantage. The bank has significantly used their advantage of having global reach to serve clients globally. It is essential to access all the threats and plan to gain advantageous position by differentiating the business operations the Hexagon System and the unique domestic mortgage process of HSBC is enabling it to have competitive advantage.HSBC being the market leader in the banking sector uses different marketing strategies to maintain its position of being the world leader. The Analysis has shown that bank has channelized the competition to its advantage to meet the situations of the global markets.
Recommendations
HSBC should focus more on investment banking There is a need to understand the entry barriers in countries such as Russia HCBC shoud aim to develop an extensive global brand and network, which would be prohibitively expensive to replicate giving it advantage over threat of susbtitue products China and India being develooping economies can be biggest market opportunities for financial services in the coming time Inorder to minimise the entry barriers and specially the external entry barriers the firm must resort to joint ventures, acquisitions and mergers to gain a strong hold world wide The bank can achieve better market position by having a better strategy to develop products and allocate resources effectively also determining better rewards and incentives for staff to retain focused and efficient employee base which is very essential to gain competitve advantage .
Questionnaire 1. Why do you think your customers prefer HSBC bank for their internal as well as global operations □ it has a vast network of international connectivity relevant to businesses Call Us: (+61) 450 214 312,+44-7497786317 Email:cheaponlineassignmenthelp@gmail.com
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□ the user interface is very convenient and easy □ Ease in international business operations
2. Are there any other reasons, please mention. 3. How would you rate the effectiveness of global versus domestic marketing strategies for the expansion of HSBC bank 12345 4. What are the external factors that impacts the overall marketing strategy of the bank
5. How would you rate the significance of impact of external factors on marketing strategy adopted by HSBC into different markets 12345 6. What are the prime entry barriers the bank experiences while entering the foreign markets □Regulatory framework □Cultural Barriers □Threat of the existing competition □Threat of substitute □Bargaining power of suppliers 7. What are the factors considered by the HSBC bank before choosing a foreign market □Opportunities to make profit □ Growth opportunities □State of stability of political and economic environment of host country □Supportive policies of the government of the host country □Cost reduction 8. Are there any other factors please mention 9. Which countries do you see as the most profitable ventures to increase global operations? 10. Why do you feel the countries mentioned in the choice above (question 9) should be preferable for expansion? Works Cited 1. Baradwaj, B.G., Dubofsky, D., & Fraser, D.R. (1992). “Bidder Returns in Interstate and Intrastate Bank Acquisitions,” Journal of Financial Services Research, Vol. 5, No. 3, pp. 26173 2. Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management 17 , 99-120. 3. Brooks, I., Weatherston, J., & Wilkinson, G. ((n.d)). Globalisation, challenges and changes. Retrieved September 8, 2014, from Pearson Publishing Website: Call Us: (+61) 450 214 312,+44-7497786317 Email:cheaponlineassignmenthelp@gmail.com
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Call Us: (+61) 450 214 312,+44-7497786317
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