The paper 'A Major British Supermarket Chain Plans' is a perfect example of business coursework. Establishing a subsidiary in a new foreign market is a common business strategy followed by multinational corporations to expand their business and increase market share. However, it is one of the most expensive business expansion strategies. Since this type of business expansion involves huge investments, firms need to conduct deep country analysis and market opportunity analysis before deciding on the proposal. PESTLE analysis is a potential tool to evaluate the macro-environmental factors, whereas Porter’ s five forces model can comprehensively analyze the industry forces.
A major British supermarket chain plans to invest in Hong Kong as part of its global expansion initiatives in the current scenario. This paper will analyze the feasibility of this business proposal using PESTLE and Porter’ s five forces tools. The paper will also suggest whether it is good for the British supermarket chain to proceed with the plan. An Overview of Hong KongHong Kong, officially known as H. K, is a special administrative region located on the south coast of China. According to the Market Research Reports (n. d.), this region is well known for its deep natural harbor and expansive skyline.
Hong Kong is recognized as one of the world's densely populated regions with 426 square miles of land and over seven million people. The region’ s population comprises 93.6% ethnic Chinese and 6.4% other groups (Ibid). Hong Kong is one of the world’ s Alpha+ cities, with approximately 22.6 million foreign people visiting the country annually. The country has an average life expectancy of 83. Chinese government policies and interventions greatly influence the country’ s economic growth.
Chinadaily' (June 11, 2014) One country, two systems' policy in HK. Available at: http://usa.chinadaily.com.cn/epaper/2014-06/11/content_17579570.htm
City University of Hong Kong (April 2, 2015) Business Information for Hong Kong, Shanghai and Taiwan. Available at: http://libguides.library.cityu.edu.hk/content.php?pid=278195&sid=2294713
Food Export Association of the Midwest USA (n.d.) Hong Kong Market Profile. Available at: https://www.foodexport.org/Resources/CountryProfileDetail.cfm?ItemNumber=1014
GovHK (n.d.) Environmental Laws & Regulations. Available at: ttp://www.gov.hk/en/residents/environment/business/laws.htm
GovHK: Government structure (n.d.). Available at: http://www.gov.hk/en/about/govdirectory/govstructure.htm
Index Mundi (n.d.) Hong Kong Economy Profile 2014. Available at: http://www.indexmundi.com/hong_kong/economy_profile.html
Kaeding MP (2011) “Identity Formation in Taiwan and Hong Kong – How Much Difference, How Many Similarities?” In: Taiwanese Identity in the 21st Century: domestic, regional and global perspectives edited by Gunter Schubert and Jens Damm, (2011) London: Routledge, pp. 258-279.
Market research reports (n.d.). Hong Kong. Available at: http://www.marketresearchreports.com/countries/hong-kong
Robertson B (30 June, 2014) Hong Kong's competition regulator faces challenges in supermarket sector. South China Morning Post Companies. Available at: http://www.scmp.com/business/companies/article/1543169/hong-kongs-competition-regulator-faces-challenges-supermarket