Name:
Course:
Institution:
Tutor:
Date:
Entry of Fish & Co Restaurant to Hong Kong Market
Reasons for Market Expansion
Internal Analysis
International Brand Recognition
Fish & Co. has not only many branches in Singapore alone but it also has branches in other parts of the world such as Malaysia, Philippines, Indonesia and the Middle East (Fish & Co., 2010). Having expanded this much, the company has greater opportunities of expanding further in other parts of the world such as Hong Kong, South Korea and Japan. A well-known brand sells faster than a new one. This is so especially if the brand has positively maintained itself in the market. Statistics show that Hong Kong exports an average of 12120 tons of fish yearly (Department of Statistics, 2011). Consequently, a quite number of people especially those living at the shores of the rivers have it as a staple food. It is also a common meal in many of the local restaurants. Fish is also a common meal in Japan and South Korea. Penetrating these countries will not be hard.
Local Competition
The restaurant already has seventeen branches in Singapore alone. If it increases branches further, it will saturate and not make as much profits as venturing in other markets in other countries. There are approximately 7.1 million people in Hong Kong (Encyclopedia of Nations, 2011). This is approximately two million people more than those in Singapore are. Venturing in this place would be venturing into a larger market and more opportunities. As indicated, the population is a fish eating population. In Singapore such restaurants as Teochew City Seafood, Manhattan, Quayside, Jumbo No Signboard, Palm Beach, amongst others, put up a lot of competition for the restaurant (Metropalsia, Singapore, 2011),. This leaves the company with the option of venturing in the outside market in order to increase it chances of making profits and surviving in the competitive market of the food service. Although there many restaurant in Hong Kong, Japan and even South Korea, the market is larger and the people eat fish more frequently those in Singapore.
External Analysis
Growth Opportunities Overseas
It is believed that the larger the market, the higher the chances of survival. As indicated earlier, the population in Hong Kong is much larger that that of Singapore. The market in Hong Kong is also welcoming as people are more fish eaters there. Hong is largely involved in fish exporting therefore there will be no problem of acquiring the product. Since Hong Kong is part of China, the company’s chances of expanding to other parts of China will also be increased. Expanding the company to such countries will help the growth of the restaurant as a company and as individuals working in the restaurant (Chung & Hong KongPolytechnicUniversity, 2003).
Government’s Support
The government in Singapore greatly encourages the companies in the country to venture in other counties such as possible. They have very few trade barriers. The government also has an international enterprise where it provides the companies with guidance, tax incentives, loans and grants, international training courses amongst others (Risk Watch, 2003). Through such kind of support, the risk involved in overseas investing is greatly reduced.
The best place to locate the business is in Hong KongIsland. This is because it is the CapitalCity, Hong Kong is. A lot activities including take place here and it is populous. Since it is an Island, accessing fish will not be much of a challenge therefore eliminating product-acquiring challenges. Fish is also cheaper here and people are more acquainted to fish and fish products in this region. One of the basic relaxing activities in Hong Kong is meeting at a central place and eating. If the restaurant keeps their high standards of serving quality and tasty fish, then families will definitely gather in these places.
Target analysis
Hong Kong has a population of approximately 7.1 million people. Although there are many people, they are engaged in diverse activities. They are engaged in the trading and businesses since it is the capital city of China. However, those in near waters like the Hong KongIsland are engaged in fishing. A college student probably gets an average yearly salary of 120,000 HKD. Those working in the banking or finance industries earn an average of 40,000 HKD per month. In general, an average earner in this city gets an average annul salary of 250,000 HKD (Average Salary Survey, 2011. Most people living in Hong Kong are old. Seventy-one percent of the population is between the ages of 15 and 64 years old. Eighteen percent of the population constitutes people (Encuclopedia of Nations, 2011).
Most people in Hong Kong, as in the rest of China, are involved in healthy eating habits due to their culture. They eat a lot of seafood, which is mostly healthy. However, they have a bad habit of smoking, which is well known to be harmful to one’s health. It is therefore essential for them to engage in good eating habits in order to slow down the damage brought by smoking (Training Management Corporation & Princeton, 2000). Both communities are similar in different ways. They both engage in healthy eating habits and they are as equally like seafood ((Training Management Corporation & Princeton, 2000). Due to the limited income, the people buy the essentials. It is therefore important that Fish & Co. make the food available by pricing the food in a consumer friendly manner.
References
Average Salary Survey, (March 2011). Average Salary in Hong Kong. Averagesalarysurvey 2010/2011. Retrieved from http://www.averagesalarysurvey.com/article/average-salary-in-hong-kong/19111914/income.aspx
Burrow, J., & Bosiljevac, J. (2009). Marketing. Mason, OH: South-Western Cengage Learning.
Chung, K. M., & Hong KongPolytechnicUniversity. (2003). Factors affecting tip size in restaurants: A study of Chinese restaurants in Hong Kong. Hong Kong: Graduate School of Business, The Hong KongPolytechnicUniversity.
Department of Statistics Singapore, Time Series on Population (Mid-Year Estimates). Retrieved from
Encyclopedia of Nations (2011). Hong Kong. Encyclopedia of Nations. Retrieved from http://www.nationsencyclopedia.com/economies/Asia-and-the-Pacific/Hong-Kong.html
Fish & Co, (2010). Store Locations. Fish & Co. Retrieved from
Metropolasia, Singapore, (2011). The best seafood Restaurants in Singapore. Retrieved from http://www.metropolasia.com/Singapore/best-restaurants-in-Singapore/Seafood
RISK WATCH – Ensuring the success of business expansion strategies. (January 01, 2008). The Internal Auditor : Journal of the Institute of Internal Auditors, 65, 1, 71.
Training Management Corporation., & Princeton Training Press. (2000). Doing business in Hong Kong. Princeton, N.J: Training Management Corp.
Training Management Corporation., & Princeton Training Press. (2000). Doing business in Singapore. Princeton, N.J: Training Management Corp.
Use the order calculator below and get started! Contact our live support team for any assistance or inquiry.
[order_calculator]