Free

Peter roberts watches expanding in HONG KONG - Essay Example

Comments (0) Cite this document
Summary
Among the most exported items in this category include the battery-powered watches which accounts for over 56% of the exports (HKTDC…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.3% of users find it useful
Peter roberts watches expanding in HONG KONG
Read TextPreview

Extract of sample "Peter roberts watches expanding in HONG KONG"

Hong Kong Watch and Clock Industry Overview Hong Kong remains one of the leading exporters of watches and clocks around the world, being only second to Switzerland and ahead of Japan. Among the most exported items in this category include the battery-powered watches which accounts for over 56% of the exports (HKTDC Research, 2015). In addition, Hong Kong also exports various components of watches including the cases and watch straps just to mention a few. This paper seeks to analyse the external/Macro-environment and Internal/Microenvironment for a possible entry of Peter Roberts watches.
External/Macro-Environment
This analysis will use the PESTEL framework in describing the external/macro environment of Hong Kong. PESTEL analysis (Porter, 1980) focuses on the external forces that play a key in role in a firm’s ability to produce and sell.
Political Analysis for Peter Roberts Watches
The political analysis relates to the political context of a country and governments often use them to influence the business operations. According to (Porter, 1980), these factors include trading policy; international relations and taxation policy just to mention a few. Hong Kong is relative a stable and thus offers an excellent environment for international investors to conduct business. However, the imposition of 30% tax on international companies while letting local companies free could pose challenges to Peter Roberts watches in terms of competition (HKTDC Research, 2015).
Economic Analysis for Peter Roberts Watches
Porter (1985) posits that economic factors have a significant effect on business and, in particular, the national economy where the business is located. The economic factors influence business largely in terms of income, interest rates, and general demand. Kotler et al. (2013) argues that high-interest rates discourage investment whereas high inflation affects employee wages. Hong Kong is a rising, stable economy with low inflation rates; consequently, this will be more appealing to Peter Roberts Watches to conduct business.
Social Analysis for Peter Roberts Watches
Porter (1985) describes social factors as encompassing factors such as population growth rates, social attitudes, and social demographics among others. The significance of these factors is in their ability to affect the demand for a firm’s goods. Hong Kong’s population has a significantly large proportion of its population composed of the Y-generation (Lenway & Murtha, 1994). This generation is fashion conscious and has a high affinity for trendy products. Peter Roberts Watches firm’s ability to produce a variety of watches including fashion will ultimately appeal to this population hence market (Peter Roberts, 2015).
Technological Analysis for Peter Roberts Watches
Technological factors are critical in increasing the pace of product manufacture and cost reduction. Hong Kong is fast becoming a technology-driven country following its relatively well-developed technological infrastructure. Peter Roberts Watches is a highly innovative company with unique brands of watches such as the unique chronograph with five central hands (Peter Roberts, 2015). The conducive technological infrastructure in Hong Kong will provide an incentive to Peter Roberts Watches to produce even higher quality watches and hence remain competitive in the market (Teece & Shuen, 1997).
Environmental Analysis
The environment/ecology plays a critical role in business, and this includes the various aspects such as climate patterns, weather and temperature changes. Hong Kong has a great climate with normal range temperatures. As a result, these may not interfere with the raw materials for the production of watches. Peter Roberts Watches, therefore, has a greater chance of establishing itself in Hong Kong.
Legal Analysis for Peter Roberts Watches
HKTDC Research (2015) observes that legal factors are a country’s legislations, which directly or indirectly affect business. The factors include employment law, the anti-trust law, and advertising standards among others. Hong Kong has its set of rules that international companies have to comply with when conducting their business in the country. This might be quite challenging for Peter Roberts Watches especially in getting right all the sets of regulations in Hong Kong.
Internal/ Micro-Environment Analysis
In conducting the internal analysis for Peter Roberts Watches, this paper will use the SWOT framework. SWOT framework simply assists a firm’s managers to understand their organization and the market. The framework contrasts the organization’s “Strengths and Weaknesses” with “Opportunities and Threats” in the market (Kotler et al. 2013).
Strengths
Peter Roberts Watches has established itself as a strong and appealing brand following its ability to produce high-quality watches. The ability of Peter Roberts Watches to be highly innovative and produce unique watches offers the company a competitive advantage (Barney, 1995). The company also has a highly competent team with excellent marketing strategies; consequently, this will be critical in attracting customers in Hong Kong.
Weaknesses
Although Peter Roberts watches produces excellent and high-quality watches, the company’s high prices will be a limiting factor. The fact that the company has a low global presence may limit its market (Peter Roberts, 2015). Lastly, while Peter Roberts Watches has positioned itself in producing watches for the high-end social class. The strategy may play to its disadvantage in Hong Kong where a majority of the people are middle-income earners (HKTDC Research, 2015).
Opportunities
Peter Roberts Watches are of significantly high quality and are made of high-quality materials. This will leverage the company’s products against the local brands. The company’s decision to go international will provide the company with enormous opportunities to establish its brand and target the youth market segment across the globe (Peter Roberts, 2015). The fact that the company has diversified its products to include sports watches, fashion, and corporate watches present a massive opportunity to sell its products (Peter Roberts, 2015).
Threats
Peter Roberts watches have a major hurdle to overcome in Hong Kong, and that is the local brands. Firstly, the local brands have first movers’ advantages hence it will be quite difficult for Peter Roberts watches to gain ground (Barney, 1995). Secondly, the local brands have a 30% tax exemption of which Peter Roberts watches will have to pay; consequently; this will disadvantage the company (HKTDC Research, 2015). In addition, local brands such as Casio, Rado, and Titan have created a niche market in Hong Kong; consequently, this will present difficulties for Peter Roberts Watches’ acceptance.
Conclusion
Hong Kong provides an excellent environment for international companies to establish. Peter Roberts Watches has an opportunity to enter the Hong Kong foreign market; though he faced stiff competition that has established niches for themselves. In order to succeed, Peter Watches may consider using a disruptive innovative strategy combined with the low-cost model.
References
Barney, J.B., 1995. Looking inside for competitive advantage” [Online]. Academy of Management Executive, 9 (4): 59-61.
Kotler, P, Keller, KL, Koshy, A, Jha 2013. Marketing management: a South Asian perspective, Pearson, India
Lenway, S., & Murtha, T., 1994. The state as a strategist in international business research. Journal of International Business Studies. 25(3):
Peter Roberts, 2015. Peter Roberts Watches, [Online] Available at http://www.peterrobertswatches.com/ (Accessed 8th April 2015).
Porter, M.E. (1985). Competitive advantage: Creating and sustaining superior performance. New York: Free Press.
Teece, D.J., & Shuen, A., 1997. Dynamic capabilities and strategic management,” Strategic Management Journal, 18 (7): 509-533
HKTDC Research. 2015. Watches and Clocks Industry in Hong Kong [Online]. Available at http://hong-kong-economy-research.hktdc.com/business-news/freepdfdownloadservlet?articleID=1X001DHG&LANGUAGE=en (Accessed 8th April 2015). Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Peter roberts watches expanding in HONG KONG Essay”, n.d.)
Peter roberts watches expanding in HONG KONG Essay. Retrieved from https://studentshare.org/macro-microeconomics/1687541-peter-roberts-watches-expanding-in-hong-kong
(Peter Roberts Watches Expanding in HONG KONG Essay)
Peter Roberts Watches Expanding in HONG KONG Essay. https://studentshare.org/macro-microeconomics/1687541-peter-roberts-watches-expanding-in-hong-kong.
“Peter Roberts Watches Expanding in HONG KONG Essay”, n.d. https://studentshare.org/macro-microeconomics/1687541-peter-roberts-watches-expanding-in-hong-kong.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Peter roberts watches expanding in HONG KONG

Malaysia and Hong kong

...?Malaysia and Hong Kong Table of Contents 0.A Case Study Analysis: Hong Kong 3 1.Government’s Role in Enhancing Economic Competitiveness 3 2.Role of Human Capital in Developing Economic Competitiveness 4 1.3.SWOT Analysis of Hong Kong’s Human Capital 7 1.4.Key Characteristics of a Knowledge-Based Economy According to APEC 9 1.5.Recommendations 10 2.0.A Case Study Analysis: Malaysia 11 2.1.Causes of the Financial Crisis in Malaysian Economy: 1998 and 2008 11 2.2 Governmental Measures Undertaken 12 2.3 Pros & Cons of the Measures Adapted 13 2.4 The Present Scenario: Economic and Social Context 14 References 15 Bibliography 17 1.0. A Case...
7 Pages(1750 words)Essay

Hong Kong Courts Sentences

...? Hong Kong Courts Sentences of To what extent do you agree that the sentences delivered by the Hong Kong Courts aretoo lenient and not able to reflect the abhorrence of the society? Introduction It is evident from Hong Kong’s sentences that the delivered sentences do not reflect evils being done in the society because they are executed with a lot of leniency. As a result the societies have been faced with recurrent problems which seem not to be ending. The government should therefore work hand in hand with the law courts to ensure there are correct measures and laws that will uphold the integrity of Hong...
10 Pages(2500 words)Essay

History of Hong Kong

...parlors and homes. The incident of elderly men playing chess in public parks, encircled by watching crowds, remains common. Other board games like Chinese checkers get also enjoyed by people in Hong Kong. Among teenagers, eating out, karaoke, video games and shopping, remain common, with Japan being their chief supply of digital entertainment for cultural and immediacy explanations; there exist also popular local inventions like “Little Fighter Online” (Carroll, 2007). Formerly, Hong Kong had among the most updated galleries games available outside Japan. Negative associations got drawn between video game arcades and triads. Nowadays, soaring admiration...
8 Pages(2000 words)Research Paper

Disneyland Hong Kong

...? Disneyland Hong Kong Table of Contents Disneyland Hong Kong Table of Contents 2 Executive summary 3 Introduction 3 Disney on international forum 4 Company background 4 Development of Disneyland in other international destinations 5 Hong Kong Disneyland 6 Disneyland in Japan 7 Disneyland in France 8 Conclusion and Recommendations 9 References 10 Executive summary The Disneyland is a fascinating name in the entertainment industry that is a multi-million dollar lavish and prolific theme park. It is present in different countries and is rated as one of the best elements in the global entertainment industry. Since 1955, The Walt Disney...
7 Pages(1750 words)Essay

The City of Hong Kong

...and one of the leading producer and exporter of textiles, watches, toys, apparels, plastics and electrical appliances (Siu & Ku, 159). In Hong Kong, the major leading industries are financial services, Tourism, Logistics & Trading and professional & producer services. These industries are the driving force of the economic growth of the country under consideration. These specific industries used to provide impetus to growth of various sectors and help to generate employment. Competitive Advantage and Production of Goods The logistics and trading industries used to consolidate different production and economic activities. Moreover, it used to help the problem of unemployment. This...
10 Pages(2500 words)Research Paper

Hong kong disney land

...it and the government (Einhorn & Balfour, 2009). The government also offers expertise in local market knowledge to Disney, thereby providing real-time, relevant knowledge to Disney, so that it can properly adapt its marketing mix to local markets (“Case Study,” n.d.). In addition, the government can provide the infrastructures needed for expanding the theme park. Hong Kong Disney wants to expand its park, and right now, it is waiting for the government to finance part of the expansion (Einhorn & Balfour, 2009). Hence, Disney reaps diverse economic, social, and cultural advantages in working with governments as partners. As for Hong Kong...
3 Pages(750 words)Essay

Hong Kong film

... Ching Yun, "Cantopop Songs on Emigration from Hong Kong." In Yearbook for Traditional Music, 24: 14-23, 2002. Lee, Joanna Ching Yun, "Popular Music" under "Hong Kong" in The New Grove Dictionary of Music and Musicians, vol. 11: 686, 2001. Li, Siu Leung, Cross-Dressing in Chinese Opera. Hong Kong University Press, 2003. Manuel, Peter., "Perspectives on the Study of Non-Western Popular Musics" in Popular Musics of the Non-Western World. Oxford University Press, 1-23, 2004. To, Yee Ming, "Disappearing Childhood: A Case Study of Hong Kong "Children's Songs"-"Yi Goh," paper presented at the annual meeting of the Society of Ethnomusicology (SEM), Miami, 14 pp, 2003.... w. Hong Kong film Introduction...
5 Pages(1250 words)Essay

Company law (hong kong)

...Company Law Order #135643 (words 3020) Business corporations exist for the sole purpose of making profits for their stockholders". (A A Berle, "For Whom Corporate Managers Are Trustees "A corporation is an abstraction. It has no mind of it's own any more than it has a body of its own; its active and directive will must consequently be sought in the person or somebody who for some purposes may be called an agent, but who is really the directing mind and will as the corporation, the very ego and centre of the personality of the corporation1" The main objective of any business corporation is to make profit for both shareholders and stock holders of the company. Therefore managers are trustees of the organization... Law Order #135643...
12 Pages(3000 words)Essay

Hong Kong Hotel Industry

...Dissertation Proposal "Do environment friendly practices can create competitive advantage in Hong Kong Hotel Industries" We all know that Hong Kong is one of the major tourist spots not only in Asia but also in the world. Since it was colonized by Britain, this place somehow showed a remarkable growth in industrialization in which investments from different countries came. It also distinguished itself as more ahead from China with the way their trade and commerce goes. Upon seeing these things, Hong Kong has a big potential in attracting tourists and more likely uplift the Hotel industries within its vicinity. However, due to the fact...
7 Pages(1750 words)Essay

Hong Kong Cinema

...Hong Kong Cinema Hong Kong, a part of the People's Republic of China, had existed as a colonial holdover up to the middle of the 1990s. A global state, a polis and a mini-cosmos - there are not enough metaphors to describe its national peculiarities in cultural, political and social senses. Hong Kong has made tremendous impact on the whole Chinese film industry, in particular, due to its prominent filming trends and distinguishable characteristics. Before the return into China, there was an euphoric discussion about Hong-Kong's astounding development to a world-class city. Many cinema critics attribute...
9 Pages(2250 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Peter roberts watches expanding in HONG KONG for FREE!

Contact Us