Asiasports: Hockey Night in Hong Kong
Asiasports: Hockey Night in Hong Kong
Determining the Future Business Strategy of Asiasports Limited In March of 1999 the primary decision makers of Asiasports found themselves at a crossroads. “Barnes, Weir, and Gribble had to make decisions about whether the company should promote hockey outside of Hong Kong and its choice of sports properties. An implementation plan also had to be developed for the chosen strategy” (Delios 1). Although every one of their sports properties was profitable except for the World Ice Hockey 5’s event, Asiasports still experienced a loss in 1998 operations. Therefore Barnes and the primary shareholders of Asiasports were faced with a difficult question regarding the direction of their future business strategy. Should they continue to focus on developing their existing sports properties and working towards Barnes goal of bringing hockey to Asia, or should they explore options related to geographic and product diversification? Firm Analysis Asiasports was started as a sports management company to develop the growth of hockey in Hong Kong. Asiasports managed leagues and events in relation to hockey, as well as other sports such as softball and golf. The company is privately held, and “it was a young entrepreneurial company that had the financial and human resources constraints typically face by such companies” (Delios 13). A SWOT analysis and a look at the firm’s resource competitive advantages and financials provide insights into Asiasports as a company. SWOT Analysis: Appendix 1 A SWOT analysis shows that Asiasports primary strengths are its sport properties and experience in running tournaments in Hong Kong, while its greatest weaknesses are its lack of financial and HR resources. In addition, the firm is not demonstrating profitability. Opportunities include the growing popularity of hockey in Hong Kong, and the strength of local consumers. Direct threats from competition in the arena of hockey are not present now, but they could
Determining the Future Business Strategy of Asiasports Limited In March of 1999 the primary decision makers of Asiasports found themselves at a crossroads. “Barnes, Weir, and Gribble had to make decisions about whether the company should promote hockey outside of Hong Kong and its choice of sports properties. An implementation plan also had to be developed for the chosen strategy” (Delios 1). Although every one of their sports properties was profitable except for the World Ice Hockey 5’s event, Asiasports still experienced a loss in 1998 operations. Therefore Barnes and the primary shareholders of Asiasports were faced with a difficult question regarding the direction of their future business strategy. Should they continue to focus on developing their existing sports properties and working towards Barnes goal of bringing hockey to Asia, or should they explore options related to geographic and product diversification? Firm Analysis Asiasports was started as a sports management company to develop the growth of hockey in Hong Kong. Asiasports managed leagues and events in relation to hockey, as well as other sports such as softball and golf. The company is privately held, and “it was a young entrepreneurial company that had the financial and human resources constraints typically face by such companies” (Delios 13). A SWOT analysis and a look at the firm’s resource competitive advantages and financials provide insights into Asiasports as a company. SWOT Analysis: Appendix 1 A SWOT analysis shows that Asiasports primary strengths are its sport properties and experience in running tournaments in Hong Kong, while its greatest weaknesses are its lack of financial and HR resources. In addition, the firm is not demonstrating profitability. Opportunities include the growing popularity of hockey in Hong Kong, and the strength of local consumers. Direct threats from competition in the arena of hockey are not present now, but they could
Cited: Daniels, John D. et. al. International Business Environments and Operations. Upper Saddle River: Pearson Education, Inc., 2007. Davila, Antonio et. al. Futbol Club Barcelona: Globalization Opportunities. Stanford: The McGraw-Hill Companies, 2007. Delios, Andrew. “Asiasports: Hockey Night in Hong Kong.” Ontario: The McGraw-Hill Companies, 2002 Ghemawat, Pankaj. "Distance Still Matters: The Hard Reality of Global Expansion." Harvard Business Review. Sept. 2001. https://www.cia.gov/library/publications/the-world-factbook/index.html