Sasa International's Entry Into the China Market
Executive Summary
In the midst of China cropping up as a hidden dragon, every firm that plans on foreign expansion is tempted into penetrating China out of all the optimization competitive advantages provided. Being one of them, SaSa, a listed well-know cosmetic chain store that stands alone in Hong Kong, has already taken action. Our report is to analyze SaSa’s business expansion in China.
The background part reveals how SaSa has been turned around, originating as a small open-shelf retailer and her development over the past two decades. Then we will go into the details of the qualities of SaSa International, which generally concerns her strong parallel shipment capability, covering a wide variety of brands and products. Following these is the institutional contexts of Hong Kong, which throw light on SaSa’s magical success.
Strategic options available to SaSa will then be discussed, with the focus on expansion in China. The institutional variables and environment in China are then looked into and compared to those of Hong Kong, followed by a detailed analysis on why SaSa has gone down in China.
Last but not least, recommendations are put forward for SaSa to maximize her shareholders’ benefits.
Introduction
Stepping into 2008, it has to be the year of China. There is the Beijing Olympics, there is the snowstorm, there is the rapid appreciation of the currency and there are a lot of reforms and macro-controls. No matter what, China provides intriguing opportunities for foreign firms to invest and develop business in. Every business and corporation would like to ride on the trend of China’s development to boost their positions in the world.
Despite all the advantages to pursue profit in an emerging country, there are obstacles that stand before investors politically and culturally in China. At times, it may seem to be too critical to speak for or against China’s policy and condition for running business, but it is interesting how businesses accommodate
In the midst of China cropping up as a hidden dragon, every firm that plans on foreign expansion is tempted into penetrating China out of all the optimization competitive advantages provided. Being one of them, SaSa, a listed well-know cosmetic chain store that stands alone in Hong Kong, has already taken action. Our report is to analyze SaSa’s business expansion in China.
The background part reveals how SaSa has been turned around, originating as a small open-shelf retailer and her development over the past two decades. Then we will go into the details of the qualities of SaSa International, which generally concerns her strong parallel shipment capability, covering a wide variety of brands and products. Following these is the institutional contexts of Hong Kong, which throw light on SaSa’s magical success.
Strategic options available to SaSa will then be discussed, with the focus on expansion in China. The institutional variables and environment in China are then looked into and compared to those of Hong Kong, followed by a detailed analysis on why SaSa has gone down in China.
Last but not least, recommendations are put forward for SaSa to maximize her shareholders’ benefits.
Introduction
Stepping into 2008, it has to be the year of China. There is the Beijing Olympics, there is the snowstorm, there is the rapid appreciation of the currency and there are a lot of reforms and macro-controls. No matter what, China provides intriguing opportunities for foreign firms to invest and develop business in. Every business and corporation would like to ride on the trend of China’s development to boost their positions in the world.
Despite all the advantages to pursue profit in an emerging country, there are obstacles that stand before investors politically and culturally in China. At times, it may seem to be too critical to speak for or against China’s policy and condition for running business, but it is interesting how businesses accommodate