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Foreign Market Strategy: Old Chang Kee

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Question:

Discuss about the Foreign Market Strategy for Old Chang Kee.

 

Answer:

Introduction:

Old Chang Kee started in the year 1956 as the small stall within the coffee shop that exist near the Rex Cinema as well as Mackenzie Road. People from different parts of Singapore often travel to the stall to have the perfect curry puff, which is also known as Rex Curry Puff (About Us - Our Heritage, 2012). To enter in Hong Kong market, the company had focused towards joint venture as its foreign market entry strategy. In the initial stage, Old Chang Kee was interested in considering to form a partnership with the well set up resorts in Hong Kong. For Old Chang Kee, the benefit of partnership strategy at this stage was that it can easily leverage its local knowledge, brand, and experience (Susan & David, 1999).

As Hong Kong is a new market for Old Chang Kee, doing a partnership with the local company might speed up with its adoption and understanding process with the local differences in the context of needs and culture. The local company brand might also be considered as one of the factors that could offer benefit to the company through attracting the loyal customers in the business (Hill, 2006). Old Chang Kee can even have easy access to Hong Kong Market, although the Hong Kong market is attractive and open towards FDI, the government still try to take a lot of protective measures against the global companies. By using the partnership strategy, the company can share the risk, and make right decisions. The level of right might go differently as per partnership deed, but still, 51% of the right can exist due to the power of business (Louise, Jame & Michiel, 2001). 

 

References

Hill, C. (2006). International Business: Competing in the Global Market 4th ed. Pearson Education Limited

Susan, S.H., & David, F. (1999). The Dynamics of International Strategy. International Thomson Publishing

About Us - Our Heritage. (2012). Retrieved on 7th August 2016, from https://www.oldchangkee.com/our-heritage.htm

Louise, A.M.L., Jame, A.E., & Michiel, R.L. (2001). “Learning with Cases”, 2nd Edition. Richard Ivey School of Business, the University of Western Ontario

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