Hket Case-Strategy Essay

Words: 1485
Pages: 6

1. External factors that have impacted the profitability of the newspaper industry in general and, specifically in Hong Kong, over the last 20 years:

Main factors:-

Economy and government policies-China adopted Open Door Policy for businesses. This promoted foreign trade and economic investment, and led to evolvement of many business start-ups. In 1980s, the economy was booming, Hong Kong became magnet for international trade, with its high GDP growth rate, averaging to 5.2%. With improved income and GDP growth, the quality of life enhanced over years and gave higher purchasing power to citizens. Individuals now could afford to pay for their valued-needs.
The real estate boom in 1990s generated a new market segment of property
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They had decentralized management structure but with shared core value of group. The four guiding principles namely The idea, Its Potential, Commitment, and The Plan steered the group through its path of diversified growth. The business units had own management teams for strategic decision making, which resulted in flexible and speedy response to market change. The uncontested market was created with differentiation strategy. The core values-listen, focus and strive to excel concurred with the need to differentiate the product and aligned the whole system of company’s activities.

Shrewd management.
Companies create a leap in value (not competitive advantage) so that new demand is created whereby competition is made irrelevant

A leap in value in blue oceans is about increasing value and decreasing costs

The claim that blue ocean strategies are often created from within existing industries is too limiting: Internal opportunities may be so limited that it may be essential to