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Asia Market Opportunities

A. Tony Prasetiantono Week 3

Case Study: British Airways Vs SQ


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Revenue $13.7 billion Profit $236 million Tot. assets $22 billion ROE 5.9% ROA 1.1% EBITDA $1.9 billion EBITDA/Sales 14.3% Profit/Sales 1.7% Sales growth 13.3%


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$5.7 billion $502 million $9.8 billion 2.0% 2.6% $1.1 billion 19.1% 8.7% -2.9%

Case Study: British Airways Vs SQ
Service quality (on board and ground)  Availability of routes  State of the art aircraft  Competitive fares  Frequent Flyer program  Brand name recognition

SQ: Three Major Competencies
Providing quality service  Managing capital expenditure  Optimizing collaboration with international partners

Asia Market Opportunities
In GDP terms, in 2003 Asia made up 20% of global output.  In PPP terms, Asia represents at least 40% of global output today and is projected to climb to 50% within 15 years.

“Green GDP”
The issue of environment  The issue of sustainability  Taking nature into account  Green GDP = Economic production – Environmental costs  (World Wide Fund, European Parliament, Club of Rome)

Human Development Index
Australia 0.946 (GDP per capita $20,969)  Japan 0.938 ($31,293)  New Zealand 0.926 ($15,035)  Singapore 0.902 ($20,886)  Korea, Rep. 0.888 ($10,006)  Brunei 0.867 ($?)  Malaysia 0.793 ($3,915)  Thailand 0.768 ($2,052)  The Philippines 0.753 ($964)  China 0.745 ($966)  Indonesia 0.692 ($817)

Human Development Index

A gradual shift away from merely fulfilling basic needs for food, clothing, transportation, education and entertainment towards increased spending on philharmonic tickets, postgraduate study programs, overseas family vacations, contributions to charity, support for environmental protection, etc.

Defining Market Opportunities
Organic growth  Shifting the manufacturing base  Product upgrade  Statutory requirement  Localization requirements  Technological breakthrough  Change of family structure

Case Study: VW Vs Toyota
Revenue $108 billion  Profit $1.3 billion  Tot. assets $148 billion  ROE 4.6%  ROA 0.9%  EBITDA $12.6 billion  EBITDA/Sales 11.7%  Profit/Sales 1.3%  Sales growth 19.4%

$162 billion  $10.9 billion  $207 billion  14.2%  5.3%  $24.7 billion  15.3%  6.7%  20.6%

Case Study: Volkswagen Vs Toyota
In China, Toyota is working hard to make up lost ground on Volkswagen and GM.  Toyota is aiming to increase its market share in China from 1.5% to 10% by 2010.  For Volkswagen, its success in China and its traditional strong presence in German-speaking countries give the company a strong base for remaining a key global player.