ABC Expansion

Agenda
Introduction
Analysis
Strategy
Risks
Finance
Overview
How Can ABC Grow in
Asia-Pacific amidst
challenges?
 SWOT
Strengths Weaknesses Opportunities Threats

Reputation Unknown in Asian mkt E-commerce Trade Policies

Tech Capabilities Saturation Market Share Currency

Finance Economic Slowdowns Growing Middle class Politics

Diverse prod Portfolio Culture Existing Competition

Strategy
Overview
Enhance knowledge of the Asia-
Pacific countries, collaborate with E-
commerce platforms, open offices,
Advertising
Strategy 1- Market research
Employ marketing agency Scope of Mkt: income rates, competitors,
Market research will technological adoption rate, Culture, norms
Ogilvy in selected Asia-
allow ABC to gain insight and regulations, Importation fees, Target
Pacific countries to
into the Asia Pacific Audience.
conduct the research.
markets, which they can Methodology: Questionnaire, interviews
use to devise strategies. China, Japan, South Sample size: ¼ of the target audience
For Example, Korea, India, Singapore, Geographic coverage: Metropolitan cities and
Australia, New Zealand outskirts
Deliverables: Presentation and report
Strategy 2- Production
From the insight gained from Ogilvy, ABC
must manufacture products for different
countries.
For example, ABC can manufacture Phones
specifically for every country, as it can
employ dynamic pricing strategies. In
South Korea, they must add a minimum
sound of 64 decibels on their cameras as it
is mandatory.
 Strategy 3- Amazon
collaboration
Amazon is a successful e-
commerce platform, and it
has gained trust over the
years in Asia-Pacific
countries. People view
Amazon as safe, reliable and
fast.
ABC will sell their products
on Amazon as they have an
established online business
model. For example, they
have their delivery drivers,
their offices, help centres,
payment options system.
Strategy 4- Offices and
Warehouses
• To dispatch products to Amazon, ABC must have a
warehouse to stock up their products. They also need
an office where they can repair faulty items, manage
operations, and help with Amazon Customer Service.
Supply chain analysis

Importation Warehouse Amazon Marketing Aftersales

Key results

• Efficiency in Advertising (Holistic Advertising with Ogilvy and Amazon)

• Growth without investing huge capital.
Strategy Assessment
1. Meets the objective of growth in Asia-
pacific countries
2. Up-to-date data from Ogilvy in those
countries.
3. Efficient Supply Chain
Risks 1

• Data might be skewed

• Language barriers
• Unforeseen Challenges
Risks Mitigation 1

• Outliers
• Ogilvy must use Bilingual Researchers
• Planning
Risks 2 & 3

• Performance metrics
• Inventory Management
• Fake reviews
• Amazon fees
Risks Mitigation 2 & 3

• Employ and Train Employees

• Barcodes
• Amazon support Service
 Risks 4

• Tax and Legal Risks

• Security Risks
• Language barriers
• Currency exchange risks
 Risks 4

• Training Tax and Legal employees

• Security systems
• Bilingual Supervisors
• Fixed Exchange Rates
Timeline
Costing
Activites Costing

Market research 2.1 HKD

Production 21-140 mn HKD

Warehouse (50k sq m) 350,000 HKD

Training Programs 86mn HKD

Recruiting 49mn HKD

 Conclusion

Market Office and

Production Amazon
Research Warehousing
Thank you