Q5 Should Ping An try to go global again? If so, what should it market entry strategy be? As the global economic crisis abated in 2010, the current economic condition in most countries especially in the emerging market sector has been more than conducive for Ping An to go global and penetrate into these market. However, it must be noted that the European Debt Crisis is still going on in most of the European countries, and thus, it might be more favorable for Ping An to focus on the Asia-Pacific market where most of the markets are still emerging and most importantly, these markets have low correlation with the impact of global economy crisis due to lesser trading activities with those countries affected by the crisis. In order to penetrate successfully into emerging market and less developed countries such as India, Vietnam and Africa, one needs to understand several factors relating to the target markets such as local cultural & customary practices, size & scope of possible opportunities, understand needs and wants of consumers and observe how the services are used in the market and by whom. Moreover, the strategy Ping An choose to pursue foreign market opportunities usually depends on a number of factors including cost of alternative strategies, the amount of inherent risks involved, government regulations and local market conditions. While asset management had been slow to take off in most developed countries, insurance sectors are growing rapidly in emerging economies. Supported by favorable macroeconomic factors including population growth and rising income levels such as the case of India where the Indian insurance industry emerged as one of the fastest developing markets of the global insurance industry (Money Control 2011). Some of the market entry strategies that Ping An could use include setting up wholly owned subsidiaries in these emerging market. This is when 100% of the subsidiary’s common stock is owned by Ping An. With such strategy, Ping An...
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