This report will be based on the Large international company known as HSBC. This report will talk about the market presence of HSBC and the market patterns and trends. The market will also be analysed for its Micro and Macro economic trends and patterns that would help HSBC identify opportunities within the Market. A SWOT analysis will be created to determine how HSBC has grown and how it achieves a large market share in the International Market. Finally the target market will be identified through segmentation and I will state some recommendations that I believe HSBC should follow.
Table of Contents
Porter’s Five Forces
Behaviours of the customers
The business environment of HSBC is very important to understand and learn. HSBC is such an important company n the world because of its strong bank presence is most westernized countries in the world. The company was founded by a man named Thomas Sutherland who was from Scotland. It was established in 1865 and gradually grew larger. This report explains the macroeconomic and business analysis of the HSBC Company. (HSBC, 2013) HSBC is an international bank that has made its way into Australia. HSBC, also known as Hong Kong and Shanghai Banking Corporation was found in Hong Kong and one month later in Shanghai, however the bank was owned by a British colony. The company grew into more and more countries, soon making it one of the biggest international banks in the world. HSBC kept making great profits up until the year of 2000 where it made its big move on the European market. HSBC had a very large financial which allowed it to buy out a great amount Banking companies in Europe. In 2000 it bought out a French bank named, Credit Commercial de France, which was quite large and gave HSBC a big advantage in the market. (HSBC, 2013) After a year or so, HSBC continued to venture into the market, purchasing other large banks in Europe such as the Demirbank, a strong bank in Turkey. HSBC soon established a strong presence in the European Market and spread to other countries all over the world. Australia is one of the countries that HSBC operates in. Though HSBC is not a large competitor in the Australia banking market, it still plays a more important role in the Australian merchant banking sector of the Australian market. HSBC has not established its headquarters in London and has small branches around the world. In the Australian Market, HSBC has a small market share compared to the 4 major banks of Australia, also known as the “4 pillars”. These 4 banks, are the largest banks in Australia, Commonwealth Bank, Westpac Banking Corporation, Australian and New Zealand Banking Group and the National Australia Bank respectively. These 4 banks take up the majority of Australia’s banking shares and control the whole market. Australia has created a “4 Pillars” policy which states that no two of the 4 Pillars can merge together as this would make the market extremely unstable. However a lot of business people have argued that a merger of the 4 pillars could end up making the market develop a lot faster. (Australian Gov., 2013) There are a large number of regulations that are enforced in the Australian Market and that makes the market run more smoothly and efficiently. The main regulators of the Australia Banking Market are Australian Prudential Regulation Authority and the Australian Security and Investments Commission. Both these regulators are strict and authoritative of the Banks in Australia and make sure that any problems and complaints in the market are examined and solved. The APRA is more responsible for the authorisation of the Bank in the market. ASIC is more responsible for the behaviours and actions of the...
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