Global Business Strategy Analysis

This assignment requires students to critically analyze various global business strategies. It involves examining real-world case studies, applying relevant theoretical frameworks (like Porter's Five Forces), and considering factors such as international market entry modes, competitive advantage creation, and the influence of culture on strategic decisions.

Running head: Asia pacific business perspective 1
Asia pacific business
perspective
Harvey Norman (Singapore)
Submitted by:

Harvey Norman (Singapore) 2
Contents
Introduction....................................................................................................................................................3
Motivation for Investment in Asia.................................................................................................................4
Fast-developing environment.....................................................................................................................5
Enormous population and market..............................................................................................................5
Exciting atmosphere...................................................................................................................................6
Advanced infrastructure.............................................................................................................................6
Rationale for the choice of country................................................................................................................7
Employees availability...............................................................................................................................8
Legal protection.........................................................................................................................................8
Business supportive environment..............................................................................................................9
Business segment and competitive approach.................................................................................................9
Source of market intelligence available.......................................................................................................11
Dos and Don’ts of conducting business in Singapore.................................................................................12
Do’s..........................................................................................................................................................12
Don’t........................................................................................................................................................13
Key competency of Harvey Norman for expansion in Asia........................................................................13
Challenges faced by the company................................................................................................................14
Conclusion...................................................................................................................................................15
References....................................................................................................................................................15

Harvey Norman (Singapore) 3
Introduction
Harvey Norman is a large sized Australian multi-national retailer of furniture, bedding,
computers, communications and consumer electrical products. The company mainly operates on
franchise system where the main brand is operated through stores owned by ASX-listed Harvey
Norman. As on 2016, there are 280 company-owned and franchised stores in Australia, New
Zealand, Europe and South-East Asia under the name of Harvey Norman. The brand has
occupied a huge market share due to its innovative practice. This has allowed the brand in
gaining significant market share not only in Australia but in South East Asia. Customers feel
delighted due to availability of different product under one roof where they can easily
differentiate. The company is planning to expand strategically across globe with a strategy to
gain market competency. As of 30 June 2015, the company has overseas operations in Republic
of Ireland, Malaysia, New Zealand, Northern Ireland, Singapore, Slovenia and Croatia
(CompanyProfile.2008).

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The report is based on the strategic growth and expansion plan of Harvey Norman in Singapore.
It defines the strategy incorporated by the brand in the country to gain market competencies.
Harvey Norman stores in Singapore is owned and operated by a Singaporean company, Pertama
Holdings Limited. Harvey Norman and its associated company hold 80.2% of the company, with
a Singaporean sporting distributor, Ossia International, holding 19.8%. As of July 2013 Harvey
Norman Singapore and Harvey Norman ossia (Asia) Ltd had held over 83% of Pertama's shares.
Harvey Norman is functioning directly owned by the Harvey Norman Holdings Limited.
Motivation for Investment in Asia
The Asian market is booming at a fast pace creating ample of opportunities for the international
business organizations. The economies in Asian countries are rising, creating opportunities for
the International business organization to grow well.
The data published by World Bank shows the GDP growth in South Asia rose to 6.9 percent in
2014 and 7.5 percent in 2015. The Asian market is an untapped market with massive potential.
The reasons for making an advancement to nurture or develop a business in this continent:
Fast-developing environment
The Asian market is fast developing with extraordinarily focus on innovative intervention. There
are World-class tech hubs in Singapore, Hong Kong, Tokyo and other Asian cities. Asia is a fast
developing market with ample of market opportunities for the international organization.
Advancing technology, government support and tax breaks have created a favorable environment
to nurture businesses. These facilities have attracted international companies to explore the
business opportunity out in Asia. A report from Forrester forecasts that online business in China
will reach $1 trillion by 2019. The fast market growth is achieved due to technology based
driven business environment. The business advancements have helped in managing the business
in an appropriate way by creating market opportunities. An Increase access to mobile devices,
ecommerce and apps has improved the overall networks developing multiple opportunities in
order to develop a better environment (Dunning, 2012).

Harvey Norman (Singapore) 5
Enormous population and market
The Asian market is very big with a huge population. The vast population represents vast market
potential customers with lot of business opportunities. This has helped business in delivering
effective upcoming and untapped talent. This is how the Asian market is growing considering
the market growth and development opportunities. The growing population with the evolving
tech industry has helped in a systematic growth. Asia has a large pool of talent and customer
base, creating a wide level of business opportunities. These opportunities have enabled the
international business organization in gaining market competencies (Fernie and Sparks, 2014.).
Exciting atmosphere
The Asian market has an exciting culture for the international organization in order to gain
market opportunities. This is important for the business organization to manage the ample of
growth and development opportunities in Asia. This has helped in creating better opportunities
in order to gain competencies is. Contrasting established markets in the U.S. and Western
Europe, Asian market is an emerging economy creating a wide scope for innovation and unique
opportunities (Khanna, Palepu and Sinha, 2005). The start-up culture in Asian countries has
increased at an incredible rate, and that’s inspiring. Cities like Beijing, Tokyo, Shanghai and
Bangalore were among the top six in the world in terms of growth in venture-capital deals in
2014. The Asian economy is developing at a fast pace which means development of new
opportunities and possibilities available in creating a better growth opportunities (Kalhan, 2007).
Advanced infrastructure
Moreover, Asian countries have better infrastructure facilities connecting major cities. The better
infrastructure facility has helped in developing better opportunities. Major cities in Asia have
advanced infrastructure helping in raising the business opportunities. Rapid growth in Asian
countries has helped in developing better investment opportunities in both economic and social
infrastructures (Killing, 2012). This has helped in gaining better opportunities for the
international companies in order to gain market growth. The advanced market infrastructure has
helped in attaining an effective market growth and infrastructure based opportunities. The better
infrastructure opportunities have helped in gaining opportunities. These policies are important

Harvey Norman (Singapore) 6
for the organization in managing market competencies. The long-term sustainable organizational
culture has created wide organizational goals in order to master growth strategy (Kim, Park,
Park, and Joo, 2005).
Rationale for the choice of country
Singapore stands at a strategic position at the confluence of the East and the West. The country is
known very well as a significant business hub. The geographic location of the country has helped
in creating an important market share. Singaporean sea ports are linked very well with the rest of
the country creating wider business opportunities. The Singaporean Airport is ranked amongst
the top 5 for air cargo. The flights are well connected with most of the countries providing with
better business opportunities (Kinra, 2006). In order to be developed as an efficient and advanced
business hub, the country has gained an effective market growth structure in order to create
better market value. Singapore has a wide market with a better infrastructure making it the most
suitable option for the International brands. The ‘Smart Nation’ program is created and delivered
by the Government with a purpose to harness improved lives of citizens and for creating more
opportunities to develop stronger communities. There are wider opportunities that have helped in
utilising technology in order to serve people and their needs in order to manifests innovative
creations such as the Beeline App. This app is important from the point of view to develop
transport routes based on commuter’s demands (Kolstad and Villanger, 2008). The efficient
transport and infrastructure has provided with an evident services to offer young technologists
the challenge to meet the targets. The infrastructure and business development initiative by the
government has purely helped in managing the business organization in dealing with the issues.
The city has a physical infrastructure with a highly-developed integrated transport system that
supports Mass Rapid Transit (MRT) trains, buses and taxis. In 2013, Singapore was voted as the
world’s best infrastructure under the survey undertaken by consulting firm Mercer for the Wall
Street Journal.
Employees availability
Most interestingly the working environment in Singapore is highly sophisticated infrastructure
supporting the balance in between if the workforce that support structures efficiently. In spite of

Harvey Norman (Singapore) 7
the country’s size, Singapore’s is one of the highly educated and motivated workforces in the
world. Singapore came top for Labor drive assessment. The city appreciates the most astounding
positioning for work in terms of laborers' abundance and general state of mind, due to
Singapore's unrivaled business exhibitions with cutting edge technology. The inspiration and
efficiency is a consequence of powerful organization arrangements, an exclusive requirement of
living and a dedicated culture (Kotler, 2009).
Legal protection
Stringent Intellectual Property (IP) laws and a noteworthy prominence on the regulation have
guaranteed that organizations while making an investment into Singapore. The Government has
remained a foundation of Singapore's development in the course 50 years; a representative for
the Law Society of Singapore remarking that ''It gives a structure that is straightforward and
advances sureness in the law, which gives outside speculators certainty.
Lawful security is communicated most clearly everyday by thorough and regarded IP laws.
Singapore is positioned fourth in the world and first in Asia due to the best IP insurance by the
World Economic forum Report 2015/2016. In addition the U.S. Global Intellectual Property
Centre’s 2015 additionally positioned Singapore top in Asia for its IP environment. Such lawful
security has prompted a progression of multinational worldwide companies, for example, Procter
and Gamble and DHL, choosing Singapore as their decision for innovative work formation.
While Expanding on the lead of law and pragmatic reality of business exchanges, Singapore has
built up an ideal money related law, including the production of mediation focus and devoted
business court. This is making a steady and secure condition to direct business to thrive as a
worldwide legitimate focus and Singapore is presently sticking to this same pattern
Business supportive environment
The above mentioned factors are important for gaining effective results while conducting
business activity. There are supportive funding bodies that are involved in providing an easy
trade and commerce. The availability of private investment has provided with a wider scope in
order to gain a competitive advantage. This business environment is playing an important role in
managing the business requirements.

Harvey Norman (Singapore) 8
Business segment and competitive approach
The Retail volume sales of consumer electronics market in Singapore have reduced in 2016 due
to the slowdown of economy, poor employment and wage stagnation. A lack of innovation in the
market was one of the major reasons for the declining sales and caused a slowdown in
Smartphone’s, tablets and wearable’s.
In the recent time period there is been a fall in the smart wearable’s as the expectations remains
confined to a very niche audience. No matter, there has been a revolution in the industry, but
there was no significant change in the not obligatory accessory.
There are certain Chinese brands who sustained their space in the consumer electronics, chiefly
in smart phones, cannibalizing sales of existing brands. Xiaomi, Huawei and Oppo are the few
brands that performed extremely well because of the product offerings. There are other brands
like Apple Watch and Samsung affected by the invasion of Chinese brands. The sales of mid-
priced brands like LG, HTC and Sony has suffered competition from low priced Chinese
Smartphone (Chong, Seng, 2015).
There is a feeble domestic and tourist demand, competition from online retailers and cross-
border transactions. The consumers are largely dependent on the flagship stores, experiential
spaces and Omni-channel strategies. A majority of Electronics and appliance specialist retailers
are refurbishing existing outlets in order to add innovative features (Johnson, et al 2013). These
Retailers are focusing on concept stores helping in managing the sales in an effective way. In
this way the company is able to interact with sales team while merging online channels to create
a better option for the people. Singapore market has a sluggish competition with a very few
stores based on the same concept. These stores are helping in creating a seamless customer
experience in order to create a seamless shopping experience. Challenger, Courts and Mustafa
Center are some of the example of the Electronic retail store. Harvey Norman is already doing
well in the market due to availability of less competition. . The stores operate with a high level
of integrity. They are known across in Singapore for providing better discounts. In this way they
are able to manage and integrate the franchise mechanism In Singapore (Motohashi, 2015)

Harvey Norman (Singapore) 9
Source of market intelligence available
Harvey Norman stores in Singapore have a full range of technology gadgets and household
appliances. They are providing with the Apple laptops, Samsung tablets, Sony entertainment
systems and other appliances. The store provides with an excellent services with an efficient
professional. The employees are helpful, friendly in terms of providing with services. This has
allowed the brand in expanding business in Singapore. Within a short tenure the brand has
established itself as a well-established brand. They are not using hard selling tactics to please the
customers. They only believe in giving an effective shopping experience to the customers. The
brand is known across Singapore as an efficient consumer electronics shopping places; Harvey
Norman offers a largest selection of different brands that includes works with Bosch, a famous
German manufacturer (Peng, 2016). The one stop store is evidently helping the brand in making
significant changes in the market. This is providing an effective way to deal with the strategic
marketing issues. Harvey Norman has significantly gained market growth in the Singaporean
market. This is helpful for organizing better growth opportunities in Singaporean market. This is
important for managing the challenges occurring at the local market. Asian market has ample of
growth opportunities in order to gain better organizational growth. In case of expanding business
in Singapore, it is evident to manage the changes in an effective way (Hill, et al 2013). This is
better for gaining market competencies and various different growth opportunities into the
current market. It is evident for meeting the challenges and gaining market effectiveness
thereafter. This is important for the business organization in dealing with the consequent market
intelligence strategies. These are one of the important parameter in dealing with the appropriate
tasks an organization needs. Harvey Norman stores in Singapore is owned and operated by a
Singaporean company, Pertama Holdings Limited. Harvey Norman and its associated company
hold 80.2% of the company, with a Singaporean sporting distributor, Ossia International, holding
19.8%.
Harvey Norman has a strategic policy to manage the organizational growth and development in
availing long term sustainable growth. These results are important in managing the systematic
growth and development plan (House and Street, 2016). This is important for getting an effective
role while managing market effectives. The market value is created by subsequent growth and

Harvey Norman (Singapore) 10
development in order to gain competency (Verbeke, 2013). Successful marketing intelligence
provides with a motive to manage competition. This provides with a base to make an effective
comparison in between the companies working. It is therefore helping in balancing the gap in the
organization in order to develop an effective plan. These plans are important for gaining better
organizational goals. The purpose of the effective plan is to gain growth inside the organization
while coordinating with the difference (Cavusgil et al 2014; Madsen and Walker, 2015).
Dos and Don’ts of conducting business in Singapore
Do’s
The Singaporean business culture is very competitive with a very high focus on ethics. It is
suggested to focus on the ethical code of conduct in order to manage business competency.
Harvey Norman needs to focus on the ethical norms while conducting business in Singapore.
The business culture is very sophisticated which requires a special attention in order to manage
the organizational values effectively.
Don’t
Harvey Norman should avoid placing the organization near its competitor. This will help in
coming up with better completive services. It is serving as an effective platform in order to gain
market competencies (Angeloska-Dichovska and Mirchevska, 2017).
Key competency of Harvey Norman for expansion in Asia
The multi-retail store outlet is known for its effective market strategies in Australia... In
Singapore the brand has formed an alliance with the local corporation to diversify the revenue. It
is through the effective market strategy that the brand is able to gain market effectiveness. There
are plans that are leading to the conclusion that the brand is planning to expand in Asia. The
primary reason is due to the effective competitive strategies. These strategies are important for
gaining long term market competencies while handling the issues. This is better for the
organization in order to deal with the issues (Hitt, Li and Xu, 2016). The stores operate with a
high level of integrity. They are known across the world for its largely controlled ethical
behavior. They have managed to integrate the franchise mechanism within the Australian

Harvey Norman (Singapore) 11
economy. The international store is operated on the same manner while managing a superior
level of integrity channel (Kim and Mauborgne, 2014). The retail dominance of Harvey Norman
occurred due to a high rate of commission paid to the sales person. These strategies are important
for meeting the consequent result and for developing better organizational results (Wild, Wild
and Han, 2014). This is better opportunities in order to gain market competencies. The
organizational goals are important for managing excess competition in the market. This is better
for managing growth. Asia has fast growing market opportunities with wider results. It is
important for Harvey Norman in order to manage growth. This is important for managing the
excessive competition in order to deal with the excessive market pressure. This is evident for
handling excessive organizational goals. It is important for better marketing opportunities in
order to gain competencies; this is effective in dealing with the issues that need to be managed at
different level. It is necessary for handling competition in the Asian market. This is important for
managing long-term sustainable goals. Harvey Norman follows efficient market strategies in
order to create a distinct market role. There market strategy is to incorporate strategic innovation
in the process so that the organization can gain distinct result. With lots of potential and brand
value, it is possible for the brand like Harvey Norman to establish itself as a potential player.
This is evident for any brand to develop an effective market strategy so as to gain distinct market
goal (Boshyk, 2016).
Challenges faced by the company
The Southeast Asian city-state's focused retail scene isn't new. Long-standing macroeconomic
elements like increasing expenses and an excessive market pressure because of more tightly
remote labourer arrangements heightened rivalry. The ascent of internet business aggravated
those troubles, while, all the more as of late, a decrease in visitor entries in 2014. Government
figures demonstrate worldwide crowd coming to Singapore for the initial 11 months of 2014 as
3.4 percent i.e. 13.72 million. This is expected predominantly to a 25.7 percent decrease in
Chinese guest landings, which are eminently the greatest spenders among travellers in the
Southeast Asian city, the Singapore Tourism Board said.
Due to this, the retail division has intensely dependent on the local tourism industry, Singapore's
retail deals saw a miserable begin to 2014, with month to month decreases through May, and

Harvey Norman (Singapore) 12
government information appeared. With a wide-spread competition and taxation has posed
certain level of challenges for the company. This has evidently become one of unexpected reason
for the company to establish itself in South East Asia.
Conclusion
To conclude, as a franchise store the company, Harvey Norman leases out the stores to the
franchisee and provide them with advertising and administrative services. Gerry Norman is the
visionary of the company who takes all the major strategic decision. The company is very well-
known slogan “go Harvey, go Harvey, go Harvey Norman. The motto of the company
completely supports franchise operators culture in the country of operations. The stores operate
with a high level of integrity. They are known across the world for its largely controlled ethical
behavior. They have managed to integrate the franchise mechanism within the Australian
economy. The international store is operated on the same manner while managing a superior
level of integrity channel. The retail dominance of Harvey Norman occurred due to a high rate
of commission paid to the sales person. Harvey Norman is increasing its strength in Singapore
with a motive to become the number 1 store. This strategy has helped the brand in regaining
market capacity in a well defined way.
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Harvey Norman (Singapore) 13
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