HSBC attempted to position itself by approaching each market in a different way. This was through the understanding that every market has individuals with different cultural view points. As a result, developing different entry strategies into these markets was of paramount importance. To attain this, the bank opted to adopt the structures and systems used by the other banks in the local market involved. It deviated from using an international’s entity approach. A lot had to be done in these markets. Among them is having a clear understanding of the cultural practices which was vital based on the business model and market entry strategy being used.
HSBC derives several benefits from such a positioning. This includes neutralizing local bank’s competitive advantage based on knowledge of the market. Most international organizations fail in local markets due to stiff competition from local banks. Local banks usually have the advantage of market knowledge. However, HSBC’s positioning prevents the organization from becoming a victim of this scenario. Another benefit that accrues to the organization is consumer loyalty. Consumers are usually willing to remain loyal to those companies that tend to understand what they want, and deliver their services in the most preferred manner.
An Arab company would choose HSBC due to its variety of offerings. The company targets different consumer niches by offering unique services and products. This form of consumer segmentation means that every consumer in the market is well catered for. Regardless of the nature of business or company, there are those services that are likely to favor any entity. HSBC also understands the Arabian culture very well. It has a clear understanding of the expectations of its clients. This would make it easy for any business entity to operate with the bank. Financial advice that will be offered would be relevant to the local market. This would present a huge opportunity for these companies to grow and expand their businesses.
Some Arab companies also tend to be very rich. It is always a norm for such companies not to entrust their financial dealings with the local banks. HSBC would be a favorable preference since it has premier services for high-value consumers. This brings the desired security and assurance to such companies.
For a company operating in a single Arab country, it stands to benefit from expert advice on financial dealings. This would be on the best and productive investments to make among other things. This is one of the services offered by HSBC. It is a global bank with a local mode of operation hence meaning it has very competent staff that would be of great help to this kind of companies. Their understanding of the country’s culture would also play a vital role in ensuring that the advice provided is of significant value.
A pan-Arab company is involved in a given trading block within the Arab region. Operating at this level requires sufficient funds and other form of resources due to the stiff competition from other companies involved. HSBC has cash reserves that enable them to offer larger business loans compared to other local banks in the area. This will benefit such a company since having this amount of funds at its disposal will ensure efficient financing of all the projects involved. It will create a great opportunity to mount stiff competition on other organizations involved.
A multinational company would benefit based on the nature of market analysis it would receive from the bank. HSBC is conscience of the people’s culture hence it is aware of the nature of investments that will propel a multinational company to succeed in the market despite the barriers that are available. Lack of market knowledge has always been a major stumbling block for many multinational companies operating in foreign countries.
|Gender||There is no limitation. It can be a male or female.|
|Religion||Must be a Muslim|
|Demographic Skews||This incorporates all the individuals both the young and the old. It also involves both the high and low income earners.|
|Credit worthiness||The credit worthiness of the customer must be above average (above 50%)|
|Major Products/Services||All Islamic financial services and products.|
|Current Occupation||There is no limitation to the occupation of the individual. Any occupation is accepted so long as it is legal.|
Targeting such a client would not be difficult based on the bank’s operational strategy. One would use the company’s positioning strategy as way of luring any potential client. It would be a matter of convincing the clients that the bank understands what they want based on its business model. The variety of Islamic financial services being offered would also be used as a way of attracting these clients. The company already has an internationally recognized brand. Using this brand during marketing campaigns would be effective. Most people like being associated with the best organizations available when it comes to financial dealings. There is assurance of quality services due to the positive global reputation.