Hong Kong Shanghai Banking Corporation (HSBC) Strategic Marketing
HSBC
Businesses are continuously evolving to respond in every customers needs. To be specific, the Hong Kong Shanghai Banking Corporation (HSBC), one of the best financial institution developed different marketing strategies to maintain competitiveness. Actually, HSBC Holdings, a British financial holding company with origins in Hong Kong and Shanghai, where offices were opened in 1865 under a special charter which allowed Hong Kong rather than London as a headquarter location ( 2000). (1998) related that the bank remained an eastern force until the 1950s, when overexposure to the crown colony and its textile industry pointed to a need for geographical diversification. HSBC was established to finance the growing trade between China and Europe, and is one of the largest banking and financial services organizations in the world. Its international network comprises over 9,500 offices in 76 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East, and Africa ( 2006).
HSBC was in intense competition all over Asia with Chase Manhattan which showed interest in a small bank in India and Malaysia. HSBC pre-empted by purchasing the bank in 1959 ( 2000). In the same year another defensive acquisition became necessary, when an investor group tried to buy the British Bank of the Middle East, strip its assets and sell the branches to HSBC, which did the bulk of its Middle East business through the bank (2003). A few years later a banking crisis erupted in Hong Kong. HSBC was not seriously affected but Hang Seng Bank, the colony’s second largest, was about to flounder in a run. Chase offered help but Hang Seng preferred HSBC, because of its local roots, and sold it a majority stake in 1965 ( 2001). These three deals illuminate the difference between corporate strategy and the realities of the marketplace ( 1991).
Diversification had taken a beating although it was only in 2000 when acquisitions in Asia became topical again, in a small way. Two of them were part of the private banking drive, PCIB Savings Bank in the Manila area and Taiwan’s leading asset manager China Securities Investment Trust Corp. in 2001, to be followed by an 8 per cent stake in the Bank of Shanghai (2003). HSBC had returned to its roots. Afterwards many more events unfolded including the turnover of Hong Kong to china this prompted HSBC to transfer headquarters to United Kingdom ( 2003). This company has then been developed successfully to become a true global bank, being the largest bank in Hong Kong and the largest foreign bank in China. It emphasizes the importance of building shareholders’ value, and believes in the values and talents of its own employees, which are employed and spread all over the world. HSBC wishes to stay ahead in a very competitive global financial market, and by maintaining a great brand name, an established customer base, good and loyal employees, tight control over operating costs and constant adjustment of business strategy to cater to customers’ needs, it maintains its success in its leadership position in Hong Kong’s highly competitive banking industry. (2004) stated that HSBC occupies a unique position in the Hong Kong banking sphere. Besides being responsible for the bulk of note-issue, HSBC has some other attributes, which are now associated with a ‘central bank’ in where it acts as a banker to the government, although not exclusively. With this consideration, this paper will be discussing the strategic marketing practices of HSBC.
PESTLE
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5 Forces Model
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Marketing Mix (7 Ps)
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Service Quality and Relationship Marketing of HSBC
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Market Segmentation
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Competitiveness
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Synthesis
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Credit:ivythesis.typepad.com
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