A study on business development of global service providers in Asia：“Glocal management” of HSBC

Insurance Research Department 　　　　　　　 Executive research fellow & General Manager 　　 for Asia Tomikazu Hiraga

A growing number of Japanese companies are expanding their businesses globally, especially in emerging markets in Asia, where business prospects are fueled by strong economic growth expectations and rise of the middle class. Companies in Japan’s service sector following manufacturing sector, which have expanded into foreign markets ahead of other industries, are now entering such markets.

However, when it comes to activities of service-sector companies (hereinafter referred to as “Service Companies”) in Asia including banking, insurance and retail sectors, major Western companies have already established a strong presence. Thus analyzing and understanding their strategies and activities can provide useful implications for the business development of Japanese Service Companies in Asia, and contribute to their sales and profit growth.

To this end, in this first paper I present a case study of HSBC as a typical financial group led by a bank. I examine factors contributing to its business success worldwide and in Asia in particular, omitting a detailed analysis of its business and financial condition due to space limitations. I will look at how HSBC has put into practice “Glocal Management” under its well-known slogan as “The world’s local bank” in its actual strategies and business activities.