Sun life case
Uploaded by jasonmees on Jul 06, 2006
Table of contents
1: Summary 2
2: Main Contents of the report 3-20
2.1: Introduction 3
2.2: Problem and the followed procedure 4
2.3: Sun Life Financial from strategic managerial viewpoints 4
2.3.1: Sun Life Financial’s strategic logic 6
2.3.2: SWOT analysis 10
2.3.3: PEST analysis 13
2.3.4: The attractiveness of the Chinese insurance market 17
2.3.5: Strategies and city choice 18
3: Results, conclusions and recommendations 22
4: Bibliography 23
1. Summary
This report looks into the Chinese insurance market for Sun Life Financial in order to evaluate whether it is wise for the company to enter the Chinese market and if so, where to enter. To research whether Sun Life Financial is internally ready to enter the Chinese market or not, there was chosen to use the strategic logic theory.
The Chinese government imposes foreign companies to form joint ventures if they want to be active in the Chinese market. In this way, domestic companies will benefit from business development as well. Sun Life Financial strategically chose to form an alliance with Everbright, because of Everbright’s established distribution network and good relations with the government.
Sun life Financial’s business concept consists out of already developed products in other markets, adapted to Chinese customers. The biggest potential customer base can be found in urban areas where people tend to be more westernised and richer. The products in these areas will be offered by means of personal selling carried out by a specially trained sales force. The organisation concept shows that Sun Life Financial can use their management expertise, financial strength and extensive customer service experience to support their business concept. Furthermore, it could use Everbright’s established distribution channels and local market expertise. Both parties have an equally share in the joint venture. Stakeholder development with the government is the most important core process to be undertaken by Sun Life Financial, since in the future they would like to make a strategic move into the wealth management business and pensions. The SWOT analysis shows that potential strength and weaknesses balance each other out, but according to our opinion, the strengths are stronger than the weaknesses. Opportunities are based on a big market potential, whereas threats are mainly due to the communistic history of the country. From the PEST analysis one can conclude that political factors are still a bit unstable (bureaucracy and market restrictions), the other factors have seriously improved.
The Chinese insurance market is highly attractive because of the fact it is a nearly untapped market with high growth potential. In addition, market shares and profits can be obtained relatively easy. Entering the Chinese market...