HSBC Ireland : strategies to address business and cultural challenges

• Main Authors: Chew, Paul, Ambo Tuwo, Dang Tung Lam, Daw Myo Nandar
• Other Authors: Koh Siew Kuan
• Format: Theses and Dissertations
• Language: English
• Published: 2010
• Subjects: DRNTU::Business::Finance::Banking
• Online Access: http://hdl.handle.net/10356/41813
• Institution: Nanyang Technological University

The Republic of Ireland has been an attractive location for many foreign direct investments by large MNCs and Banks due to its Celtic Tiger years of strong economic growth. Ireland's low corporate tax rate, young and educated workforce, well developed infrastructure as well as its strategc location to serve the EU region has attracted HSBC Group, based in London, to set up its EU headquarters in Ireland. HSBC Ireland therefore serves not only Irish customers but customers from the entire EU. HSBC was aware that the toughest competition lied in the retail-banking sector where the local Irish Banks dominate the market. In terms of brand awareness within Ireland, HSBC lags behind its local competitors. However,HSBC's comparative advantage lies in its motto of being the "World's Local Bank". It's "Glocalisation" strategy, one that thinks globally but acts locally, has been a very powerful and successful strategy in doing business in any part of the world. HSBC Ireland adopts this strategy in doing business in and with Ireland. This strategy has allowed them to target a niche market - the middle to high income earners in Ireland, who coincidentally are also more globalised in their perspective and able to appreciate the value proposition of HSBC's Glocal strategy. HSBC Ireland therefore was able to rise above its competitors to provide their Irish customers a global buffet of products and services tapping from their network of banks worldwide, while appealing to the cultural needs and sensitivities of the individual customer. With regard to the effects of the Global Financial crisis on HSBC Ireland, HSBC's more conservative banking policies has resulted in them not being as adversely affected by the global financial crisis as some of its competitors in Ireland. Its relatively stronger position provides opportunities to strengthen its competitive advantage in Ireland by expanding brand awareness and strengthening its brand name in Ireland. Ireland's demographics are also changing with increasing number of immigrants from Eastern Europe and Asia.