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Apr 3, 2024

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MKT B462 Strategic Marketing Assignment 1 MKT-B462_Assignment 1 P.1
Part A- Corporate level strategies During last two years, CK Hutchison Holdings has shown commitment to the innovation, strategic diversification, and adapting according to changing market dynamics. The comparison of corporate level strategies in both years show that CK Hutchison Holdings continued the commitment to maximize total return for stakeholders by focusing on dividend growth and sustainable earnings. In both years, the company pursued targeted capital investments along with a disciplined revenue growth management. Moreover, company also maintained focus on technology transformation for revenue diversification in both years. In 2023, CK Hutchison demonstrated dedication to maintain the financial strength, including the long term investment grade ratings. The company considered potential telecom divestitures and strategic alliance with technology partners, and prioritized sustainability to accelerate the transition to net zero economy. In both years, company strengthened the presence through different means (CK Hutchison, 2023). Like in 2022, CK Hutchison Holdings expanded into Middle East, while, in 2023, the company considered potential divestitures, but commitment to technology transformation remained constant (CK Hutchison, 2022). A key difference is that in 2023, company paid more focus on maintaining strong liquidity, indicating a possible strategic shift to more conservative side in response to changing market conditions. The overall analysis suggests that CK Hutchison's corporate-level strategies in 2022 and 2023 could be characterized by technological innovation and sustainable growth, with difference in expansion strategies, which reflect the strategic flexibility. MKT-B462_Assignment 1 P.2
Part B — Review of resource portfolio 2.1. Geographic reach through well-diversified portfolio CK Hutchison has a well-diversified portfolio of strong performing brands that enable the parent organization to fuel growth and expand the market reach geographically. The 2022 annual report shared how CK Hutchison expanded its presence in Middle East, reflecting the brand’s market recognition (CK Hutchison, 2022). While in preceding year, A.S. Watson Group partnered with Grab in Southeast Asia to expand the market reach (AS Watson, 2021). Following graph shows the EBITDA earned by CK Hutchison in 2022 in different geographic locations: Source: Seeking Alpha (2023) This extensive global reach is not only valuable, but also rare. For instance, the successful entry in the Middle Eastern region in 2022 shows the company has successfully positioned itself as a trusted brand, making expansion easier in a culturally distinct market. However, managing the wide geographic reach also increases the company’s vulnerability to the external market conditions, increasing the need to continuously monitor and adapt marketing strategies accordingly (Fornes et al. 2018). Considering the consumers’ rising preferences for MKT-B462_Assignment 1 P.3
differentiation, the company must integrate personalization, flexibility, and adaptability in the future marketing strategies to acquire customers and fuel market growth. 2.2. Technological innovation CK Hutchison shares a strong commitment to the technological innovation. As an evidence, the annual report (2022) shares details about the activation of 700MHz spectrum band on 3Hong Kong's 5G network at 3Hong Kong (as subsidiary of CK Hutchison Holdings), suggesting how CK Hutchison is leveraging advanced telecom technologies to offer high speed connectivity. CK Hutchison has also collaborated with XtalPi to launch AI tumor vaccine research and development platform, which will drive the tech innovation in healthcare sector (PR Newswire, 2022). The tech innovation capabilities are not only valuable but also rare in market, which the company leverages to differentiate itself and gain sustainable competitive advantage. CK Hutchison's commitment to technological innovation lays strong differentiation basis, as these innovations offer a unique selling proposition that company must focus upon in its future marketing strategies. 2.3. Strategic partnerships Other than geographic reach through high performing brand portfolio and technological innovation, CK Hutchison’s ability to successfully develop strategic partnerships is a valuable resource, as it has played a key role in business expansion. In 2021, the company partnered with Grab in South Asia, which successfully expanded the brand’s reach in the digital eco-system (AS Watson, 2021). This strategic partnership enabled the A.S. Watson (CK Hutchison subsidiary) to leverage the extensive customer base and network of Grab, which enhanced company’s online presence. In 2023, CK Hutchison partnered with Oracle to streamline its transportation supply chain (CK Hutchison, 2024). In 2022, CK Hutchison also partnered with The Boeing Company and Terminal Investment Limited Sàrl to expand the presence in the port logistics and aviation (Hutchison Ports, 2022). These successful strategic partnerships enable the company to accelerate the business growth. Such strategic partnerships are valuable and rare in the industry because it is hard for competitors to pursue such partnership opportunities with giants like Oracle, Boeing and Grab require extensive investment, trust, and negotiation skills. Moreover, developing strong relationships with the partners, and keeping each strategic partnership aligned with the MKT-B462_Assignment 1 P.4
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