Asiasports: Hockey Night in Hong Kong

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Asiasports: Hockey Night in Hong Kong

Determining the Future Business Strategy of Asiasports Limited In March of 1999 the primary decision makers of Asiasports found themselves at a crossroads. “Barnes, Weir, and Gribble had to make decisions about whether the company should promote hockey outside of Hong Kong and its choice of sports properties. An implementation plan also had to be developed for the chosen strategy” (Delios 1). Although every one of their sports properties was profitable except for the World Ice Hockey 5’s event, Asiasports still experienced a loss in 1998 operations. Therefore Barnes and the primary shareholders of Asiasports were faced with a difficult question regarding the direction of their future business
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Furthermore, Asiasports has acknowledge that they typically receive 50 per cent of their income from player fees in activities conducted in Hong Kong, but total player fees for the 1999 tournament were only 148,759 (HK$) compared to sponsorship revenue of 542,000 (HK$). They may also wish to consider raising player fees for the tournament since it is an inelastic experience in the Hong Kong marketplace. Although it is difficult to evaluate the overall financial status of Asiasports without more financial information on their other operations, it is clear that they must better manage the costs of the tournament and/or increase their revenue streams relating to it. External Environment Analysis Asiasports has focused their operations primarily in Hong Kong for their first three years of existence. However they are now considering geographic diversification options. These options include setting up hockey leagues or developing and expanding tournaments in other Southeastern Asian locals such as: Bangkok, Manila, Taipei, Singapore, and Ho Chi Minh City. A CAGE Distance Framework analysis and Porter’s Diamond examines the external environment in Hong Kong and Southeast Asia. CAGE Distance Framework: Appendix 3 A CAGE Distance Framework analysis shows the cultural, administrative, geographic, and economic distance between Hong Kong and the other countries in Southeast Asia where they are considering expanding their operations. In an

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