Gold's Gym Expansion to Asia

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GOLD’S GYM – PROPOSED EXPANSION TO ASIA

Table of contents

Page

1. Background of the company _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 04

2. PESTLS analysis and SWOT/5 Forces Analysis _ _ _ _ _ _ _ _ _ _ 05

3. Factor score analysis _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 17

4. Analysis of the cultures _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 18

5. Analysis of the market environment _ __ _ _ _ _ _ _ _ _ _ _ _ _ 21

6. Analysis of the market mix _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 26

7. Trade agreements and laws affecting the expansion _ _ _ _ _ _ 32

8. Market entry strategy and recommendations _ _ _ _ _ _ _ _ _ _ 36

9. Bibliography and
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10. We arrived at a cumulative score base score based on the scores of the 3 analysis above.

Note: - At the start of the analysis we used diamond theory by Prof. Michael Porter to answer the million dollar question? Should Gold’s Gym concentrate expanding across borders if so? If so, does it have the necessary competencies to achieve that?

We have concentrated more on political analysis because of the novelty of the operation.

Political/Legal Analysis

1. Political Stability

Political uncertainty/instability is considered an investor’s worst nightmare. This influences the Foreign Direct Investment (FDI) by companies in to a particular country.

With permission from Price Waterhouse Coopers (PWC), we used Political Hotspots Map software (created by PWC in collaboration with Eurasia Group) to identify the political risks of a country.

Link to the Political Hotspots Map –

http://www.pwc.com/images/gx/eng/about/svcs/advisory/pwceurasia/index.html

Singapore received a score of 6/6 with a high political stability rating. Malaysia received a score of 3/6 with a medium-low political stability rating due to recent political uncertainties. Indonesia received a score of 2/6 with low political stability rating.

Political stability results in extension of government policies which enable companies to predict and adapt to the environment well.

2. Extension of

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