Key Considerations for Entering the Hong Kong Market
Kilpinen, Annabella (2023)
2023
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2023112932826
https://urn.fi/URN:NBN:fi:amk-2023112932826
Tiivistelmä
The objective of this thesis was to examine the key factors necessary for starting or expanding a business in Hong Kong. The key elements included studying the Hong Kong market and economy, exploring the city’s major industries, understanding the stages of the establishment process, and exploring different business structures. Additionally, cultural topics associated with business in Hong Kong played an important role in order for the reader to get a comprehensive and in-depth understanding of the business environment.
The main research question aimed to identify the critical aspects for successful operations in the Hong Kong market, while the three sub-questions focused more on the smaller details of joining the market. The thesis was divided into two parts: the theoretical part and the research part.
In the theoretical part, the author studied Hong Kong both as a city and as a market economy. Hofstede's six dimensions of national culture were used as a comparison tool to study the cultural differences between Hong Kong and Finland in the business world. The major industries were introduced, and the Strengths, Weaknesses, Opportunities, and Threats of the city’s economy were thoroughly researched. Next, the suitable business entities and the necessary documents and permits were introduced. Finally, the theoretical part concluded with a 10-step instructions for establishing a business in Hong Kong.
The research part used qualitative research method and personal interviews were conducted. Five experts were selected based on their extensive and comprehensive understanding of Hong Kong's corporate culture, coupled with their experience in long-term operations within the Hong Kong and/or Asian markets. The interviews strongly supported the theoretical framework, with many of the discussed themes aligning with the insights shared by the experts. The research section concluded by presenting final outcomes with personal quotes from the experts which provided a nuanced perspective and added depth and credibility to the research.
The research results show that Hong Kong is a favourable place for doing business due to its strategic location, business-friendly environment, and low taxation. Setting up a business is simple and straightforward, although some challenges may arise, such as the process of opening a bank account. Additionally, the city's high cost of living is a notable factor to consider. Because Hong Kong contains many different modes of operation and cultural characteristics, that means that successful entry into the Hong Kong market requires careful planning, diverse networks, and a solid understanding of local business practices.
The main research question aimed to identify the critical aspects for successful operations in the Hong Kong market, while the three sub-questions focused more on the smaller details of joining the market. The thesis was divided into two parts: the theoretical part and the research part.
In the theoretical part, the author studied Hong Kong both as a city and as a market economy. Hofstede's six dimensions of national culture were used as a comparison tool to study the cultural differences between Hong Kong and Finland in the business world. The major industries were introduced, and the Strengths, Weaknesses, Opportunities, and Threats of the city’s economy were thoroughly researched. Next, the suitable business entities and the necessary documents and permits were introduced. Finally, the theoretical part concluded with a 10-step instructions for establishing a business in Hong Kong.
The research part used qualitative research method and personal interviews were conducted. Five experts were selected based on their extensive and comprehensive understanding of Hong Kong's corporate culture, coupled with their experience in long-term operations within the Hong Kong and/or Asian markets. The interviews strongly supported the theoretical framework, with many of the discussed themes aligning with the insights shared by the experts. The research section concluded by presenting final outcomes with personal quotes from the experts which provided a nuanced perspective and added depth and credibility to the research.
The research results show that Hong Kong is a favourable place for doing business due to its strategic location, business-friendly environment, and low taxation. Setting up a business is simple and straightforward, although some challenges may arise, such as the process of opening a bank account. Additionally, the city's high cost of living is a notable factor to consider. Because Hong Kong contains many different modes of operation and cultural characteristics, that means that successful entry into the Hong Kong market requires careful planning, diverse networks, and a solid understanding of local business practices.