CASE STUDY - SUN LIFE FINANCIAL: ENTERING CHINA
INTRODUCTION
In early 2000, DikranOhannessian, Sun Life Financial's vice-president, China, was flipping through piles of consultants' reports on the plane from Toronto, Canada, to Beijing, China.
As Ohannessian got up to stretch, he thought about what had been achieved: a representative office in Beijing, valuable contacts with the Chinese government and business people, and an agreement to partner with a well-established Chinese financial services group. He knew there were many major milestones ahead, such as forming an entry strategy, choosing the geographical market area in which to operate, while keeping an eye on the financial viability as well as all the necessary hurdles to obtain a business license in China.
Read the article and answer the questions with paragraph. One question one paragraph.
1. Was it a good time for Sun Life Financial to pursue China market? Why?
Note you could analyze the following questions using PEST and Porter's Industry Analysis Framework as guidelines. A good analysis should answer the following three sub-questions: (1) Is China a strategically important market and why? What are the potential opportunities and threats/costs? (2) Does Sun Life Financial has internal capability to exploit the opportunities and overcome the threats/entry barriers? Why? (3) Overall, what are the pros and cons of entering China?
2. Why did Sun Life Financial choose Everbright Group to be their partner?
3. If you were Ohannessian, which city would you choose? Why? Specify your criteria to evaluate which city to choose?