Singapore consists of the island of Singapore and number of few tiny islands. It is located just north of the equator off the southern tip of Malaysia. Singapore, a highly developed and successful free market economy, enjoys a remarkably open and corruption-free environment, stable prices, and one of the highest per capita GDPs in the world. Since 1959, Singapore has been governed by the People's Action Party (P.A.P), and from 1990 up to now, the prime minister has been Lee Kuan Yew.
Singapore's success in attracting foreign investment is undoubtedly spectacular and its ability to exploit FDI for wider economic development may provide lessons for other countries. This paper examines the material linkages between foreign-owned companies and suppliers based on the island. Backward linkages to indigenous suppliers of materials have traditionally been considered one of the main ways in which FDI develops the host economy (Hirschman, 1958).Henderson and Appelbaum (1992) claim FDI is only significant for economic transformation when it stimulates local firm production linkages and/or results in shifts to higher value-added forms of production within the subsidiaries of multinational enterprises (MNEs). Furthermore, it is generally accepted that the level of local supplier interaction is perhaps the key indicator of corporate embeddedness (Dicken et al., 1994).
Another reason for the importance of linkages is the fact that linkages (i.e. supplier firms) may actually outlive the initial investment made by the MNEs, therefore contributing to long-term economic development.Therefore, Singapore is possibly the best example in the developing world of FDI-led economic development (Huff, 1995).Foreign Direct Investment (FDI) in the Singaporean EconomyIn fact, it would be accurate to say that MNCs play a bigger role in Singapore than in almost any other economy in the world. The massive amount of foreign direct investment (FDI) brought in by the MNCs has served as an engine of growth ever since the country's independence in 1965.
Although both developed and developing economies compete fiercely for FDI these days, Singapore adopted a liberal open-door policy toward foreign investors long before it was fashionable to do so.The combination of a strongly pro-FDI government and generally favorable environment meant that Singapore has been and continues to be a highly attractive location for foreign capital.We will focus in Mind;Body plc, a health and fitness club chain of Greece, investing in Singapore by building a new Club. After evaluation over several factors the Singapore will be analysed with a PEST analysis. Afterwards different possible market entry Strategies will be analysed.A target market will be chosen and Mind;Body will be positioned in its environment.
Therefore, the marketing mix adapted to this situation will be created in order to maximise the chances of high profit in this new market and make the most of this opportunity.Mind;Body Plc is a company providing high standard health and leisure services in Greece. Mainly offers the following facilities: a gym and fitness area, a swimming pool, squash courts, tennis courts, a health ; beauty centre as well as a restaurant. Our clients are typically middle-high to high income personnel over the age of 30 and the business's main sources of income come from joining fees and monthly subscriptions.Our two main competitors in Greece are:* Hermes Place which provide a wide variety of classes, equipment and facilities. They have over 230,000 members, boasting 40 health clubs across Greece and a further 10 abroad.
* Insports which is slightly smaller with over 200,000 members and 12 newly opened clubs over the last year, bringing their total number of Health and fitness clubs to 50.Both of them have luxurious facilities and offer high quality services.Why Mind&Body wants to go international?For various reasons, Mind&Body head-quarters want to expend internationally. One of the main factors that motivate a firm to internationalize its activities is to expand their profit margin.
(Czinkota, Rondkainen, 2001) Expansion into new global markets will bring to Mind&Body economies of scale, and massive numbers of prospective new customers. Yet it's a process filled with pitfalls, driven by cultural differences and operational challenges. (www.executivesonline.co.uk)Analysis of the potential marketIn most business activities, one factor rarely accounts for any given decision.
Usually a mixture of factors result in a firm taking steps in a given direction. This is true in internationalisation; motivation consists of a variety of factors both pushing and pulling firms along the international path. (Taner et al. 1985).
