1) SWOT Analysis
Strength:
• Experience that Sun Life Financial have in insurance business – Started since 1865
• Experience in expanding into new foreign market
• Had a representative office in Beijing since 1992
• Wide range of products available to customers to suit their need
• Ability to customize package for high net worth individuals – More effective and efficient in generating profit
• Distribution Channel
Weaknesses:
• Restriction to expansion
• Not getting the full license for the joint venture as on year 2000
• Product and service not customize for China insurance market
Opportunities:
• A market to tap on the untapped potential due to its population size and underdeveloped business in some industries
• China is 2nd to United States on purchasing power parity basis
• Low penetration of insurance in China
• Possible growth rate of 15% over 10 year period for revenue
• Possibilities to be granted license to do business in new cities by China
• People buying insurance for security purpose due to the decrease in job security – No more iron bowl
Threats:
• Level of bureaucracy in obtaining licenses and restricted on type of products and service allowed
• Corruption & piracy
• Possible disagreement occur between venture with Everbright
• No same strategy can be apply throughout China due to demographic differences
2) By ...