Market growth strategy in emerging markets (Indonesia) for an online brokerage firm

Abstract

The global online brokerage services industry is a $200 billion business with an estimated annual growth rate of 30%-40%. The industry has evolved over a number of years into a mature and scalable market with strong profit margins. However, with increasing competition and profitability mainly dependent on volume of transactions served and efficacy of customer relationship management, existing players are looking for new avenues for expansion both in terms of product portfolio and geographic coverage. Emerging markets like Asia, specifically Singapore, Indonesia and Malaysia can serve as a perfect markets for geographic expansion owing to promise of strong GDP growth , increasing investor awareness about online trading and associated services and rate of internet penetration. The company in question is a leading online broker based out of USA with annual revenues in excess of $1 billion as of FY 2013. Over a number of years, the company’s main strategy for growth has been acquisitions. The company has recently entered the South East Asian market through an acquisition. The company now seeks to expand its customer base in the region and associated nations. The objective of this report is to prepare a market entry strategy for the client in the shortlisted regions based on market feasibility and growth potential.