With Reference to Mattel and Your Own Research to What Extent Do You Think That a Business Strategy of Targeting Emerging Markets Is a Good One

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With reference to Mattel and your own research to what extent do you think that a business strategy of targeting emerging markets is a good one (40marks)

An emerging market is a country which is in the process of rapid growth and industrialisation and it can consist of the BRIC countries, which are Brazil, Russia, India and China.

Targeting an emerging market could be a good strategy. This is because if the current market the business is operating in is in saturation, it could be then justified for them to expand in to these emerging markets as this gives them an escape route away from a saturated market or if the market is in recession to allow them to maximise sales revenue and allow them to survive in a recession. This is because we see that emerging markets usually have a quickly growing middle classes with a strong economic growth meaning that they would be able to escape the worsening current market and move to sell in somewhere with a stronger economy and a larger middle class. Meaning that this middle class is more likely to have money to spend on the new businesses products or services. Also meaning that the growing middle class is resulting in a culture shift, so there could be higher demand for their products or services in the emerging market. As a consequence to moving in to these emerging markets it also means that there brand name and image is growing and becoming more well known in these new markets. We see this with JLRs move to India as the Indian company TATA motors brought JLR, with this market development strategy they then aimed their products of selling luxury cars to the growing middle class of this economy. Before they entered this market, companies that previously owned JLR could only make a loss but once entering the emerging market of India they have since managed to gain £41.6million. However emerging markets can sometimes not…...

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