With Reference to Your Own Research and the Item Above, to What Extent Do You Think That Targeting Emerging Markets Such as China Is the Best Way for Businesses to Achieve Profit Growth?

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– With reference to your own research and the item above, to what extent do you think that targeting emerging markets such as China is the best way for businesses to achieve profit growth?

An emerging market is a market which is experiencing rapid growth and becoming highly profitable which becomes open to many businesses to enter. Achieving profit in China can be achieved through many ways by increasing revenue through changing the way the business operates or to operate as a joint venture. By doing this businesses that operate in China are able to benefit from their profit growth by becoming more well-known. There are exceptions however where business have become successful in achieving profit growth because of operating either unethically or non-environmentally friendly. There are also arguments and examples of business that have operated in China, who have not become successful from having targeted an emerging market because of vast amount of competition that is present.

Targeting emerging markets in China has shown to be one of the best ways to achieve profit growth for businesses which sell food and drink, such as Yum Food Brands. China, having accounted for almost 40% of its entire company, was able to become a huge success by having KFC, its biggest fast food chain, reinvent its menus so that there was a wide choice for the 1.3b Chinese population who were are very experimental with western foods and brands. Through having a sheer size of population who like to try western foods offers the potential for fast food businesses to increase profit growth because KFC was able to improve its revenue growth by an extra £60 million in 2013. This increase in revenue suggests that the firm has increased its profit growth and so which means that businesses are also able to increase their market share. Growth by increasing their profit and therefore market share…...

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