In: Finance
In your opinion, which emerging market represents an ideal opportunity for company diversification? In your initial post, identify the emerging market and the characteristics of a company that would be well-positioned to consider it as an opportunity. kindly explain in detail and add references.
I am answering this question according to the guidelines of chegg without providing any references as Chegg doesn't allow plagiarism.
1. In my opinion, Indian markets are offering with an ideal opportunity for company diversification because India is a highly underpenetrated market and it is offering with better opportunities for diversification of the business by establishment of additional business in Indian markets and Indian markets are always trying to attract foreign direct investment into the country and they are also meeting up with larger companies in the world in order to establish their branch in India as per the make in India initiative by the government.
I think that Apple should be considering to open large scale production in India because the manufacturing production of the Apple would be shifting from the China as per the trade war between America and China and it should try to consider Indian markets as an alternative because it is also offering with higher customer base and better diversification opportunity.
Characteristic of Apple would be to reduce the cost and it will also try to target another market and there are subsidies and tax deductions which are also allowable by the Indian Government and it should be considering the advantages because it would be leading to lower cost for manufacturing processes in India and it would be leading to higher profit margins. It would also be helping Apple to gain larger share and it can acquire large market share of Asian subcontinent.