Emerging markets BUSS4 examples

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  • Created by: Amy Bird
  • Created on: 15-06-13 14:07
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  • Emerging markets
    • Dyson
      • lower fixed costs
      • Moved to Malaysia, cut 800 jobs
      • Suppliers are based in the Far East, plan to target more Far East countries
      • R&D will remain in the UK with 1000 jobs
      • UK workers cost £9, Malaysaians cost £3
      • UK office space is 3X more expensive
    • Bank call centers
      • not the best move
      • banks moved their call centres to India
      • lowered customer service, due to language barriers
      • Natwest, marketed them selves as being the only bank with an English call center
        • increased their profits, giving them a USP
    • Volkswagen
      • reduced risk due to recession
      • Sold 8 million cars in a year for the first time ever because of its expansion to Brazil, India and China in the recession
      • Targeted the markets with smaller cars
      • Production for Indian car moved to India, cars are locally made
        • contributes to their economy so they have the finance to but the cars
    • China grocery market
      • rapid demographic growth
      • China has one of the highest growing populations, increase in demand for food
      • China will be worth £918bn at 14.8% annual growth
      • retailers will be locating in major cities but also second and third tier ones
    • Starbucks
      • Expand globally
      • forming an alliance with TATA beverages
        • 50-50 split in everything, 50 stores by 2012
      • $170m café market will grow 30%pa which Starbucks hope to fill
      • Failed in China due to Chinese only drink 3 cups of tea on average a year

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