One reason for Nestle’s decision to enter into the Chinese market is to extend its product lifecycle. Western confectionary markets have become rather saturated due to high competition and increased awareness of health issues regarding consumption of too much sugar however in China the confectionary market it growing. Since 2005 it has grown by 63 % to $9.2 bn therefore this is a way for Nestle to increase sales growth and extend its product lifecycle which could yield greater profits.
Another reason could be to gain from a greater spread of risk. As Nestle expands over more countries it will spread risks over more markets and so gain greater stability for example if sales in the West are declining then these could be buffered by increasing sales in the Chinese market and so giving Nestle a more stable business portfolio which could attract greater shareholder investment.
decision1 - huge market/customer base, as country becomes wealthier luxury products will be more popular, boosting economy in china (no eco crisis), long term stability.
2-extend product lifestyfe, europe company (risk of saturation)
Point 2 is good, but Point 1 i think is wrong because chocolates arent luxury goods theyre actually inferior so you would say the nature of the market and quote the stats
Point 2 is good, but Point 1 i think is wrong because chocolates arent luxury goods theyre actually inferior so you would say the nature of the market and quote the stats
although some stats sho that chololate is inferior, (during the recession chocolate consumption increased ) but i dont think it can be classified as inferior... or can it?
although some stats sho that chololate is inferior, (during the recession chocolate consumption increased ) but i dont think it can be classified as inferior... or can it?
some cant such as the upper class chocs but regular bars are a mixture. in any case tho you wouldnt say there a luxury product at all