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Emerging economies v. existing markets 20 marker - Coggle Diagram
Emerging economies v. existing markets 20 marker
Definition of emerging economies
- where a country develops from high economic growth by new trade markets.
Emerging economies can lead to faster growth
Myface is in a place where it needs to grow rapidly to show its relevance in comparison to other social media networks and because the users are falling.
Breaking through with emerging economies will account for the concerns that the board at Myface have. The market they are currently operating in has become saturated, anybody who could be signing up has already done so and teenagers also view it as old news.
Emerging economies have large populations with lots of money at hand to be able to purchase multiple networks, which dispute concerns shareholders have from accessing new countries. For example with China, while they already have an established network, it is an emerging economy which is benefiting from a high income, placing it in a position where the population would be inclined to use more than one social media network.
This is reflected by growth in consumer spending within emerging economies has outpaced developed countries every year since 2000. This suggests how strong the economic growth is influenced from emerging economies and therefore the extent it could help Myface grow.
IDO: the success of the growth from emerging economies is dependent on the income levels their consumers have. There may be an assumption everyone in an emerging economy has a comfortable salary where this may not be true.
Emerging economies can lead to marketing opportunities
Emerging economies typically have affluent populations. This tends to increase the level of consumer needs that Myface have to acquire for.
The high economic growth of the country means that the consumers wealth will also be increased meaning high imports of consumer goods and new infrastructure will be needed.
This will help Myface expand further as this leads to more business opportunities. For example, a wealthier target population will more likely purchase more perks of the network which will add to the profits gained and also may create a new USP.
IDO: as emerging economies are home to 85% of the population and 90% of under 30s (people who are most likely to invest in Myface), operating in them is highly competitive. There it depends on how well marketed the network is advertised in comparison to already established ones such as instgram.
Staying in an existing market reduces risk of misunderstanding a new market
Entering developing countries can be flawed as countries may already have established networks or only have a limited amount of internet access.
Instead Myface could focus on expanding into existing markets like Bulgaria and Latvia, which the country had already entered a few years ago.
Having an understanding of a 3 year plus market will make the advertising, the introduction/development of the network and the price or perks much more accustomed to the society norms of those markets.
Would be a more reliable way for the business to be expand, and withhold Myface relying on 45% of British people logging in as more countries would be invested. As they already operate in those markets customers would be more loyal.
IDO: how well received the network is. The countries that the shareholders want to invest in are low income countries so may not be able to afford the investment.
A: Emerging economies more sufficient for Myface.
J: This is because in order to survive currently Myface must begin to grow, and they are likely to gain more opportunities by pursuing emerging economies. The markets that Myface currently operate in are low income countries, and a social network is not a necessity so people may be less inclined to purchase. This is particularly relevant if there is an already established one.
M: the most important reason is because once established in new high income markets the new opportunities they receive will allow Myface to adapt their services to an older audience. There would be less competition as the only older social network stands as Facebook, whereas with the younger population there is TikTok, Instagram, Snapchat and BeReal.
I: depends on how well Myface stands itself out from Facebook to reach further expansion
I: it is highly dependent on external influences. For example, higher inflation would lead to less spending. Increased interest rates make people want to spend less.