Market Expansion and Segmentation factors Essay Example | Topics and Well Written Essays - 500 words

Market Expansion and Segmentation factors - Essay Example The economic context of the potential market is equally important in the decision-making process regarding the market expansion. From a critical point of view, the economic conditions of a given region will shape the consumption pattern of the people living within the market frame. In this case, therefore, the company should consider expanding into areas where the employment rate is relatively favorable. An employed society will have a better consumption power, which will increase the estimated profit margins of Runjhun Jewelry. Specifically, the expected economy should be a middle-income economy, which is characterized by a society with disposable income. On the need as well as the utility, most luxury goods tend to thrive in markets where the people have disposable income. Political and legal factors The political environment is equally imperative in the identification of new markets. Governmental policies regarding foreign direct investments affect cross-border expansions of various companies. In this case, therefore, the given market should have fair governmental policies as well as reduced tariffs, which act as impediments international trade and globalization (Art, 2014). With the elimination of these barriers, the exotic Indian jewelry will reach the intended market hence a better company performance regarding revenue and market share. In conclusion, the expansion of the company’s operations into other countries will be successful if the discussed guidelines are adopted.