A major part of an industry’s revenue growth is the amount of consumers a company can reach with their product or service. If one is limited by lack of infrastructure, capital, or client base, then it is vey difficult to raise profits. The best way for a company to grow is to access the enormous international market that has been increasingly expanding with globalization. Recently, Tim Hortons Inc. signed a license agreement with Dubai-based Apparel Group to open up to 120 multi-format restaurants in Persian Gulf markets. The restaurants will be quick order, specializing in coffee and donuts in an effort to reach the growing commuter population. The area targeted includes Kuwait, the UAE, Oman, Quatar, and Bahrain since the company has previous success when investing in the area. Since the announcement THI’s shares were up 0.2% to $41.74.
Oscar Jacob
It's true that in a globalized world like ours it's almost impossible to raise profits not being in an international market. Like everything, globalization had both its pros and cons
ReplyDeleteBy Katerina Argyrou