Benefits
HSBC strategic operations have reflected a global world view that has offered the bank tremendous opportunities for growth as seen by the growth in developing markets (HSBC.com, 2016). The profitability of developing countries has surpassed profits for developed markets such as USA and Europe. An illustration of the same can be seen by the asset and profit ratio in developed markets and developing markets which show positive numbers in terms of profit (Morris and Liu, 2015). Another benefit to operating in the emerging markets is the opportunity to tap into the wealth management industry. The banks origin in Hong Kong coupled with the presence of an already established wealth market in the region makes an opportunity for the bank to acquire more clients. HSBC’s has also taken advantage of its diverse cultural image and reduced cost of wages to outperform its operations in developed markets (HSBC.ca, 2011). The cost of running its operations in developing countries such as Brazil, Singapore, India and Thailand is much lower than in Europe. The reason for cheaper operations cost is as a result of reduced remuneration cost in areas of developing countries in comparison to the already developed countries.
The risks associated with the bank include the inconsistent application of policies and regulations in the new markets (Henning, 2016). The problem of acquiring licenses in the developing markets poses a challenge to the bank (Wildau, 2016). The bank has also faced the problem of competing with already known banks such as national banks.

Target Market
Target market refers to the ability of a business to market its efforts and draw the attention of intended customers (Lamb, Hair and McDaniel, 2011). It also refers to the ability to target a particular group of customers that will most likely buy goods and services from the company. HSBC’s main target market is