Student’s Name Instructor’s Name Course Date Article Review: Strategies That Fit Emerging Markets According to Khanna and Krishna, multinational corporations acknowledge that globalization is one of the most critical challenges in business because it has become increasingly more stringent to pinpoint appropriate internationalization (63). It is harder to invest in developing countries because of the absence of specialized intermediaries contract-enforcing laws in emerging markets (Khanna and Krishna 63). Additionally, institutional voids and the absence of soft infrastructure in emerging markets hampers the execution of globalization strategies. Therefore, discussing the five context framework and three strategic choices that multi-national
2. Discuss different levels of market involvement and various modes of entry. Most of the companies start by producing and marketing in their own country. It is because the environment in the home country is better known thus the difficulties in the home country can be over come easily. But over time as the home market become saturated or in other words the market potential is fully occupied due to other players in a particular industry, a company seeks market elsewhere.
Often, profitable industries with attractive long term strategic mode and low barriers to enter are attractive to new companies. Such barriers will be determined by the economics of the industry of the market, are usually high when there is patents and proprietary knowledge access to specialized technology or infrastructure is required and high initial investment is needed (Martin, 2014). Thus it is important to address the questions of likelihood of the increased competition with the new entrants. Here the importance is what are the barriers, how much would it cost the entrant to enter the market and how quickly would this investment pay back (Strategywrap,
Managing global market challenges Pushed by challenges, the transformation of organization, which involves three components - information systems, organization structure, and resources deployment, is strongly demanded. In each stages of international market development, the firms will have a different critical component to focus on. Information systems technology The information technology has changed the competitive landscape and interaction between individuals, firms, and between firms and the emerging challenges. The information is crucial for directing strategy, reducing uncertainty and risk, calculating the performance and operating linkages of the company. The information flow between functional units and between operations in different
The adoption of new technologies and trends is being facilitated in the industry for the competition and the customer’s overall experience. Many suppliers that are having similar strategies face a strong competition. The barriers for exiting the markets are high. Products and services of are undifferentiated leading the customer to focus on the prices offered. Low market growth, so it can be increased only by taking another firm’s market share.
This is because by using all of the four strategies, perhaps the company can earn many profit and can sustain in market for a longer time. As have been mentioned before, it is advisable for the some company to concentre only on one competitive strategy to ensure that they can stay in the industry, but the fact is, it is flexible and subjective as the company can change it according to the situation of the market and it ‘s own rival. Firstly, in order to assist my Malaysian business to become more competitive and can earn more profit in the market it is recommended for them to proceed with the differentiation leadership and focus strategies. As both of these strategy could help the company to produce or offer a product or service that meet the demand of the customer or user. In addition, from both of these strategy the company can differentiate their own products or services to become more unique or as a completion to the feature that is lack on its own competitor products or services.
After going through internet, I had this to quote. www.loc.gov/rr/business/BERA/issue1/trends.htm... As the economy grows slowly at home, your business may have to look at selling internationally to remain profitable. Before examining foreign markets, you have to be aware of the major trends in international business so you can take advantage of those that might favor your company. International markets are evolving rapidly, and you can take advantage of the changing environment to create a niche for your company. Growing Emerging Markets Developing countries will see the highest economic growth as they come closer to the standards of living of the developed world.
These emerging markets have various challenges as their major proportion of population still have low level of awareness about technological advanced products. They have comfort of using with low level technological sophisticated products as in evident in case of Gillette Guard. Companies can meet the challenge of meeting customers demand in emerging market by adopting following approaches (Mundim et al., 2012): Research for understanding market demand: Companies must conduct through market research about the customer’s needs, potential market. Company can go into contract with local market to have more in depth knowledge or can conduct independent research (Guarino,
One of the most meaningful practices that a business can do to evaluate its current position in the market is SWOT analysis. Through this analysis, a firm studies deeply the internal (strengths and weaknesses) and the external (opportunities and threats) factors a business that affect it’s mission and vision. This study can help a firm determine its capacity, get a broader understanding of the market, determine strategies, determine training needs and finally maintain the strengths that it posses. Below we will explain the SWOT analysis of our company’s move from Lebanon to China. To begin with, strengths are extremely important to any firm.
• When a firm decides to do international business it faces a lot of decisions. The most basic is making the decision that entering international markets are in the best interest of the company. • There are various criteria used when choosing an international market to enter, they are: proximity, stage of development, geographic region, language , government policies and laws , competitive situation and many other factors. • There are various international entry and expansion strategies they are: exporting, importing, licensing, franchising, inter-firm cooperation and foreign direct investment (FDI). EXPORTING AND IMPORTING • (Czinkota, Ronkainen, Moffett, Marinova, & Marinov, 2005) explains that firms can choose to be involved in exporting and importing in either a direct way or indirect way.