The paper analyzes the various entry strategies in the emerging markets with special reference to the BRIC countries and their contribution to the world economy as more numbers of western business houses are cropping trying to intrude and make allies. …
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However before entering into the markets, the organizations should study the vulnerability of the market conditions and various socio economic factors which are mentioned below. Based on the analysis of the factors the organizations should decide whether it has the necessary potential for setting up a business in the country and also should devise the entry strategy accordingly. The factors which are of prime importance are discussed below Political Factors: The consequence of the political issues is of a high significance to the business. While investigating into the political factors, matters relating to the policymaking of diverse regions are all taken into consideration. These fields include the administrative, provincial, nationwide and worldwide aspects. Another vital part which is included under the political factors is the consequence which businesses have to face due to alteration in the government both in the local and countrywide level. Multinational businesses also need to properly understand the official policy which a government offers towards other countries (Wiiliams & Green, 1997, p.162). Economic Factors: The economic factors recount the components which influence the economic position of the business. The economic issues thoroughly deal with the economic and the fiscal strategy of the government. It is quite clear that the economic recessions relating inflation also disturb the officialdoms. The power of the national economy is a major factor which organizations do ponder upon. Alteration in taxation rate and bilateral trade agreements amongst the countries are also thoroughly administered (Walters, 2006, p 208)...
This report stresses that the analysis of the different market entry strategy shows that all the strategies discussed above offers a range of advantages and also does have some limitation. However in context of the analysis of the market entry strategy in the BRIC nations it has been found that the countries like China ,India , and Brazil are the emerging nations and the foreign organizations looks to invest over there because of the wide range of benefits. Brazil is one of the nations in the BRIC community and its economic stability has made it one of the desired countries for the investors. The study reveals that the strategy of joint venture has been applied by most of the foreign multinational in the country. The reason for the choice is quite obvious as joint venture allows having a close look at the market and reduces the exposure to a wide variety of risk.
This paper makes a conclusion that the option of joint venture also provides additional benefit to organizations in countries like India. The help from a local organization provides guide to the foreign companies for penetrating the market and build up a strong presence in the market. The corruptions in the market also can be reduced through the strategic alliance. As a result of the strategic alliance, the local organizations are also benefited considerably and in overall it helps to increase the stability of the economy.
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(Entry Strategy In Emerging Markets Essay Example | Topics and Well Written Essays - 3000 Words)
“Entry Strategy In Emerging Markets Essay Example | Topics and Well Written Essays - 3000 Words”, n.d. https://studentshare.org/business/1393801-entry-strategy-in-emerging-markets.
INTRODUCTION: The essay focuses on the multinationals of emerging economies and their increasing importance in today’s economy due to their extensive globalization and the scale of demand they cater in emerging and developed markets. It further discusses the beneficial factors that only an emerging market, like the one from which the multinational comes from, can provide to these companies when compared to the developed markets.
Developed and emerging markets firm
The rate at which urbanization is increasing has made a new consumer generation to come about having a strong passion for the development of infrastructure and consumer goods in support of their new lifestyles. This has made investors continue enjoying a season of returns that are exceptional over main classes of assets.
Western based corporations can no longer stick to the old formula that maintained innovation and growth for decades encompassing hybrid top-down strategies, rigid, highly structured innovation processes, and expensive R&D projects. The future of innovation demands that multinationals resort to places such as India, Africa, and China for a fresh bottom-up approach to flexible and frugal innovation.
Corporate profits seem to grow rapidly when there is a higher economic growth. One of the reasons why developed markets like the U.S have been ranked high is because of the development of markets outside the country. Some nations are borrowing a leaf from the U.S and are performing well as emerging markets.
Additionally, management skills from foreign investors are implemented to the host country. Foreign direct investments (FDI) have been viewed as the best financing tool in the emerging markets. As stated above, emerging markets create new technologies which can increase productivity and create new jobs in the host country.
Financial instability and crisis have rocked most economies, with the recent one being experienced in the 2008-2009 period. One of the reasons cited behind this crisis has been a laxity on market discipline resulting in the lack of adequate warning signs that could have triggered the implementation of corrective measures.
ment of the company can come across cultures which are significantly different as compared to the home culture and they can find locations where their management methods might not be as readily accepted (Cavusgil et. al., 2002). However, by understanding other cultures and using
The author states that the choice of the entry mode depends upon the external and the internal business environment. The external environment comprises of the macro-environment and includes the political and economic factors of the host country, the government rules and legislation, the barriers in the sector and the host country market environment.
11 Pages(2750 words)Essay
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