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Opportunities of Emerging Market Multinational Enterprises - Assignment Example

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The paper will analyze the opportunities and challenges that Emerging Market Multinational Enterprises face when internationalizing into developed markets. EMMEs are companies that are based in emerging markets with operations in more than one country…
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Opportunities of Emerging Market Multinational Enterprises
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Download file to see previous pages There are numerous opportunities in developed markets that can be tapped by EMMEs. The first opportunity that EMMEs have in developed countries is the high number of middle income consumers. Developed markets normally have a large proportion of people in the middle income category as compared to emerging. Middle income consumers comprise of the largest consumer base in developed markets (Tse, Russo, & Haddock, 2011). The middle income earners have a high purchasing power which presents a valuable opportunity for EMMEs in the developed market. Middle income consumers are willing and able to pay high prices for products and services from the EMMEs. Middle income consumers are able to drive up the profitability of enterprise. EMMEs can tap into this segment by embracing innovation, branding and implementing effective marketing policies targeted at this category. The EMMEs should be flexible enough to develop product lines that can attract this segment of consumers. The company must carry out market research to identify the product attributes that are desirable in that particular consumer segment and comply accordingly in order to attract more customers. Developed markets present the opportunity of highly advanced technology and equipment. Unlike the home bases in emerging markets, developed markets have more advanced technology and equipment. The lack of technological and machinery advancement in emerging markets puts a strain on the effectiveness and productivity of the EMMEs. ...Download file to see next pagesRead More
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