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This paper therefore investigates the various factors that justifies reasons for choosing emerging markets for investment and also looks critically into factors that must be taken before making such a move. The motivation for most global enterprises to expand to emerging markets relative to other growth oriented options is highly justified in the response that various emerging markets are giving to such new expansions that are coming from the emerging markets. Commonly, emerging markets were tagged as places of inactive global business because of the absence of needed infrastructure to be engaged in competitive globalised business orientation.
But this phenomenon which dates back to the pre-2000s could be said to be a thing of the past especially when the argument is made in terms of technological advancement (Kanter, 2008). One factor that remains an open secret about globalised enterprise expansion is that most of these corporations that go into these forms of expansions depend greatly on the power of the internet. This is because a lot of them engage in proactive virtual business engagements that require the exchange of communication, ideas, logistics and resources via the use of information systems and information technology.
As emerging markets, especially those in African and the Middle East open themselves up for such forms of virtual business operations to take place and still hold on to their core economic principles as providing investor friendly environments for business, multinational corporations have no other option than to include these areas in their global expansion agenda. Having justified the importance of including an emerging market as a strategic option for global enterprise expansion, it is important to note that the actual act of moving into an emerging market must take place as a process rather than an event.
What this means is that the act of moving must be characterized by series of preparations and planning that are focused and aimed at achieving a sustainable expansion program (Bremmer, 2005). Key among the processes that precede the movement must be a need for critical decision making to take place. As part of the decision making process, four key steps will be outlined for following. The first of this shall be a market feasibility study, which shall help in making decisions on the forecasted viability of the new movement.
The second is a business strategic option that will be suitable for the proposed destination, whether it would be a focused option, differentiation strategy or cost leadership (Kim, 2008). Thirdly, decision shall be made on implementation approach to know the best form of implementation approach to use, noting that the presence of competitors allows for the need to have an entrant approach that readily catches the attention of consumers. Finally, an evaluation program that helps in taking decision on the workability of the plan shall be instituted.
Whiles writing on the decision making processes, the issue of strategic option came up. Specifically on this, there are very important considerations that any company would want to make as a means of meeting the customised needs of consumers. From this perspective, two major considerations will be expanded, which are the bargaining power of consumers and the quest for differentiate products and services from consumers. For the former, the
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