International business the new strategies for doing

Info icon This preview shows pages 21–25. Sign up to view the full content.

View Full Document Right Arrow Icon
International Business: The New Realities 10-21
Image of page 21

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Strategies for Doing Business in Emerging Markets Customize Offerings to Unique Emerging Market Needs. Successful firms develop a deep understanding of the distinctive characteristics of buyers, local suppliers, and distribution channels in emerging markets, and customize offerings and business models accordingly. Partner with a family conglomerate – FCs can provide various advantages, including financing, bank services, local suppliers, and distribution channels. FCs can help reduce risks, time, and capital requirements; develop relationships with governments and other key players; and overcome infrastructure hurdles. International Business: The New Realities 10-22
Image of page 22
Target governments , which buy enormous quantities of products, such as computers, furniture, office supplies, and motor vehicles, as well as services. State enterprises operate in areas such as railways, airlines, banking, oil, chemicals and steel. Skillfully Challenge Emerging Market Competitors. New global challengers and other emerging market firms possess various advantages that require skillful strategies and due diligence to overcome. International Business: The New Realities 10-23 Strategies for Emerging Markets (cont’d)
Image of page 23

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Strategies for Emerging Markets (cont’d) Low-cost labor, skilled workforce, government support, and family conglomerates give emerging market firms various advantages. Advanced economy firms must: Conduct research to understand target markets and the indigenous challengers; Acquire new capabilities that build competitive advantage (e.g., develop new products, new ways of doing business, local alliances) Leverage the same advantages in emerging markets enjoyed by local firms (e.g., low-cost labor, skilled workforce, cheap capital, key partnerships). International Business: The New Realities 10-24
Image of page 24
Catering to Emerging Market Economic Development Needs Increasingly, firms are involved in fostering economic development in emerging markets. Assisting economic development may (or may not) be part of efforts aimed at corporate social responsibility. More commonly, doing business in emerging markets makes good business sense, and generates big profits. Helpful ventures include modernization projects (e.g., power plants); infrastructure projects (highways); injections of capital (via microfinance); marketing consumer products (which leads to distribution channels, reduces prices, and creates jobs). International Business: The New Realities 10-25
Image of page 25
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern