This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.
There are emerging markets all around the world especially in developing countries that still have a huge of customers need. Therefore many CEOs in the developed countries try to expand their products to the efficiency markets. Top managements in the large corporations such as in North America, Europe or Japan have to improve their strategies to compete with the globalization. Global strategies will increase benefit and market share. Many companies face the problem about facing with competitors in the domestic markets and most of the competitors have the same products and same strategies. From the problem, many experts create the theory to improve management system in cross culture including reducing the problems in difference environment. However, the large corporations in developed countries succeed to increase business in emerging markets as they have power. Developing countries have many factors to make a consideration in order to invest the projects in each country. For example, India and China have the difference skill in the management levels; Indian has English speaking be fluent by business school and technical school. The company can employ local people to manage the organization in their countries that have the benefit in the culture management. In the other hands, most of people in China cannot speak English and has many dialects such as Cantonese, Mandarin and etc. So companies have to train their people in China or send people from mother companies to manage their organization. Unfortunately, they may do nottotally understand both culture and customer behavior that is a main factor to make many companies getinto the failure. Therefore the large corporations have to define their strategies that should be suitable for each culture and traditional. As the result the companies which can apply the strategic with the environment in each country succeed in outside markets. Therefore the emerging markets are interesting market for large companies in developed country to distribute their products.
Emerging market is the market that still has the needs of customer and engages in business operation in international markets (Fan, 2008). There was a sharp increasein number of business in the emerging markets around the world especially developing countries. Information from the Boston Consulting Group (BCG, 2006) mentions that there are 100 companies in the emerging market with total asset of US$ 520 billion that more than 20 worldâ€™s top car companies. Moreover, the emerging markets that still have the efficiency to expand are in the developing countries such as China India and more. Walters (1986) states thatemerging market strategy can be defined by inspecting the basement on which the operation of the company.The strategy which adopt for multinational corporate can create the competitive advantage in the emerging market. Many viewpoints have been projected to inspect the subject, consequently have manytreatments for companies frontinginternational competitive.In global market, there are many competitors that have the effective in the operation management such as cost strategy, quality of product strategy and more. White and Griffith (1997) mentions that global strategy is importance to drive the business in the global market. The operation strategy in each company has difference points that are the strength point such as cost strategy, customer strategy and innovation strategy. Moreover, global brand has the significant to present the product for the customers and grow the value of brand in the market. A global brand is also known as international, worldwide brand.Moreover, the framework categorizes three key multifaceted difference concentrates on the customer, the competition, and the environment (Viswanathan and Dickson, 2006). The competitive theory is prepared before the company invests the business in the other countries. Consequently, the culture and the need of customer are importance factors to study, the company should set the goals and the target groups by adapting the strategies for each country.
The scope of the Strategies that fit Emerging Markets
Strategies that fit emerging markets journal presents information about the fast-growing economic in the emerging market. Many large companies especially North America, Europe and Japan gain the profit from the developing countries which are the emerging market such as China India Brazil Russia and more by using the global strategy and multinational corporation. Nevertheless, there are the problems in institutional voids that impede the operation of international strategies. Therefore most of top managements prefer to invest in developed country to reduce the institutional void problem. Since 1990, companies found the low cost strategy that sets the manufacturing facilities and service area in developing countries to decrease cost of labor and resource. Moreover country portfolio is used to analyzing political assessment that concern on benefit from investing in developing country. Before companies do business in developing country. There are five contexts to make a consideration contain of political and social systems, openness, product market, labor market and capital market. Political and social systems make an impact to the foreign investor such as in China, the workers are controlled by the government. Cultural, regional and linguistic group are the key to reduce the problem in social system. Openness is the factor that concern about the approach to enter in the international market. Product markets rapidly grow in the developing country during the past period, however companies still fight to becomeconsistentdata about customerparticularly those with low revenue. Labor market has problems to hiring employees and finding other trainedstaffs because the feature of capacity is difficult to establish. Capital markets in developing countries are outstanding for their absence of intercessorssimilar credit rating agencies, investment analysts, trading bankers or undertaking capital business.And then companies use five contexts to apply the framework in emerging market. This paper analyzes four countries such as Brazil, Russia, India and China that have the difference systems in five contexts. Companies have three diverse options to adjust the model of management to the emerging market. Firstly, adapting the strategies is changing the business model for each country. Then, changing the contexts mean most of large corporations have the power enough to modify the contexts in which their operation. Lastly, staying away to define companies which cannot create the same strategies in all of developing countries; they are unrealistic or uneconomical for some business to adjust business model in the international market. Moreover, companies can produce collaborations by considering different markets as part of an organization.
However, the viewpoints have augmented considerate of the difficulty of international competition. Alternatively, the multiplicity of viewpoints builds a perfect agreement of obscurity and misperception concerning how to play in the global market, concerning the description of an international strategy, concerning why a company selects an international strategy, and concerning the suggestions of that optional. Lacking a combined framework to participate varied viewpoints, obscurity and misperception are probable to continue, leadership to denying concepts and disheartening applied submission of information.
Enderwick (2008) mentions with the same direction with strategic that emerging market journal that the market that many investors interest is the growing marker or emerging market. China and India market are immediately increased in the economy of their countries. There are three main factors to drive two large countries in high competitive in the present. Firstly, their population and the high economic growth create the chance to investment and gain the profit in the emerging market. Secondly, there are many industries such as garment, automobile, electronic and so on. For above reason, the large companies have the opportunity to use low cost strategy by China and India can provide the low cost labor and source of material. Especially China is called worldâ€™s workshop and India is called global back office. Thirdly, character of the large emerging market is economic and social drive, high ranks of competitive, prevalent market failure and institutechanges.
Zhou, Choa and Huang (2008) recommend the strategies that push the business to the objective of the organization. Modeling market orientation and organizational antecedents in a social marketing context are the key factors to improve the organization move to the direction that company define. The context of international market is importance to analyze for setting the organization model or the strategies in each country. In each country, companies have to study the difference of context and define the strategies follow the context.
In the other hand, KwakuAppiah-Adu (1998) confirms that the ideas and marketing technique in the developing countries are suitable to expand market share of companies. However, marketing knowledge and marketing expertise still are not enough to drive the business in the emerging market. This point is the strong barriers to improve the economic in developing countries. Indeed, more than a few researchers and experts of improvement have supposed that the one core of issues in economic improvement of developing countries are that tiny consideration have, to this point, been located on the inadequacies and occasions of marketing. Developed countries try to research the new need of customer in developing countries to create new product to response.
Procter and Gamble
Procter and Gamble is of the powerfulcompany which produces three main type of products consist of Beauty and grooming, Health and well-being and Household care. This company has the manufacturing in many countries in order to reduce cost such as labor cost, distribution cost and more. The company has many factories in the developing countries such as China, India, Thailand and more. Most of factories are in the developing countries that have the source of material and cost of labor is cheaper more than developed countries. Moreover, the strategies in each country are difference because of the working environment and the culture in each country but base on the same standard of products. However the company gives the empowerments to the organization to manage and make a decision in each country. Branches in each country are allowed to approvethe ways that createeffective in difference cultures and traditional by based on company guideline. Nonetheless, earlier a way is completelyaccepted, the company has to test in the demonstrate market in the new culture. There are three characters of Procter and Gamble international strategies to explain the concerned intercultural management. Corporation strategies can give the goals of the company and increase market share in the other countries. Moreover the company can create the global brand position be the value asset of the company. Every Procter and Gamble branch,pressure is positioned on making the strategies that are reasonably believed out and based on evidences.The central international teams are too impassive from home markets and resident client tastes to be able to reveal local cultural requirements. The economic benefit from the standard of global brand is not enough to engage in the local adaptations. In the other words, the local adaptations make reflections to a global corporation of intercultural management abilities.Furthermore, Procter and Gambleneed to license legacy of secrecy in each country. Openness in each country is different; therefore the company employs the employees in each country to work in the local environment by using the strategy that restructuring. The company addresses the issues facing manufacturers, retailers and wholesalers in every branch of the company around the world. For example, these issues are the internationalization and association of trading, customer loyalty and retaining, classification management, the possibleproperties of affecteddevelopments in information technology. An international strategy is completed by asuitableadministrativeconstruction as well asbeliefsthat arean actual in intercultural management.
The modern strategies of internationalcompaniesare to drive the emerging market in developing countries. This requires being complex to changed local markets, each nation by a diverse set of cultural features. In each country has to be agreedmethodically, and the partialities of the consumer basicoccupied into description. All together, the matchingranges of quality have to be continued in the international market. The requirements make on multinational corporations are consequentlyunexpected.
Many large companies around the world try to expand their market share in the emerging markets. Most of the emerging markets are in the developing countries especially China and India. Developing country is fast growing on the economic, but institutional voids are the problems to obstruct global strategies that are able to make the profit to companies. Therefore companies should analyze five contexts contain of political and social systems, openness, product market, labor market and capital market to make strategies and decision in the emerging markets. And then companies should apply information to define framework in each country. Some countries need to change the context to analyze because of culture and customer behaviors. Procter and gamble is the successful of global company which has the factories in every continent to reduce cost and response the need of the customer around the world. Moreover the company can apply every branch with the local culture by giving empowerment to make decisions. This strategy can reduce the problems of institutional voids and compete with local companies. However the adaptions of local branches make reflections to the global organization that should find the solution to improve the organization. Consequently, the suitable strategiesare importance to move the business in the emerging markets.