Factors Influencing the Multinationals and Local Companies for the Market Position.

3888 Words Feb 13th, 2010 16 Pages
Bodawala Priyanka Manish

Business and its Environment

Dr. Racz Matron and Dr. Márta Szabados

August 25, 2009.

Factors influencing the multinationals and local companies for the market position.


Couple of years before the policy maker decided to lower down the tariff barriers and to give permission for foreign investment. Multinational companies have started rushing into countries where they wanted to achieve the market position (Arindam K. Bhattacharya and David C. Michael) The entry of multinationals is good for the country as they bring
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As a result the revenue was doubled than revenue in china between 1998 and 2005 and now exports the China’s product to 70 countries (Orit Gadiesh, Philip Levng and Till Vestring 2008 p.82).

Foreign companies dealing with good enough decision in china will need to consider the factors like are companies still achieving high returns or returns eroding? Another is company’s market position – Are you a leader or niche player? (Orit Gadiesh, Philip Levng and Till Vestring p. 83). Than perform through out the market and competitor analysis. For company to expand into middle market this knowledge will have important decision about it, as to land as an existing player in that space or should come up with a good-enough partner. Managers of multinationals to understand between the china’s premium and good enough market segments should carefully conduct the market analysis.

Arindam K. Bhattacharya and David C. Michael (2008) says that tariff barriers have been lowered and foreign investment have been permitted, multinationals have rushed into countries and it appeared like they would quickly defeat the local rival and capture the market for every product or services. Poor nations like Brazil, Mexico, India, and Russia were assuring that local enterprise would be washed out by
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