Survival Strategies for Local Companies in Emerging Markets

One of the most important “dos” is for countries to pay renewed attention to the market selection which they are competing in. More precisely, these countries should focus on maximizing their opportunities where they can find cultural, administrative/political, geographic, and economic affinities. Companies use three different techniques to compete globally. These techniques are adaptation, aggregation, and arbitrage. According to Ghemaway, companies must be able to “vary products, policies, market positioning, and so on to suit local markets.” However, this method of adaptation is intended for companies which have large success and not those who have marginally. Another, important “do” is for “companies to externalize some of the costs of adaptation via franchising, joint ventures, or other types of partnerships.” Some “don’ts” are not put adaptation above all because it would get rid of competitive advantages and not to over-rely on localization. Relying too much on localization would hinder the value of across borders for a

There are many opportunities available for companies willing to venture into new, international markets. Reaching more customers and therefore, turning a larger profit are two fairly obvious reasons for companies to consider global expansion. However, the potential benefits do no end there. Expanding to international markets can hold less obvious, yet extremely beneficial appeals such as access to new and different talent pools, grander output requires great advances in efficiency, and international expansion can, in some cases, aid in “future proofing” the company.

Modern companies are enjoying the lowered barriers of trade and decreased trade costs. This gives rise to new competition in the global market which was previously isolated due to the above mentioned factors. Local companies are finding ways to enhance their performance by innovating and adapting new processes and product improvements. This dynamic, domestic sector leads to higher productivity, which can create sustainable competitive advantages for companies, as well as drive job creation and per-capita income growth for an economy (Baily, 2005). In order for our organization to grow outside of South Africa and develop as an international brand, it will have to compete on a global scale by targeting unfulfilled foreign

For instance, batteries are marketed much the same way, and without alterations to the product across the world. Now since we are selling coffee it might be tempting to think that since coffee is enjoyed around the globe that this would be a suitable method to use. This I believe is a mistake that Friend-Z coffee house should avoid. Not all cultures enjoy coffee the same way. For this reason, it is important to use a multi-domestic strategy. When working in a foreign country, it is best to cater to local tastes. For this reason, Friend-Z needs to change their coffee shop to use local flavors and beans so as to appeal to the local culture and integrate itself into the community. With this strategy, the foreign Friend-Z coffee shop, while still adhering to the original ideas of local flavors, fast service, and warm atmosphere, will accomplish this goal differently than the original coffeehouses. Given the advantages and disadvantages of going global, the advantages outweigh the disadvantages. The point must also be made that regardless if a company decides to compete globally or not, this does not mean that that company is not facing global competition all the same. As Richard P Biggs, founder and CEO of Atlantric LLC, says in his article 10 Reasons to go International “ If you are pondering whether to go global, recognize the fact that you are ‘global’, in that you very likely have global competitors. You are in a competitive global marketplace now.”

When expanding into a global marketplace, companies must select a means of market entry. The decision to export, franchise, build a strategic alliance, establish a joint venture, and make a direct investment is based upon two things: an organization's interest in maintaining marketing control and how much of a financial investment it is willing to make. This holds true for 5 Bucks and Joe to Go, both of which are coffee retailers that want to enter emerging urban markets in India. 5 Bucks prefers to maintain greater control afforded by a joint venture and is willing to take on greater financial risk. Joe to Go, on the other hand, is not as willing to take on high levels of financial risk and is willing to rely on its franchisees to effectively market and brand Joe to Go in India. Both options require their local partners to adjust offerings to meet the needs of the local population while maintaining similarities in product, look, and experience across global locations.

This is an international marketing strategy that largely focuses on the commercial efforts and advertising on the benefits of concentrating on local markets rather than using global or universal approach. This, therefore, means that the company will employ work towards understanding culture of different local markets in various countries and try to enter into the studied market using the demographics in that area. The greatest effort required in this strategy is using advertising as well presentation to try and appease local sensibilities in various countries rather than applying a mass market strategy. So that this strategy can be successful it is crucial to carry out extensive research in different countries that the company hopes to invest (Leontiades, 2010). By learning how the company can be able to create a good connection with the consumers in various countries using multi-domestic strategy can assist to build a lot of tactics which can be integrated into markets that have many similarities. Learning how to closely associate with customers will also assist customize marketing and advertising efforts to match with the present local culture. Although multi-domestic strategy may be somehow expensive to employ its end result are more profitable to the company. When the company’s products are able to

In 1962, the birth of regional discount stores occurred, including Wal-Mart, which grew to be one of the world’s most successful retailers

Almost regardless of what you do, you have bigger competitors. When certain company is successful and rising

Allows analysis of the way in which newcomers can change the rules of competitive engagement in a global industry. How incumbents can respond, especially when constrained by regulation, tradition, embedded values, and a different set of capabilities than those demanded by the emerging market by changing consumer tastes and market structures.

For many multinationals, it 's a foregone conclusion that local distributors bave merely been vehicles for market entry, temporary part-

So, keeping those in mind the company can adopt a localization strategy in international markets; in every market that they have entered they may produce products just like they did to Asian people. Furthermore, lower prices can show products less qualified in international markets, especially in Europe and America, for those markets the company can came up with an alternative product line that is more niche.

in the international markets. The main objective is to keep the current competitor advantages of

In 1991 the Indian government introduced a series of drastic reforms, liberalizing its government owned and controlled economy. Product expansion and new market entry became easier for companies in virtually every sector of the economy. This presented Tata with many opportunities to leverage its strong brand equity and financial resources to enter new markets and industries. The strong brand image gave it a tremendous advantage over competitors in a variety of industries. However, the government reforms also lowered barriers to entry and increased competition in all of Tata’s industries. Foreign

Companies can decide to go global or to enter international markets for various reasons, and these different objectives at the time of entry that enable the business to produce different strategies and the performance goals, and even forms of market participation.

Dr. Farok J. Contractor is a professor in the Management and Global Business department of Rutgers Business School, New Jersey. He has written hundreds of articles on the topic of international alliance and foreign direct investment. “Punching above their weight: the sources of competitive advantage for emerging-market multinationals” is one such article of global interest which has been declared of great value both for the public as well as for policy makers. The prime focus of this article is upon the phenomenon of emerging market multinationals which have swept the world by storm and introduced a whole new way of conducting global leadership and business. These emerging market multinationals are specifically discussed