Internet and Technology

Introduction

•            It is almost impossible to find a business leader in the global marketplace who does not operate, or at the very least, is not exploring opportunities with or within emerging market countries. Even those entrepreneurs who prefer domestic markets experience competition from companies based in these regions. During the last 20 years, the global business world has gone through drastic but mostly positive changes. In the 1980s, international business was essentially an exclusive club of the 20 richest countries. This changed as dictatorships and command economies collapsed throughout the world. Countries that once prohibited foreign investment from operating on their soil and were isolated from international cooperation are now part of the global marketplace.

The Idea in a Nutshell

•            All strategists, analysts and executives try to understand and evaluate emerging market countries. This process is complicated by the pervasiveness of misleading statistics and studies.

•            An emerging market country can be defined as a society transitioning from a dictatorship to a free market-oriented economy, with increasing economic freedom, gradual integration within the global marketplace, an expanding middle class, improving standards of living and social stability and tolerance, as well as an increase in cooperation with multilateral institutions.

The Top Ten Things You Need to Know About Competing in Emerging Markets

1.Push to perfect the technology, improving quality and attractive performance.

2.Consider merging with or acquiring another firm to gain expertise and resources strengths.

3.Technology Try to capture any first-mover advantages by adopting it quickly; however, it can be costly and it can quickly move in surprising new direction.

4. Acquire or form alliances with companies that have related or complementary technological expertise.

5. Pursue new customer groups, new applications, and entry into new geographical areas.

6. Make it easy and cheap for first-time buyers to try the industry’s first-generation product.

7. Products becomes familiar to a wide portion of the market, shift the advertising emphasis from creating product awareness to create brand loyalty.

8. Use price cuts to attract the next layer of price-sensitive buyers into the market.

9.Form strategic alliances with key suppliers whenever effective supply chain management provides important access to specialized skills.

10. Strategic efforts to win the early race for growth and market-share leadership.

The Video Lounge

The term emerging markets is used by investment analysts to categorize countries that are in a transitional phase between developing countries that are just beginning to industrialize and countries that are fully developed. The main significance of the use of the term is that investments in emerging markets are assumed to carry greater risk and offer less safety in investment. The term is often used interchangeably with developing markets, though this is somewhat inaccurate. In this Video he tells us about the changed in this century. Emerging markets are characterized by strong economic growth, resulting in an often-marked rise in GDP and disposable income. As a result, people in emerging countries are often able to buy goods and services that they previously would not have been able to afford. This provides international companies with the opportunity to tap large, new customer bases, potentially driving significant growth for a number of companies and industries.

http://www.youtube.com/watch?v=3eUbxJAud5w

My Take

•Multilateral institutions cannot ignore the need for clear definitions of emerging markets, as well as of developing and underdeveloped countries. It is important not only for the global business community but also for the poorest people and countries, which need special attention from political and business leaders of the world.

References

Michael Pettis, The Volatility Machine: Emerging Economies and the Threat of Financial Collapse (2001)

http://en.wikipedia.org/wiki/Emerging_markets

http://www.forbes.com/2010/04/22/women-talent-workplace-china-india-brazil-forbes-woman-emerging-markets.html

http://www.forbes.com/emergingmarkets/.

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Contact Info: To contact the author of “Top Ten Management on Competing in emerging markets,” please email Gerardo A Trejo at gerardo.trejo@selu.edu.

Biography

David C. Wyld (dwyld.kwu@gmail.com) is the Robert Maurin Professor of Management at Southeastern Louisiana University in Hammond, Louisiana. He is a management consultant, researcher/writer, and executive educator. His blog, Wyld About Business, can be viewed at http://wyld-business.blogspot.com/. He also serves as the Director of the Reverse Auction Research Center (http://reverseauctionresearch.blogspot.com/), a hub of research and news in the expanding world of competitive bidding. Dr. Wyld also maintains compilations of works he has helped his students to turn into editorially-reviewed publications at the following sites:

Management Concepts (http://toptenmanagement.blogspot.com/)

Book Reviews (http://wyld-about-books.blogspot.com/) and

Travel and International Foods (http://wyld-about-food.blogspot.com/).                

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Article by Lemuel Kelly

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