Emerging Market Companies

Question 1

What are challenges of companies in emerging markets?

Answer 1

• poor country of origin
• lack of marketing knowledge
• lack of understanding western markets

Question 2

What is the reason for the emergence of EMNCs?

Answer 2

• increased significantly in the global marketplace
• successfully navigated challenging home markets

Question 3

What are the Stages of Evolution?

Answer 3

Stage: 1 Innovation Capabilities
Stage 2: Internal Maturation
Stage 3: Global Networking

Question 4

What describes Stage 1?

Answer 4

Stage 1: Innovation Capabilities

• develop innovation in home market
• leverage innovation to enter niche in host market

Ex: Xiaomi

Question 5

What decribes Stage 2?

Answer 5

Stage 2: Internal Maturation

-organizational learning + knowledge sharing
- enhance brand recognition + marketing capabilities + build cash rich positions

ex: Lenovo

Question 6

What describes Stage 3?

Answer 6

Stage 3: Global networking

• form strategic partnerships in host country + acquire
• gain access to technology + new markets to establish a stronger global presence

ex: Embraer

Question 7

What are liabilities in the home market of Emerging Countries?

Answer 7

• lack of credibility due to origin in emerging country
• hard to establish trust + brand recognition
• limited access to technology
• navigating comples foreign regulations + cultural differences

Question 8

What are strategies to overcome these challenges?

Answer 8

• deep understanding of new market
• cost efficient production
• acquisitions + partnerships
• invest in marketing + brand building
• knowledge sharing
• target niche markets with less competition