There are various ways to enter an emerging market. Using various entrance examples, understand which strategy could be best for your business.
- Strategic alliances between companies…are a lot like marriages.…They offer the potential for everlasting bliss,…but also run the risk of constant bickering…and an ugly divorce.…While an individual may choose marriage…for emotional and/or procreation reasons,…a company must always use strategic logic…to decide whether or not to get into an alliance.…This is especially true when entering an emerging market,…since it's often difficult to enforce agreements…or contracts in these markets.…
In some cases, a government's policy might dictate…that the company partner with a local company.…For example in China,…every foreign car company,…such as General Motors or Volkswagen,…must work with one or more local joint venture partners.…If it wants to manufacture and sell cars within China,…the only open question may be which company to partner with.…Similarly in India,…every foreign multi-brand retailer, such as Walmart,…must operate their joint venture with an Indian company.…
However, in many other cases,…foreign companies are not constrained…
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The PMI Registered Education Provider logo is a registered mark of the Project Management Institute, Inc. Which emerging markets should you enter? How do you enter the targeted market? Do you partner with another company, or go it alone? How should you deal with the regulatory constraints that you might face? Anil and Haiyan address these questions, and more. They also outline some of the issues that arise once you have entered an emerging market, such as how to win out over local competitors, market to the bottom of the pyramid, and deal with the speed of fast-changing market dynamics.
- How emerging markets differ from developed markets
- Designing entry strategies
- Identifying the right beachhead
- Competing and succeeding within the market
- Cultivating and leveraging the local ecosystem
- Dealing with rapid changes in market dynamics
- Leveraging China and India as global platforms
- Building the leadership for emerging markets