The paper "Emerging Markets Business Strategies" is an outstanding example of marketing coursework. Emerging markets is a topic that is widely discussed in various literature. The literature focuses on emerging markets progress and development (Meyer 2004, p. 255). Emerging markets have become increasingly the primary drivers of the world economy. However, they cope with various challenges that obstruct or slow down their progress. These challenges need to be confronted so as to ensure that their economic expansion is sustainable and successful. In this paper, the term emerging markets is used in describing a list of higher and income economist amongst countries that are developing.
The countries that are currently termed as emerging markets were recognized as being poor in the 1950s. The term poor is conceived as being politically incorrect thus the term lesser developed replaced it and currently, they are referred to as developing countries (Pillania 2009, p. 89). In the Cold war period, the aforementioned countries were recognized as Third World and afterwards, they were known as non-aligned nations. Presently, they are recognized as emerging markets. Examples of emerging markets are found in Southeast Asia, China, Middle East, East Asia, Latin America, and Central and Eastern Europe (Jimenez 1997, p. 103).
Studying of an emerging market is significant in order to comprehend their demographic features. Emerging markets are homes to more than eighty-five percent (85%) of all the population in the world. Equally, their rate of growth is higher in comparison to countries that are already developed. Emerging markets significance is also linked to the role they play in ensuring world trade growth sustainability and the increased transformations amongst organizations conducting businesses.
The challenges faced by emerging markets are capable of influencing the sustainability and progress of various organizations’ operations in these markets. A sustainable business enhances market and social continuity as well as promoting the development of communities. Some of the challenges that confront emerging markets include high expansion rates, increased competition levels, lack of democratic and stable political systems, high degrees of central regulation and control over economic activities. Others are vast extremes of both poverty and wealth, business environments that are unstable, scarcity of human capabilities, skills and resources (Marotta 1995, p. 393).
In reference to the above challenges, this paper analyzes types of strategic approaches that firms can apply when doing business in emerging markets. Multinationals and Emerging Markets Multinational companies exhibit the ability of testing waters and establishing footholds in emerging markets. This is achieved by exploiting emerging markets natural endowments in the absence of any modifications. For multinationals to access resources and talents as well as reach customers in the emerging local, middle class and segments in the bottom market, they have to adapt their organizational structures, business processes and product offerings in accordance with the institutional voids (Pangestu 2010, p. 17).
In emerging markets, it is extremely difficult for a multinational firm to adapt because of various reasons. In order to access customers in various segments in the market, the companies need to figure out the difficulties that exist in differentiating the market segments based on income. Therefore, local knowledge plays a significant role in targeting a market segment effectively.
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