Emerging Market Multinational - Essay Example

Emerging Market International College: Emerging markets are currently taking over as the progressive drivers of the globalmarket economy, drawing increased analysis and attention in emerging markets international since early 1990s. The attention can be observed from the perspective of demand and supply. The increasing public campaign among the larger population, increasing income as well as emerging international economies has provided a vast market for goods and services. The increased innovation among talented labor, low costs of production, and the emerging economies are supplying and better quality goods and services to the international competitive market.

1 Huawei is an emerging market international who is a leader in producing electronic. It operates in the telecommunication and computing industry providing data management as well as production of mobile phones, computers, networking devices. It is a Chinese giant company with a lot of workforces. The company has faced a lot of opposition from globalizing its operations but has also developed competitive strategies that have helped in its growth to compete internationally.2 Multinational organizations like to perform a very significant part in global business and economy growth; this has led to increased attention in research and elucidation for emerging markets and multinationals.

One of the competitive strategy that Huawei employees in its operation to gain a competitive advantage is the cost leadership. This strategy uses means of economies of scale to supply their products and services at the lowest cost to their customer. When companies are able to deliver welfares to the customer than those of competitors then differentiation occur. The differentiation here can define to include exceptional features that involve the products and services themselves, the delivery methods, or publicity techniques.

 Overall, the Huawei organization creates value for its customers that consequently lead to greater profits for the organization.3 The company also creates a temporary hypercompetitive environment as a strategy for competition. The company temporarily disrupt the market for some period of time on the basis of pricing, providing the best quality, quick timing of customers demand, knowledge and financial resources with the aim of outlasting competitors. Through this conceptualization, the company is able to make huge sales and build a good brand and image in the global market.

4 Foreign direct investment is another competitive strategy that Huawei has employed to outdo competitors. The company has found a means of globalizing and entering new markets through investing in foreign nations. The foreign direct investment has many advantages, including: availability of low-cost labor, evading high importation taxes, minimizing the cost logistics to a new market, easy access to readily available raw materials and technology, and as means of acquiring entry in to market. The form of foreign direct investment employed by Huawei is establishing manufacturing operations with other companies throughout the world.

This form of foreign direct investment has continued to increase the company’s operations and prevent barriers for free trade, it has also eliminated other competitors. Huawei also employs has a talented workforce with innovative and inventive capabilities to use new technology. The application of new technology gives Huawei advantage of improved quality in operations. The new technology has enabled the company to employ online sales and marketing. They have also created websites to provide more information about the company.

5 Bibliography Chang, Sea Jin, and Dean Xu. "Spillovers and competition among foreign and local firms in China." Strategic Management Journal 29, no.5 (2008): 495-518. Li Sun, S. "Internationalization Strategy of MNEs from Emerging Economies: The Case of Huawei." Multinational Business Review 17, no.2 (2009): 129-156. Luo Y. and Rui H. "An ambidexterity perspective toward multinational enterprises from emerging economies." Academy of Management Perspectives 23, no. 4 (2009): 49-70.