The paper "Multinational Corporation from Emerging Markets" is a good example of business coursework. An emerging market is considered as an economy that is transforming from a dictatorship to a free market. Most of the emerging markets are based in Asia, Africa, South America and some parts of Europe. In an emerging market, the middle class is expanding and the quality of life is improving (Khanna & Palepu, 2013). An improvement in living standards plays an important role in ensuring that citizens are able to afford basic services. An emerging market offers a huge opportunity for a multinational corporation.
This is because of the ready market that is in place. The BRICS countries are considered an emerging market since the economy in those countries is increasingly becoming stable (Claessens & Yurtoglu, 2013). However, it is also important to note that an emerging market has not yet obtained the status of a developed country. The fast rate of economic growth means that businesses can thrive and the multinationals can easily access the local market. China is one of the emerging markets that have attracted multinational corporations from different parts of the world.
Johnson Electric is one of the top multinational corporations that were established in China. The company has been able to register a considerable percentage of growth in China as well as other countries (Johnson Electric, 2016). A multinational corporation is however bound to face some challenges when operating in the foreign market. The firm-level and country-level factors play an important role in influencing the success of a multinational corporation in the emerging markets. The paper thus discusses the firm level and country-level factors that have contributed to the success of Johnson Electric from in China. Discussion Firm-level factors that have contributed to the success of the company The company has put in place a research and development center in China where it is operating.
Research and design center at the company has played an important role in terms of developing new products in the market (Hong & Hong, 2014). The new products that are usually developed are usually in line with the taste and preferences of the local people. Through research and design, the company has been able to establish the needs of the local people.
In China and other countries where it operates, the local products are highly valued and the companies that develop the products that meet the needs of the local people usually achieve a lot of support. Through research and development, the company has been able to improve on its ability to be innovative. The use of innovations has been useful to the company in ensuring that it is able to meet the needs of the people (Hong & Hong, 2014).
Expansion of a business is an important factor that facilitates its growth. The strategies of the company with regards to expansion are based on research and development. It is through research and development that the company has been able to expand to in different regions. The company has been able to achieve a lot of growth and expansion by understanding the needs of its customers. It is through research and development that the corporation has been able to blend different cuisines. Currently, the company has been able to import different types of products which have been successful in the global market.
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