Strategies That Fit Emerging Markets

Strategies That Fit Emerging Markets Below are the available bulk discount rates for each individual item when you purchase a certain amount Publication Date:June 01, 2005 This article includes a one-page preview that quickly summarizes the key ideas and provides an overview of how the concepts work in practice along with suggestions for further reading. […]

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Strtegies Tht Fit Emerging Mrkets

Below re the vilble discount rtes for ech individul item when you purchse certin mount

Publiction Dte:
June 01, 2005

This rticle includes one-pge preview tht quickly summrizes the key ides nd provides n oveiew of how the concepts work in prctice long with suggestions for further reding.

It’s no esy tsk to identify strtegies for entering new interntionl mrkets or to decide which countries to business with. Mny firms simply go with wht they know–nd fll fr short of their gols. Prt of the problem is tht emerging mrkets hve “institutionl voids”: They lck specilized intermediries, regulry s, nd contrct-enforcing methods. These gps hve mde it difficult for multintionls to succeed in developing ntions; thus, mny compnies hve resisted investing there. Tht my be mistke. If Western compnies n’t come up with good strtegies for engging with emerging mrkets, they re unlikely to remin competitive. Mny firms choose their mrkets nd strtegies for the wrong resons, relying on everything from senior mngers’ gut feelings to the behviors of rivls. Corportions lso depend on composite indexes for help mking decisions. But these nlyses cn be misleding; they n’t ccount for vitl informtion bout the soft infrstructures in developing ntions. better pproch is to understnd institutionl vritions between countries. The best wy to this, the uthors hve found, is by using the five contexts frmework. The five contexts re country’s politicl nd socil s, its degree of openness, its product mrkets, its lbor mrkets, nd its cpitl mrkets. By g series of questions tht pertin to ech of the five res, executives cn mp the institutionl contexts of ny ntion. When compnies mtch their strtegies to ech country’s contexts, they cn tke dvntge of loction’s unique strengths. But ft firms should weigh the benefits ginst the costs. If they find tht the risks of dpttion re too gret, they should try to chnge the contexts in which they operte or simply sty wy.

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Strtegies Tht Fit Emerging Mrkets


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