Tuesday, April 28, 2015

Emerging Markets

The article Strategies that Fit Emerging Markets discusses how difficult it can be to enter an international market. It is important to invest in developing countries to remain competitive. To limit risk, the article suggests analyzing each countries political and social system. Then, the level of openness and the quality of labor and cost. You will then avoid markets that are not emerging or profitable.

Wal-mart is an example of an impactful global strategy. You do not get to be the retail giant that it is without strategy. Just like many other companies, Wal-mart needed to grow to stay successful. Globalization offered large platforms for growth and needed to keep up with the competition. In the beginning of their globalization venture, they knew they could not afford to branch out everywhere. For the first 5 years they concentrated on just a few key areas. Asia had large potential for Wal-mart , but did not make sense logistically at the time. Wal-mart's growth rate was quicker than its competitors. Even though Wal-mart had to implement a different strategy than in the US, they were successful.

http://www.strategy-business.com/article/13866?pg=all

It is important for any company looking to take their business global to have a plan set in place. Take Coca-Cola for example. They were looking to expand their market and to do so, they had to adjust to changing market preferences. Coke tastes differently in certain countries because of differences in opinion.

https://www.boundless.com/management/textbooks/boundless-management-textbook/strategic-management-12/common-types-of-corporate-strategies-90/global-strategy-436-1455/

This shows that it is important for any company to be prepared to make adjustments in the way they have done business in the US. Globalization is entirely different process.

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