Tuesday, December 8, 2015

Diving into an emerging market

A business needs to evaluate and know exactly what is required when doing business in a emerging international marketplace.  The business model that has proved to be successful in one country could possibly put a company under in another part of the world.  Specifics regarding salary, labor pool, taxation and how their product would  be received by that countries population would be monumental in determining if they should invest in that marketplace. 

A company should have international experts in place that have the ability to provide information pertinent to that country.  It is well known that information regarding consumers is not reliable in emerging countries because market research is in it's infancy as stated in the Harvard Business Review "Strategies that Fit Emerging Markets".  A business must also take into account that skilled labor may be hard to find. 

Being able to identify institutional voids is paramount to crafting a plan to dive in to a specific emerging marketplace.  A company needs to take into account the political atmosphere in a country prior to making a decision on a joint venture, acquisition or to build a plant or even an office building.  The specifics of product development and intellectual property rights will enable a business to have the confidence to hire and train a local workforce.

Diving into an emerging market takes time and research before a company invests their money and knowledge into unknown waters.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.