The Tugof War Between Developed and Emerging Market Origin Companies

„The Tugof War between Developed and Emerging Market Origin Companies“

Andrea Labusová

Atlantis University

November 15, 2016 /Week 4/

1.

This article is about how companies can dominate within the global market. In this occasion, economic development is very fast. Companies, if they want to be successful must adapt to this trend. The article points out what should the companies expect to fight against, what challenges companies must face in developed and emerging markets. The article also talks about different market conditions, about consumer requirements, about using digital media and advanced technologies. It is also about the analysis and discussion to choose the best business model that it will work and it will be successful in the global competition. The article has many examples of companies which will allow us to better understand the topic.

2.

        The first critical issue for local companies. When multinational companies enter the local market, it is good for local customers because companies bring new products, new services and usually at a lower price. However, local businesses become endangered. Mostly local companies cannot compete, since global companies have advanced technology, greater financial resources, better marketing and management. For example: The Indian scooter industry, Bajaj has survived the competitive struggle with the multinational company Honda. However, Bajaj started selling very cheap scooters and focused also on imports of spare parts.

        The second critical issue is: When a company becomes successful in the domestic market, then the company will consider the extension of branches abroad. They used the same methods, plans for the domestic market. However, they find they are unable to maintain the same at an international market.

        The third critical issue is innovation. Companies seek to provide the best services and products. They try to upgrade their services and products but it is a very costly process and not all companies will survive it.

3.

The first thing that I learned is that a company has to follow consumers‘ requirements. A company can’t follow just their certain plans. It is very important to use digital media like emails, social media, project teams, formal and informal networks. For example The Aditja Birla Group is a global manufacturer of metal. This is a multinational company because it operates in more that 40 countries. They started with digital media. It was very important for them to stay in touch with customers. They reached their customers with marketing. They could communicate with customers even in remote places, this is why, they were able to expand their influence across the globe.