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Strategies from the New Emerging Market Competitors

When I was in China several years ago, I felt that the firms there would eventually become leading global players. And now it’s happening, and a new book, The New Emerging Marketing Multinationals by Amitava Chattopadhyay and Rajeev Batra (with Aysegul Ozsomer) explains how. The authors report a study of some 39 firms that have made a move toward global prominence.

There are four strategies that have been employed by EMNCs (emerging multinational corporations).

The first: Acting as a cost leader by leveraging local low-cost human resources to provide low-end products, often starting with private-label brands that gain volume sales in their home market and in other assessable markets as well.

The second: The knowledge leverage-er who draws upon specialized knowledge of customer needs when the conditions are privative and the income is low. The…

July 3, 2012 • Permalink