indigenous business entrepreneurs

the opportunities within emerging markets increase, indigenous business entrepreneurs are beginning to establish their own ventures within their home countries. In some ways these businesses have an advantage over those from developed countries, as they are more aware of the unique cultural foundations, particular needs and wants of the citizens and complexities of navigating the political and social climate of their home country. But, these local entrepreneurs still face challenges. Competing against better funded, more organised multinational businesses can be a daunting task and careful consideration must be given on how to best leverage the advantages.
In the Required Readings for this week, some of the focus is on how multi-national corporations can become more successful within emerging markets, while other readings focus on how businesses in emerging markets can keep multinational corporations (MNCs) at bay. Assume that you have been asked to advise a local business in an emerging market. The owners are concerned about the possibility of a multinational organisation entering the country and curtailing their ability to do business.

1. How could you use the concepts introduced in the articles for this week to benefit the emerging market small business owners?
2.What course of action would you suggest to protect the business from encroachment?

3.How can an emerging market business determine if it is better to collaborate with a business in a more developed nation, collaborate with one in an emerging nation, or simply remain independent?

4.What are the advantages of each course of action?

 

In this article, the authors examine how local organisations are working to keep their businesses running and stop the intrusion of multinational corporations (MNCs) into their emerging market.
Chandra, M. & Neelankavil, J.P. (2008) ‘Product development and innovation for developing countries: potential and challenges’, Journal of Management Development, 27 (10), pp.1017-1025, Emerald [Online]. University of Liverpool Library link: http://dx.doi.org.ezproxy.liv.ac.uk/10.1108/02621710810916277 (Accessed: 14 October 2010).

In this article, the authors discuss the challenges for building a business in new product development within an emerging market. Proper analyses are key when structuring a new process for the growing organisation.
Fan, Y. (2008) ‘The rise of emerging market multinationals and the impact on marketing’, Marketing Intelligence & Planning, 26 (4), pp.353-358, Emerald [Online]. University of Liverpool Library link: http://dx.doi.org.ezproxy.liv.ac.uk/10.1108/02634500810879269 (Accessed: 14 October 2010).

This brief article offers a unique perspective of the development of emerging-market-based multinationals and contrasts their impact in expanding markets in contrast to developed market organisations seeking the same or parallel expansion opportunities.
Gadiesh, O., Leung, P. & Vestring, T. (2007) ‘The battle for China’s good-enough market’, Harvard Business Review, 85 (9), pp.80-89 Business Source Premier [Online]. University of Liverpool Library link: http://sfxhosted.exlibrisgroup.com.ezproxy.liv.ac.uk/lpu?genre=article&isbn=&issn=00178012&title=Harvard+Business+Review&volume=85&issue=9&date=20070901&atitle=THE+BATTLE+FOR+CHINA%27S+GOOD-ENOUGH+MARKET.&aulast=Gadiesh%2c+Orit&spage=80&sid=EBSCO:Business+Source+Premier&pid= (Accessed: 14 October 2010).

This article focuses on the competition for those midlevel consumers in China who have traditionally purchased foreign goods but are now able to obtain locally produced goods. This trend could have long-term effects on the market if China begins to export more products aimed at this consumer population.
Ghemawat, P. & Hout, T. (2008) ‘Tomorrow’s global giants’, Harvard Business Review, 86 (11), pp.80-88, Business Source Premier [Online]. University of Liverpool Library link: http://sfxhosted.exlibrisgroup.com.ezproxy.liv.ac.uk/lpu?genre=article&isbn=&issn=00178012&title=Harvard+Business+Review&volume=86&issue=11&date=20081101&atitle=Tomorrow%27s+Global+Giants.&aulast=Ghemawat%2c+Pankaj&spage=80&sid=EBSCO:Business+Source+Premier&pid= (Accessed: 10 January 2011).

According to this paper, multinational corporations can expand their presence and beat local adversaries at their own game by creating new customer segments, managing cost convergences or reworking the value chain.
Li, J. & Matlay, H. (2006) ‘Chinese entrepreneurship and small business development: an overview and research agenda’, Journal of Small Business and Enterprise Development, 13 (2), pp.248-262, Emerald [Online]. University of Liverpool Library link: http://dx.doi.org.ezproxy.liv.ac.uk/10.1108/14626000610665953 (Accessed: 7 December 2010).

Through a critical review approach, the authors of this paper review the unique state of entrepreneurial development in China. They evaluate how the ventures begin, how networks develop and how entrepreneurs are able to generate legitimacy for their business. The authors argue that existing local entrepreneurial theories must continually be revised in order to account for reforms and new developments that affect China’s economic environment.
Numerof, R.E., Ott, B. & Abrams, M. (2010) ‘Grow it globally’, Marketing Management, 19 (1), pp.30-35, Business Source Premier [Online]. University of Liverpool Library link: http://sfxhosted.exlibrisgroup.com.ezproxy.liv.ac.uk/lpu?genre=article&isbn=&issn=10613846&title=Marketing+Management&volume=19&issue=1&date=20100301&atitle=Grow+it+Globally.&aulast=Numerof%2c+Rita+E.&spage=30&sid=EBSCO:Business+Source+Premier&pid= (Accessed: 10 January 2011).

The authors of this paper describe various steps a popular brand in one country may follow in order to compete abroad, such as price adjustment and adhering to local regulations.
Return to top