Emerging Giants

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Emerging Giants

The last two decades have seen a wave of countries opening up to the world economy. Liberization have removed the protectinonist barriers in the developing countries, and as a consequence, multinationals from North America, Western Europe, Japan, and South Korea stormed into the emerging markets. They build two fundamental advantages over that markets, first they are well established and second, they can leverage their access to vast resources in their home markets. Faced by the success of these multinationals, local companies lost market share or sold off businesses, but some fought back. Those witch fought back are the emerging giants. This article speaks about that companies that are emerging aroud the world as part of the biggest shift in the global economy since the Industrial Revolution of the 18th century. Companies that are gaining competitive advatages against the big multinationals. They are hiring people from anywhere in the world. Engaging Ogilvy & Mather to do their advertising. Using McKinsey for their strategies… These emerging new mutinationals are using different strategies reflecting their strenghts, and this article is summarizing many years of studies on these emerging giants and citing the main three strategies these businesses used to become effective global competitors and face their global rivals despite facing financial and bureaucratic disadvantages in their home markets. Some are exploiting their unique knowledge of domestic product markets; Haier group in China, for example, discovered that Shanghai residents had crowded living conditions, and that there was no space for a large refrigerator. As a result, Haier designed a smaller one specifically for the shanghai market, and sales subsequently surged. This sensibility to local conditions helped in Haier’s worldwide expansion as well. Some have exploited their knowledge of local talent and capital markets, thereby serving customers both at home and abroad in a...
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