Business and its Environment
Dr. Racz Matron and Dr. Márta Szabados
August 25, 2009.
Factors influencing the multinationals and local companies for the market position.
Couple of years before the policy maker decided to lower down the tariff barriers and to give permission for foreign investment. Multinational companies have started rushing into countries where they wanted to achieve the market position (Arindam K. Bhattacharya and David C. Michael) The entry of multinationals is good for the country as they bring with them newly products, advanced technology, reduce unemployment, and increase in GDP and many more. But it is not as easy as they think to achieve the market position because their entry is threat for the local companies. As local players and competitors started applying their own policies which multinationals cant copy and they keep their market position stable and to fail the multinational companies from achieving the success. But there are some cities where multinationals are successful and that place and cities have become the starting point for commencement of business (Rosabeth Moss kanter).
Multinationals and local firms for the first time are squaring off in China’s rapidly growing middle market, a critical staging ground for global expansion and the segment from which world beating companies will emerge (Orit Gadiesh, philip Levng and Till Vestring 2008).
In 2008, the Orit Gadiesh, philip Levng and Till Vestring says that the world leader Caterpillar in constructing equipment who started selling its equipment to china market as the Chinese government invested highly in the infrastructure, Caterpillar helped the pave for the growth and modernization in the worlds fastest growing market for construction equipment.