Emerging Markets

Competitive Environment in Emerging Markets: An Economic Perspective of Managing Competition

Competitive Environment in Emerging Markets: An Economic Perspective of Managing Competition

Introduction

Companies leading already in their world of businesses are now spreading their wings towards emerging markets with innovative business strategies. These markets provide different areas of investment for the developed economies. Today, they have become even more central since the growth potential seems miserable in more developed countries. The west part of the world is adapting apparently new and competitive environment, with not-so-familiar customers, competitors and challenges. The probability of new risks always remains high in emerging markets, which need to be determined and since theft of intellectual property is mounting, financial concerns will continue to rise. This whole process may seems tough and slow but, the truth is emerging markets have always survived local and international challenges.

Problem Statement

Emerging markets are considered highly attractive arenas as they offer new ways of businesses when compared with the ones in European nations and the United States. However, western companies are confronting new competitive dynamics which needs to be understood. These markets are taking every possible opportunity they come across and are fully aware that how to get the desired advantages and so they formulate their capabilities accordingly. According to Khanna, T. & Palepu, K. G. (2010), “a small but growing set of these companies has built world-class capabilities to challenge global rivals in their home countries and even in developed markets. Cemex (Mexico), Infosys (India), South African Breweries (now SABMiller), and China's Haier Group are making marks on international commerce by competing successfully world-wide. Other companies, such as Bharti Airtel (India), China Light and Power, Koc Group (Turkey) and Petrobras (Brazil), are viewed as world-class companies because they have successfully grown their businesses and defended their turf domestically” (pp. 127-128).

Business in such markets requires knowledge of cultural dissimilarity; focus on the target audience and dodging all possible risks.

Thesis Statement

The study will identify factors of highly competitive environment in emerging markets of the world and the economic reasons influencing management in such circumstances.

Purpose of the study

The study will investigate and explore various aspects of the global emerging economies, especially in Asia, in order to understand the competitive environment in detail. Its prime focus will be on pointing out factors surrounding theses emerging markets, the investments risks involving them, formulation of management strategies to overcome those risks and above all, discussing ...