- Tags:
- Show more
- Pages:
- 1
- Words:
- 275
Competing with giants: how local companies can survive in emerging markets Student’s Name Institution Many local companies all over the World have found it tough in the recent past owing to an influx of multinational companies thanks to the crumbling of protectionist barriers. The major reason for this is that governments have started to favor free trade as opposed to protectionism as the driver of economic growth. Local companies, however, regard the arrival of multinationals as the end of their business. They can’t simply compete with the seasoned management and marketing skills, powerful brands, superior products, advanced technology, and finances wielded by the companies. However, this does not necessarily have to be the case. If these local companies employ good strategies, they can maintain their initial share of the market. The following are some of the strategies they can employ: 1. Utilizing their home advantages to serve a certain niche of customers While many people are attracted to foreign products, many still maintain their liking for only local products. A company may choose to focus on this consumer niche to maximize its sales and earnings. Having been in the market for long, it may have various advantages over foreign companies how may try to wrestle it from this niche. These include a good understanding of the local preferences, existent customer relationships, and expertise in local products. One such company is the Chinese-based Tencent which has maintained the lion share of the social media market due to an understanding of local behavior (Thompson et al., 2016). 2. Explore shortcomings in the available distribution networks At
Leave feedback