What makes emerging markets attractive for international business? Discuss emerging markets as target markets, as platforms for manufacturing, and as sourcing destinations.
Emerging markets like India, and China presents some of the most unexploited markets. These markets offer international companies opportunities for growth through their ready market and available labor. The emerging markets also present the international companies with a permissive and well structured markets market, with friendly business environment. As a platform for manufacturing, they present the best infrastructure for manufacturing as the raw materials are not fully exploited and then infrastructure is available. On the other hand, as sourcing destination, the emerging market presents the cheapest, competent and ready labor forces. All international companies would like to establish their officer because of the friendly laws, ready market, cheaper labor force and competent staff who are knowledgeable in wide range of disciplines
Describe the various advantages that firms like Tata employ to become large industrial conglomerates. How can Tata use these advantages to succeed in foreign markets?
Large companies such as Tata have many advantages that they can employee to succeed in foreign markets. These include the ability to innovate and adapt to the new environments. Tata group of companies is a highly flexible company that can along its resources to the market competitiveness. Second, the company has adequate capital to deploy of market and or production strategy in the market. Thirdly, Tata group of companies has competent staff in almost all fields from research and development to forecasting. This means that Tata group of companies can easily evaluate the market and determine the forces at play. This way, they can develop appropriate strategy ranging from GHG emission to corporate social responsibility.