The global importance and the international marketing strategies
applied by emerging multinationals
The world become globalization through the economic, political, cultural, ecological, and ideological. Global economic and political ties more closely; cultural communications are very frequently; global warming, sea protection and other environmental issues need all countries to cooperate to solve. In the multipolar world , the "BRIC" (Brazil, Russia, India and China) ,G20 such emerging economics have an more impact to the world.
World multiplarization and economic globalization make the emerging market developing very fast which stimulate the booming of EMMNs (Emerging Market Multinationals). Here is some data already illustrates these new changes. Developing markets accounted for 60% of incremental world GDP from 2000 to 2010. Over the next decade, most of the world’s expected population growth of approximately 750 million people will be in these economies . Emerging market hedge fund capital reached a record new level in the first quarter of 2011 of $121 billion，which only have 0.4 percent of word outward foreign direct investment(FDI) and 15.8 percent by 2008 .And the numbers of the multinationals from emerging economies are estimated 21,500 multinationals.
After economic crisis, Companies from emerging nations are facing increasing competition in their home marketplaces and are venturing abroad in a bid both to secure resources and to better service foreign demand. Looking for new marketing and needs of advance management and technology are pushing them to go out. They have their own advantages, both country-specific advantages and firm-specific advantages for EMMNs: Natural resource endowment, multiple Human capital, large Market size and growth, Per-capita income, low Wage levels; As to firm, Optimizing products and process for emerging markets, Operational excellence, project execution, late-mover advantages,privileged access to resources, Adversity advantage,and Traditional intangibles.These made the EMMNs to be international competitive .
But the EMMNs are usually faced with an unusual paradox. Emerging multinationals are usually suspected of planning to transfer jobs to low cost countries, of “stealing” technologies and even threatening national interests of host countries. They may face the tariff barriers, the Anti-dumping lawsuit, national protectionism. On the other hand, competition from mature international company, poor brand image, lake the science management and advance technology, the investment and international talent pool, international business experience, language and culture problems make them lost their way when they go out to the International market or to be localization.
It’s important for the EMMNs know the global environment, national situation and company capacity and then how to choose an appropriate international marketing strategy according to the...