Opportunities Regarding Export in Current Global Environment
In the current global environment, the developed markets are reaching a plateau. Therefore, it is necessary for companies to look for new markets to sell their goods. In this scenario, companies would have a number of opportunities to export. Emerging markets, with large populations, are hungry for new technology. Therefore, there exists an opportunity for companies in the developed world to export new technology items, such as consumer electronics goods. There is a wide disparity in educational levels. Universities can create local franchises in the developing world and extend their footprint. New ways of doing agriculture are sought for by the developing countries. Therefore, there exists a market for genetically modified foods and technology for implementing the same in the developing world (Kotabe & Helsen, 2010, p.2)
Characteristics of Emerging Markets
Emerging markets are characterized by low per capita incomes, but rapid pace of economic development. There are large income inequalities; the rich tend to get richer at a faster pace than the poor. A substantial proportion of the population of emerging markets tends to be drawn to migrate to the developed world. Invariably, the population in such markets is young and growing. While the infrastructure is under-developed, there are pockets of excellence. Most countries lag behind mature countries in technology development and implementation. Distribution channels and media infrastructure is largely under-developed (Kotabe & Helsen, 2010, p. 599).
BRICS and N-11
While the term ‘emerging markets’ is used to indicate countries in a phase of rapid growth and industrialization, some countries merit special attention. BRICs refer to Brazil, Russia, India and China. They account for 15 percent of the global GDP and are likely to surpass the G7 in terms of combined GDP.
N-11, on the other hand, is a moniker for the ‘Next 11’, and refers to eleven countries that would follow the BRIC nations in rivaling the G7: Bangladesh, Egypt, Indonesia, Iran, Korea, Mexico, Nigeria, Pakistan, Philippines, Turkey, and Vietnam (Kotabe & Helsen, 2010, p. 599).
The BRIC nations are currently more developed than the N-11. As a corollary, the BRIC nations account for 30% of the world’s CO2 emissions while the N-11 account for only 7%. Overall, the BRIC nations are more evenly developed than the N-11, which consist of a wider variation in development. For instance, Philippines is much more developed than Pakistan (Goldman Sachs, 2007).
Localization vs Centralization
Localization and centralization of web content have distinct advantages and disadvantages. Localized content is useful in case of language and cultural differences in audiences. If the web marketer wishes to have different promotional events in different regions, localization of content would be required. A deliberate difference in tone and nature of message would also necessitate localization (Smith, 2012).
Centralization would be required if there are insufficient resources to maintain separate identities across different regions. Centralized web content has the advantage of ease of management and consistency in the message. It is possible to build a larger base of followers with a single site. Centralization also serves to remove confusion in the minds of the consumers regarding which version to follow (Smith, 2012).
Term Paper: Analysis
The key decisions taken in the term paper related to:-
- Identification of countries to which the organic skin lightening cream, Naturelle, would be sold and
- The decision regarding a joint venture or an outright acquisition of a local firm.
- The mode of promotion and the concept of pricing.
Difficulties Faced in Research and Decisional Process
Many of the databases that are mentioned in the book are accessible only on payment. As a result, research into country specific economic aspects was hampered to an extent. In addition, research tended to be on an open loop; there was little corroboration from multiple sources.
Investment climate is a diffuse term. The world back defines it as ease of doing business (Doing Business, n.d.) and attempts to encapsulate the concept into clear and defined metrics, which have been used in the paper. However, in retrospect, investment climate may encompass many more factors than addressed by the World Bank report. As such, investment climate is a very important aspect in any decision to enter a market, and would normally entail much greater degree of research.
The index created for measuring the investment climate was based on normalization. However, better methods of arriving at relative scales may be possible with more research.
Only five countries were chosen for comparison while deciding as to which country to enter. In the real world, the choices would be larger.
A number of assumptions were made regarding the nature of markets in China and Japan. In the real world, surveys and primary research would be used to address queries about the markets and to present a more holistic picture so that more informed decisions could be made.
Promotional and pricing decisions would need a number of iterations before being considered well thought out and optimal.
Doing Business. (n.d.). Starting a business. Retrieved 06 Nov 2014, from http://www.doingbusiness.org/data/exploretopics/starting-a-business
Goldman Sachs. (2007). Beyond the BRICs: A look at the N-11. Retrieved 06 Nov 2014, from http://www.goldmansachs.com/our-thinking/archive/archive-pdfs/brics-book/brics-chap-13.pdf
Smith, H. (2012). Centralized vs localized social media presences for international brands. Retrieved 06 Nov 2014, from https://www.distilled.net/blog/social-media/centralised-versus-localised-social-media-presences-for-international-brands/
Kotabe, M.M., & Helsen, K. (2010). Global Marketing Management. New York, NY: Wiley.