Emerging markets 'Eupolyphaga' How to Kill Giantsi dark horse: In the past two years, breaking the liberal tide of protectionist barriers in developing countries. As these countries with the world economy, multinational companies from North America, Western Europe, Japan and South Korea flocking. Many local businesses lose significant market share, and some even had to sell the company to a foreign competitor. However, some companies do not give Air Jordan 18 in, but to fight back. They stopped a foot in the competition, restructuring its business and develop new business opportunities. Best of them established itself as a world-class enterprises, and make their international rivals suffered a lot. In 2003, India's Mahindra (M \u0026 amp; M) produced by Scorpio SUV car won the Car of the Year by the CNBC and BBC India named. This is undoubtedly a great achievement, \u0026 ldquo; Made in India \u0026 rdquo; beat including Mercedes \u0026 middot; Mercedes-Benz E-Class and Toyota Camry, including international brands, won the highest honor in the automotive world. For M \u0026 amp; M (a tractor manufacturing enterprises, mainly for India's urban and rural markets), this award has finally announced the ability to Nike King pose a challenge to the world-class automobile manufacturer. In the domestic market, in competition with other multifunction Scorpio models in victory, which fall by the wayside including the Toyota Innova and GM Chevy Tavera; international markets, M \u0026 amp; M successfully landed in South Africa and Spain. There is no doubt that this Indian company is a world-class automotive companies. Companies developing world attention not only M \u0026 amp; M company a. In the past two years, breaking the liberal tide of protectionist barriers in developing countries. As these countries with the world economy, multinational companies from North America, Western Europe, Japan and South Korea flocking. Many local businesses lose significant market share, and some even had to sell the company to a foreign competitor. However, some companies do not give in, but to fight back. They stopped a foot in the competition, restructuring its business and develop new business opportunities. Best of them established itself as a world-class enterprises, and make their international rivals suffered a lot. Some of these companies to compete in the international market, such as: Brazil, InBev, SACI Falabell Chile, China's Baosteel, Galanz, Lenovo and Huawei Technologies, India's Infosys, NIIT, Ranbaxy, Satyam, Tata Group and Wipro, Israel The Teva Pharmaceuticals, Mexico's Cemex, the Philippines, Jollibee, South Africa's SABMiller. Some of the major operators in the domestic market, such as China's Wahaha Group, India's Bharti Tele-Ventures and ITC. These have globally competitive enterprises to adopt a strategy of how to overcome the challenges of the local environment? How they will convert their home advantage for the international competitiveness? Whether their business practices have universal? With these questions, we started six years ago, the study of local enterprises in developing countries. Our research focus, not economic policy to create a world-class enterprise in the role, but concerned about the company's own strategy and business model. Our research is the 134 enterprises from Argentina, Brazil, Chile, China, India, Indonesia, Mexico, Poland, South Africa and Turkey. We analyzed their business strategies and stock market performance, and found some interesting behavior samples. Advantages and Disadvantages of space transposition surface, multinationals from the US, Europe and Japan has an unparalleled competitive advantage in developing markets. They have a world-famous brand, innovation and sophisticated management system and the country's science and technology development, and, thanks to sophisticated financial systems in developed countries, the education system and the human resources market, these companies Air Jordan 9 Retro have a wealth of financial Air Jordan 5 Retro and human resources. In contrast, the lack of adequate infrastructure in most developing countries soft effectively run their market mechanisms. Missing system (institutional voids) resulting in these countries lack professional intermediary services, supervision system and contract enforcement mechanisms, resulting in local companies in developing countries is difficult and capital markets and high-level talent market docking. But these local companies for the following three reasons to overcome their various disadvantages: First, when multinational companies to enter developing country markets, they must face the same system missing. However, the company's management staff are accustomed to working in a mature market environment, it is relative to the local companies, they will be faced with the difficulties often ill-prepared. Due to the lack of adequate market research data (since these countries lack specialized agency), they are difficult for the company's product and market strategy decisions. Lack of a stable and efficient logistics and distribution system makes it difficult for them to build the usual business model. The other hand, managers of local companies, many years of local experience so that they know how to operate the company in the absence of economic institutions of environment, and can quickly and efficiently identify and meet the needs of local consumers. Second, when local companies to obtain a certain degree of success, they may open the way to the capital and labor market access. European companies like as they can to raise funds listed on the New York Stock Exchange or Nasdaq. Due to the rapid economic development of developing countries, they often become a developed country in droves investment objectives, which makes them easy to sell the company's shares and bonds. And professional intermediary organizations from developed countries to help local companies make up the gap on soft power. Especially in recent years, business schools in developed countries for those companies a lot of management personnel. Third, managers easily overlooked point, multinationals often unable to, and has no intention to develop an appropriate strategy for each developing country markets. Since the market is relatively small number of developing countries, the risk is very high, these companies found: improve the company's products or services required to fully meet the costs of local tastes too high, too complex. Moreover, as these companies organizational processes and cost structures, they are difficult to spot optimal pricing in the local market to sell their products. Therefore, these companies often last only struggling to survive in the ultra high-end niche market. While local companies are no such restrictions, the number of areas they operate less. In fact, we found that once local companies can improve their product and service quality, they will better meet local market needs than the multinationals. Home advantage: a unique market structure market structure in developing countries is another advantage of the local companies and multinational competition. Most of the product markets in developing countries consists of four layers: The first layer is the international level, in this layer of consumer needs international quality and functionality of the product, and are willing to pay for \u0026 ldquo; international standards \u0026 rdquo; the price; The second layer is the middle layer, and consumers need international quality products with local features, they are willing to pay the price slightly lower than the international level; the third layer oriented soil, consumers need quality and function of local products, they only can pay \u0026 ldquo; Local \u0026 rdquo; price; fourth layer is the bottom, consumers can only buy the cheapest product pay. The capital and the labor market in developing countries are mostly composed of this construction. Since the system is missing, multinationals find their products can only meet the needs of the first layer of the market, but it is difficult to meet other levels of consumer demand. In the product market, due to the lack of professional market research, they are difficult to understand local consumer tastes. And because there is no established distribution system, they are difficult to sell products to remote areas. In the labor market, they lack knowledge of the local talent pool, and therefore can not design effective policies to attract and motivate the intermediate layer, the local level and the underlying talent. When a developing country's market open, all the multinational companies are flocking to the international level, while local companies dominate the local level. While the underlying market has great potential, but multinationals need to drastically change its business strategy to open this market. Therefore, the intermediate layer has become multinational and local companies battleground. Some local companies take full advantage of their understanding of the local market to achieve competitive advantage for multinationals, they mainly adopt the following three ways. Looking for niche markets in some developing countries to fully understand the local companies use local products on the market, transformed himself to a world-class enterprise. They adjust themselves to local markets unique consumer groups and business ecosystem. And that they explore the similarities between developing markets, we will reach into overseas markets. Jollibee's hamburger provides compliance with Filipino tastes sauce and garlic taste; Nandos chicken company in South Africa is full of local flavor; PolloCampero also the case in Guatemala. In the past decade, these companies and McDonald's, the international food and beverage giant Parkson competition not strive. And they use their unique strengths to break into the overseas ethnic groups present, such as Jollibee company in Hong Kong, the Middle East and the Filipino American community in California has a market, and PolloCampero products are exported to America, Ecuador, Honduras and Mexico Latin communities. In China, Haier defeated GE, Electrolux and Whirlpool has become the market leader in white goods, mainly due to Haier developed to meet local needs. For example, when Haier know in some rural areas in China, it was with a washing machine to wash sweet potatoes and other vegetables, they can take advantage of the development of a clean vegetable washing machine; in China's coastal city of wet weather so that people need Nike Air Force 1 to frequently change clothes, Haier on the development of a small washing machine, this model more power than the average washing machine, water. This washing machine in Shanghai, Shenzhen, after the launch was a huge success. Once access to developed country markets, these companies generally avoid direct competition with multinational giants, but to use their strengths, focus on a niche market, with a foothold in the competitive market with Haier to occupy the United States Compact refrigerators (mainly Use in the student dormitories and hotel rooms) 26% market share. As the domestic market continues to mature and their own, they will continue to increase the share in developed markets. Use of local resources and some local companies use their own factors of production in the local market \u0026 mdash; \u0026 mdash; talent and capital market advantages, efficient and low cost for local and overseas customers service. Indian IT services companies such as Tata and Infosys is one of the best, on the one hand because of India's education system, in recent years, training a large number of engineers and IT technicians, these local companies can lower costs to hire these engineers, other On the one hand, multinational companies such as Accenture and EDS would be difficult in the country that the uneven quality of staff skills and education to effectively attract talent, in fact, with cities such as New Delhi, Mumbai, people gradually saturated output capacity, local companies the competitive advantage of the talent market has been expanded, as multinational companies from India can not second-tier cities and the introduction of talent selection. In overseas markets, the company acquired the US and European small consulting firm, to provide customers with high-end solutions, which further weakened the competitive advantage of multinational companies. Some companies use their own advantages in the production and logistics chain, such as Air Jordan 7 Retro the British industry China Taiwan, which is one of the personal computer and the world's largest processor manufacturers, its customers can enjoy its low labor costs and the security and stability of logistics system. Recently, the company is in Taiwan and mainland China sold their own brand of mobile phones and computers, it is easy to imagine that soon it will be in direct competition with its own customers. Missing system into business opportunities The third method is to fill the missing local companies in developing markets system. While some institutions are controlled by the government, but local companies can play a mediating role in the product market and factor market to develop themselves. These intermediaries include banks, venture capital organizations, private equity funds, accounting firms, quality certification, trust organizations and rating agencies. In these areas, local companies have an unparalleled advantage. First: the nature of some of the agency's work is people-oriented, which requires local language and culture, a deep understanding; Second: Some jobs are information-based, which requires local expertise to collect information and analyze the dispersion of uneven quality missing data; third: Some agencies, such as: banking, media and financial services organizations in developing countries government attaches great importance to the regulatory objectives, many multinational companies can not enter the market, or forced to set up joint ventures with local companies . In addition, as described above, the resource market is divided into four levels. TNCs can only meet the needs of customers at the international level, while local companies are able to meet the needs of other levels. For example, a multi-national banks can only provide services to those large blue-chip companies, because these companies to provide high-quality earnings and in the overseas market, assess their credit well. However, it is difficult to assess the credit for SMEs. The local banks with a wealth of local knowledge and information channels, better services for these companies, such as Turkey's Garanti Bank and Akbank. The importance of proper implementation and management of the development of growth strategies for local enterprises is essential, but can also develop your potential depends on the execution and corporate governance. Our research shows that high performing and sound corporate governance in developing markets are more rare and important qualities. Only companies with a high market executive power to get the rare financial and human resources; a lack of spirit of the contract market, good governance in order to ensure that the company promises to shareholders, customers, employees and stakeholders, which They will be invaluable assets. Style corporate governance of local enterprises is different, the level of protection States to shareholders, employees and consumers uneven around corporate governance related laws also vary. But only those who strive to protect the interests of shareholders and employees, and the two sides can enjoy the return of the investment company to become a true giant. Internationalization necessary? The answer appears to be yes, because the history of great companies are entering foreign markets. Global vision and business performance to some extent there is some contact. But do not look at this link superficially, but depends on whether the company will be a global vision into a competitive advantage. Our research found that, \u0026 ldquo; All roads lead to Rome \u0026 rdquo ;, some rise of local companies operating in Nike Shoes several countries, some only in the local operations. In fact, the UNCTAD list of 50 large companies from developing countries, the international market is only worth 40 percent overall. More importantly, the performance of those who realize the internationalization of local companies and no better than the \u0026 ldquo; the local operations \u0026 rdquo; the company. Therefore, those emerging giants in the domestic market can develop well.