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Global StrategyCreating and Sustaining Advantage across Borders$
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Andrew Inkpen and Kannan Ramaswamy

Print publication date: 2005

Print ISBN-13: 9780195167207

Published to Oxford Scholarship Online: September 2007

DOI: 10.1093/acprof:oso/9780195167207.001.0001

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Global Strategy in Emerging Markets

Global Strategy in Emerging Markets

Chapter:
(p.152) 7 Global Strategy in Emerging Markets
Source:
Global Strategy
Author(s):

Andrew Inkpen (Contributor Webpage)

Kannan Ramaswamy (Contributor Webpage)

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780195167207.003.0008

This chapter argues that emerging markets represent the next big growth opportunity for the world's MNEs. The nature and characteristics of emerging markets are discussed, and the barriers that must be overcome to succeed in emerging markets are examined. The chapter suggests that the barriers call for radically new thinking on defining and implementing corporate strategies. It also argues that MNEs often make assumptions about emerging markets that are incorrect, leading to flawed strategies. The chapter discusses the ownership structure and control issues associated with emerging market partners, and argues that these are likely to be quite unique. Given unique organizational and structural demands and a customer base with different expectations about the product price-performance ratio, MNEs must adopt new and innovative strategic thinking in order to succeed in emerging markets.

Keywords:   growth, barriers, ownership, structure, innovation

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