Entry strategies into emerging markets

Emerging markets present many diverse investment opportunities for global businesses. However, when and how global businesses enter into emerging markets is critically important.

‘Entry strategy in the Global Emerging Market (GEM) differs a great deal from entry strategy in developed countries. In the developed world, with minor adjustments, successful entry strategies can be effectively replicated in other foreign markets. In the GEM, if an entry strategy is not crafted to the specifics of the particular emerging market country, it is likely to fail’ (Kvint 2009: 301)

In this section, we will try to explore and understand the types of entry strategies that are available to global businesses.


Your task

Read the executive summary of the article Strategies That Fit Emerging Markets by Tarun Khanna, Krishna G. Palepu, and Jayant Sinha (available online from Harvard Business Review. Note: you will need to close the message on HBR’s website to read the executive summary.

Should global businesses adopt a standard strategy for all emerging markets?

Describe the advantages and disadvantages of the entry strategies identified in the article. Which entry strategies are appropriate for which emerging markets and why?


Reference

Kvint, V. (2009) The Global Emerging Market. New York: Routledge

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The Global Business Environment: Evolution and Dynamics

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