Different types of Data and its Importance
Data can be described as the backbone of any six sigma project. This is because the whole idea of six sigma and operations is to use statistics to manage operations in the factory workshop. Hence, for a six sigma team to understand the types of data and when and how to use them is of […]
Developing the Predictive Equation
Once the Scatter plot has been used to find out the correlation between the inputs being measured as well as the desired outputs, it is now time to come up with an equation which shows the precise relationship. This is called Regression. Regression is a technique which summarizes the relationships observed in the Scatter plot […]
How Firms and Corporates Grow in any Economy
The rules of economics and business are such that in any economy, old or new, recession or boom, the basic rules governing growth are the same. Indeed, ever since the modern day capitalist model of business emerged, growth at any cost and in any economy has been the driving force behind all the decisions that […]
Perspective on International Trade – Meaning and Important Concepts
International trades between countries and across continents have existed for centuries including previous civilizations. Traditionally international trade consisted of traded goods like textile, food items, spices, precious metals, precious stones, and objects of art and various items across the borders. Everybody has heard of the silk route as well as amber road and other famous […]
Masters of the Universe: A Case Study of the Global Investment Banking Sector
Introduction Most of us would have heard of the globally famous Investment Banks such as Goldman Sachs, JP Morgan, and Chase Manhattan as well as Deutsche Bank. Indeed, for aspiring and working professionals alike working in these investment banks is a dream come true not only to the handsome (some would call it obscene) pay […]
As more and more international retailers make a beeline for emerging markets like India, China, Nigeria, Mexico, and other markets, it is important for these retailers to embrace the chaos and duality that is inherent to these markets.
For instance, in India, more than 95% of the retail market is dominated by Kirana stores or what are called as “mom and pop” stores in the United States. Similarly, in Nigeria and Mexico, the retail space is characterized by the coexistence of small retailers alongside big multinationals like Wal-Mart.
The phrase “Oxcart to Wal-Mart” sums up the situation in many emerging markets where the prevalence of earlier century ways of doing business along with the 21st century business models is a way of life. In this situation, it would be better for international retailers like Wal-Mart to segment and conquer wherein they would have to pick the segments that they would like to target and then market to those segments accordingly. The data for segmentation can come from the census figures and other statistics provided by market research firms.
As has been discussed briefly in previous articles, the key aspect of doing business in emerging markets is the management of the supply chain and the logistical and infrastructural issues that need to be tackled.
Many emerging markets do not have world-class ports, airports, and roads yet and hence, international retailers must devise appropriate strategies to address these challenges. This means that they would have to forego the logistical mechanisms that work in their native countries and instead, adapt to the local situation.
Coca-Cola in India prefers direct delivery in many countries but in Kenya, it uses a combination of last mile connectors who can navigate areas where there are no proper roads. Similarly, Unilever is another international business that uses the direct delivery method but in Indonesia, because of the presence of so many archipelagos, it often relies on third party transport companies to deliver its products. The implication of this is clear: adapt and devise local strategies wherever possible.
The source of competitive advantage in many emerging markets lies in the frontline staff and the execution of a point of sale strategy. Rather than price, quality, or brand image, the convenience of home delivery and a staff who knows people personally often make the difference for the small retailers.
International retailers can gain competitive advantage by use of technology that is superior to those used by the local retailers. By speeding up the point of sale process and by having adequate car parking and transport mechanism, international retailers can hope to tackle the local retailers on their home turf.
Since technology needs money to establish, the international retailers with their deep pockets can ensure that by use of software and hardware that is cutting edge, they gain competitive advantage.
Finally, the challenge of local familiarity can be met by hiring staff that are adept at western selling practices but at the same time are conversant and comfortable with the local mores.
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Cross Border Mergers and Acquisitions and Some Recent Trends in this Field
February 12, 2025
