Opportunities presented by emerging economies for global expansion of business

BUSINESS

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Opportunities presented by emerging economies for global expansion of business
Emerging economies are those economies that are not yet developed but provide an
advantageous opportunity for the growth and advancement of the economy. The economies who
have recently developed quickly and the market of such economies is volatile thus making these
economies as emerging rather than developed. In such economies, the expansion opportunities
are very high where businesses can easily earn huge profits by correct expansion and marketing
strategies (Singh and et.al., 2018). The cheaper set up and capital cost specifically in form of
labour and huge market segment that can be targeted are the key benefits of opportunities that
businesses can utilize while expanding on global upfront. Many companies have utilized these
advantages by integrating their expansion with such merging economies. The different
opportunities that are presented by such emerging economies can be categories as follows:
 Development of a consumer class: Due to the fact that the consumers have just emerged
out of poverty and now have a considerable income to spend, they thrive for trying new
products that cater to their different needs. A company, by offering correct product and
using exemplary strategies can capture these markets very easily. For instance, the
example of Gillette can be taken into consideration because of their expansion in Indian
economy that is one of the fastest and rapidly emerging economies (Dominguez and
Mayrhofer, 2017). They launched a special Gillette guard razor for Indian men that was
cheap, provided safety and made shaving easier. They did this after observing Indian men
and identifying that they were more cautious about their safety rather than the close shave
which is preferred by Western men.
 Innovation: Another major opportunity is innovation where the emerging economies,
because of their cheaply available resources and the cheaper labour costs as well, help in
developing innovative products at a lower cost. This can be understood from the example
of Nestle, who for better integration in the Chinese market launched ready to make herbal
soup for them. They observed that Chinese were becoming extremely health conscious
and they did not have adequate time to prepare herbal soups, teas and drinks (Li, Cui and
Lu, 2018). Additionally it was also identified that the herbal pills were not preferred by
them because of their cultural perceptions. Therefore, Nestle successfully launched the
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