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International business in emerging market Page | 1 International business in emerging market

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The dimensions which provides the framework for international development of business include philosophy, economics, ethics, management, marketing and technology (Cavusgil, Knight, and Rose, 2014). Alibaba group is one of the multinational e commerce, internet, retail and Chinese technology conglomerate which came into existence in 1999. It takes into account the multi theoretical approach with the view of resource base covering on the areas of ownership advantages, theory of international trade for location advantage and theory of transaction cost incurred for internalisation advantages.

International business in emerging market Page | 1 International business in emerging market

   Added on 2021-04-17

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INTERNATIONAL BUSINESS IN EMERGING MARKET
International business in emerging market Page | 1 International business in emerging market_1
I n t e r n a ti o n a l b u s i n e s s i n e m e r g i n g m a r k e tP a g e | 1Introduction Globalisation has been remarked under long history. The growth in emerging market evolvesthrough the parameter of foreign direct investment, migration, trade as well as capital flows.The opportunities with huge evolution cover the BRICS countries which stands for Brazil,Russia, India, China and South Africa. However, nations now became more cohesive throughgrid of exchange. The development of business in addition with strategic managementendures to evolve universally (Campbell, Edgar and Stonehouse, 2011). It penetrates theexisting market and cultivates new zones for the exposure so that the targeted market area incontext with customers could be increased beyond. The dimensions which provides theframework for international development of business include philosophy, economics, ethics,management, marketing and technology (Cavusgil, Knight, and Rose, 2014).Literature review Since China explored its name in the emerging market by the end of late 1970’s, themultinational enterprises existing in plethora of segments ranges from retail sector toautomotive has achieved accomplishment in various level. Alibaba group is one of themultinational e commerce, internet, retail and Chinese technology conglomerate which cameinto existence in 1999. It operates and owns multiple array of businesses around the globe inindefinite sector. The former provides services through well-defined channels of business tobusiness, consumer to consumer as well as business to consumer through web portals. It hasbeen renowned as one among the top most 10 valuable and enlarged companies globally. Thereports of January 2018, states that Alibaba ranked as the second most Asian company withthe outbreak of US$500 billion. The figures of online profits in addition to proposed profitshave surpassed the chain of all US retailers (Du, Lu, Wu, Li, and Li, 2013).The application of Dunning’s eclectic paradigm is evaluated in detail to investigate thecritical framework of foreign direct investment in context of Alibaba group. Grounded in thedepth of rich data, the argument is based upon the inconsistent interplay in between ofpossession advantage and local institution during the period of information age. It plays animmense role in justifying the trajectory of Alibaba group in china. The paradigm includesthree embedding networks within such as ownership advantage (On), location advantage (Ln)and internalisation advantage (In). It takes into account the multi theoretical approach with
International business in emerging market Page | 1 International business in emerging market_2
I n t e r n a ti o n a l b u s i n e s s i n e m e r g i n g m a r k e tP a g e | 2the view of resource base covering on the areas of ownership advantages, theory ofinternational trade for location advantage and theory of transaction cost incurred forinternalisation advantages. With the pace of growing acceleration in technological updatesand uncertainty of non-erotic factor, this network will lead the pathways towards attainmentof sustainable development in emerging economy (Dunning, 2014).Ownership The advantages of ownership includes assets or amount of resources which Alibaba grouppossess, in context of the competitors do not have. It include both tangible and intangibleresources such as figures of financial capital as well as market knowledge, reputation,goodwill, managerial capabilities which therefore generates rivalry advantages. It outlines theresource position barrier and matrices of resource product so that the newly embeddedstrategic options could be highlighted from resource perspective rather than productperspective. Moreover, the origin of “O” element is also derived from view of resource base. Theseresources are within the dimensions of firm. In order to withdraw the sustainable advantageamong rivalry competition, the firm assets is expected to have an economic value which isdistinct in that industry. In context of Alibaba group offerings, no substitute is available inmarket for the replacement and it is highly difficult on part of rivals to imitate (Eden and Dai,2010). The content of human resource Alibaba possess is dignified which is a foremostessential towards implementation of strategies and enhancement of company’s overallperformance. Indeed, knowledge is endured in people and also it is a major source ofcompetitive advantage. Therefore contributing towards the company’s utmost valuable assetin short and long run. Howsoever, reputation i.e. the amount of goodwill Alibaba groupenjoys in the market place and in the mind-set of the targeted customers can also be keydeterminant factor to remain competitive. Been a Chinese origin, Alibaba group have createdand maintained the worldwide reputation of high quality control (Rugman, 2010). There isthe possibility of other firms in distinguished foreign countries which also possess sameamount of specific assets. Hence, it is of undue importance to expand and grow thedimensions of ownership beyond the boundaries of firm so that it could step into integratedwide network to sustain the competitiveness (Kotabe and Helsen, 2014). Also theconstruction of business partnership is vigorous to the firms because the merger of resources
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