Strategies for Entering Emerging Markets: A Business Report

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The Different Strategies Employed by
Business to Enter Emerging Market
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Chapter 1: Introduction
1.1 Introduction
Globalization is become one of the common phenomenon in today’s world. Globalization is
one of the famous concepts and with the help of globalization organizations will be able to
take participation in the cross border merger and acquisition. With the help of globalization
trade across international border become quite easy, it helps employees to participate in
international business, thus migration between countries become a necessary phenomenon
(Noe et al., 2017). However, along with globalization competition among various
organization increases and this enhances foreign direct investment. In case of emerging
market globalization is a broad concept, as it helps to business organizations to expand their
business throughout the world.
1.2 Background of the Research Topic
As opined by Wesseling et al. (2015), business is emerging economies is one of the toughest
task in today’s world. It is important for organizations to become global so that they can
expand their business operations for generating profit. The GDP growth rate of emerging
economies is quite low whereas GDP growth rate of developed economies are quite high.
With the help of globalization, organization will be able to expand their business in the
international market. Moreover, globalization enables organization from developed
economies to establish their business in the emerging economies (Chen et al., 2017). Along
with multinational companies foreign direct investment gets the opportunity to enter into the
emerging market.
1.3 Research Aim
The main aim of this research is to understand different strategies that have been employed
by business to enter in the emerging markets.
1.4 Research Objective
There are various objectives of this research, some of the basic objectives of this research
includes,
 To identify different strategies that can be used by business for entering into emerging
market
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 To understand the impact of globalization on the emerging market
1.5 Research Question
The research questions are,
1. How different strategies help a business organization to enter into the new emerging
market?
2. How globalizations impact the entire business of emerging market?
1.6 Research Hypothesis
Null Hypothesis (H0): Different strategies are not required by business to enter in the
emerging market
Alternative Hypothesis (H1): Different strategies are required by business to enter in the
emerging market
1.7 Summary
This section tries to find out the main aim and objective of the research so that it will become
easy to further develop the research. Moreover, the section includes research hypothesis that
will be further discussed for understanding the research more genuinely. However, the next
section includes the literature review that will be done with the help of various previously
published articles, journals and others.
Chapter 2: Literature Research
2.1 Introduction
This section of the researcher includes explanation of various previously published
literatures, journals, articles and others. This literature review section enable researcher to
complete the research more appropriately.
2.2 The Rationale for Market Selection
Market selection is one of the toughest decisions that need to be taken by the organization in
case of international business. As opined by Marquis and Raynard (2015), the process of
market selection includes identification and screening of potential country and market, which
is the appropriate place for the business expansion. However, the market selection process
includes various stages such as preliminary screening stage, identification or in depth
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screening stage and final selection stage. Every stage consist with different selection criteria
and based on those criteria market selection has been done. However, the main criteria for
market selection includes growth of the market, market size, availability of resources, cost of
production, level of economic development, demographic of the region and others (Grant,
2016). Despite a range of different selection criteria organization will be able to select the
best market for the expansion of their business.
2.3 Choice of Entry Mode Strategy
As opined by Li et al. (2018), entry mode strategy is another important concept that is
included in the foreign market entry process. With this entry mode strategy organization will
be able to enter in the new market. Along with the organization, various products of an
organization, advanced and improved technologies, human skills, resources and other
important factor gets the opportunity to enter into the new market. The entry mode strategy
can be referring as the governance structure of an organization. It is quite necessary for the
organization to select appropriate entry mode strategy that includes several trade-off
strategies. Moreover, each entry mode has their advantage and disadvantage associated with
it (Chetty et al., 2015). Firms need to select entry mode strategy that helps them to control
their operation in the foreign country. Therefore, organization can expand their business in
the international market by implementing export facilities, joint venture, merger and
acquisition and various others.
Figure 1: Entry Mode Strategy
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(Source: Chetty et al., 2015)
2.4 Globalization Impact on Emerging Economies
There is a significant impact of globalization on the emerging economies. Along with the
globalization trade openness takes place and this trade openness encourage firms to expand
their business in the international market. In case of emerging economies globalization plays
an important role as with the globalization various multinational companies gets the
opportunities to expand their business in the entire global economy (De Villa et al., 2015).
However, globalization is good for both the economy, this globalization helps companies to
expand their business and this helps them to enhance their profitability by expanding their
market share. On the other hand, emerging economies also benefited from the globalization
as multinational companies gets the opportunities to expand their business in emerging
economies. This increases more job opportunities and employment rate increases because of
this in emerging economy (Ghemawat, 2017). Along with multinational companies foreign
direct investment enters in the emerging market and this helps emerging economies to grow
further.
2.5 Summary
This section tries to find out various literature related to globalization. Moreover, various
entry strategy of business has been analyzed in this section with the help of various
previously published articles, journals, research papers and others.
Chapter 3: Methodology
3.1 Introduction
This research methodology section enable researcher to understand the research more
genuinely. More precisely, research methodology section includes research approach,
research strategy, technique of the research, data collection method and others. Therefore,
research methodology is an important part of the entire research.
3.2 Research Approach
Research approach is a process that helps to define the entire research process more
appropriately. According to Mackey and Gass (2015), various assumptions have been made
that helps to understand the methods of data analysis more genuinely. Research approach can
be of three types including deductive research approach, inductive research approach and
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abductive research approach. Deductive approach has been used by the researcher for
achieving effective result that can be obtained from various existing theories and models.
Inductive approach can be used by the researcher whenever there exist inadequate theories
and models (Fletcher, 2017). Therefore, both the approach is helpful for the expansion of the
research. However, particularly for this research, researcher implements deductive approach
as many theories and models are available on globalization.
3.3 Research Philosophy
Research philosophy is another important part of the entire research methodology. With the
help of research philosophy researcher will be able to develop various scopes so that they will
be able to gain knowledge about the reality based assumptions. Research philosophy can be
of three types such as positivism research philosophy, interpretivism research philosophy and
realism research philosophy (Sekaran and Bougie, 2016). In this research researcher used
positivism research philosophy for better understanding the result. With the help of
positivism research philosophy researcher will be able to understand various scientific
approaches that will help researcher to gain accurate knowledge of the topic.
3.4 Research Strategy
Research strategy has a significant impact on the entire research as it helps researcher to
generate relevant data that will be beneficial for the entire research (Mackey and Gass, 2015).
Research strategy can be of various types including, survey, interview, case study and various
others. However, for this particular research, researcher used both interview and survey
method as strategy.
3.4 Data Collection Method
Data plays an important role in the entire research, thus it is necessary for the researcher to
understand various data collection method so that researcher can use appropriate data in this
research. According to Fletcher (2017), data can be collected with the help of two method
including primary method of data collection and secondary method of data collection. In case
of primary method data can be collected with the help of survey and interview and data
obtained from primary method is more genuine than secondary data. However, in case of
secondary data can be collected from various previously published literatures and journals.
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3.5 Summary
This section enable researcher to select the appropriate methodology so that the research can
be completed successfully. Moreover, it is necessary for the researcher to select the
appropriate methodology for the betterment of the research.
Chapter 4: Time of the Research Activity
Activity Weeks
1 2 3 4 5 6 7 8 9 10 11 12 13
Literature
Survey
Literature
Search
Setting
Methodology
Literature
Review
Data
collection
and
management
Send out and
confirm
interviews
Conduct
Interviews
Data
Checking
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Data
Analysis of
Collected
Facts
Rechecking
Results from
Analysis
Completion
of Study
Table 1: Time Horizon
(Source: Created by Learner)
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Reference
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with information technologies: insights for firm performance in an emerging
economy. Journal of Information Technology, 32(1), pp.10-25.
Chetty, S., Ojala, A. and Leppäaho, T., 2015. Effectuation and foreign market entry of
entrepreneurial firms. European Journal of Marketing, 49(9/10), pp.1436-1459.
De Villa, M.A., Rajwani, T. and Lawton, T., 2015. Market entry modes in a multipolar
world: Untangling the moderating effect of the political environment. International Business
Review, 24(3), pp.419-429.
Fletcher, A.J., 2017. Applying critical realism in qualitative research: methodology meets
method. International Journal of Social Research Methodology, 20(2), pp.181-194.
Ghemawat, P., 2017. Globalization in the age of Trump. Harvard Business Review, 95(4),
pp.112-123.
Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley &
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Li, M.H., Cui, L. and Lu, J., 2018. Varieties in state capitalism: Outward FDI strategies of
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Multinationals (pp. 175-210). Palgrave Macmillan, Cham.
Mackey, A. and Gass, S.M., 2015. Second language research: Methodology and design.
Routledge.
Marquis, C. and Raynard, M., 2015. Institutional strategies in emerging markets. The
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Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2017. Human resource
management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education.
Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach.
John Wiley & Sons.
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Wesseling, J.H., Niesten, E.M.M.I., Faber, J. and Hekkert, M.P., 2015. Business strategies of
incumbents in the market for electric vehicles: Opportunities and incentives for sustainable
innovation. Business Strategy and the Environment, 24(6), pp.518-531.
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