Market Entry Strategies in Emerging Economies: A Report

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THE DIFFERENT STRATEGIES EMPLOYED BY
BUSINESSES TO ENTER EMERGING MARKETS
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THE DIFFERENT STRATEGIES EMPLOYED BY BUSINESSES TO ENTER
EMERGING MARKETS
Table of Contents
Introduction................................................................................................................................2
Research aim and objective........................................................................................................2
Research question.......................................................................................................................3
The rationale of study.................................................................................................................3
Review of literature....................................................................................................................3
Research methodology...............................................................................................................6
Data analysis and interpretations.............................................................................................10
Research Outcomes..................................................................................................................17
Reflection and recommendation for alternative strategy.........................................................20
Conclusion................................................................................................................................20
References................................................................................................................................21

THE DIFFERENT STRATEGIES EMPLOYED BY BUSINESSES TO ENTER
EMERGING MARKETS
Introduction
The key element of entering a new region successfully is choosing the best market entry
strategy. With rapid globalization, the level of the competition has increased which has led all
business to adopt effective strategies. This will help them to extend their business in the
global market. An organization is required to adopt many strategies that facilitate them to
enter an emerging market. There are certain aspects which a company is required to take into
consideration while entering the emerging market. There are certain barriers which most of
the times create a roadblock for medium-scale industries to enter the emerging market. High
competition is another factor for which a company is required to take an effective approach
so that it can easily enter the emerging market. Before entering into an emerging market, the
company is required to study the market scenario with the help of various analyses such as
PESTLE which will provide the actual picture of the market. For an example, if a UK based
company is trying to enter the market of UAE then there are several factors which need to
taken into account for that company in order to gain leverage in the market. This will help the
company to enter the market easily without any difficulty and also to bloom. For entering the
market there are certain marketing strategies that smoothen their entry and to attract
customers.
Research aim and objective
The main aim of the study is to evaluate various strategies that are employed by a business to
enter the emerging market.
There are certain objectives that have been discussed in the current research paper are as
follows:
 To evaluate the strategies that are employed by various organizations
 To identify the impact of these strategies on business while entering the emerging
market
 To understand how these strategies help them to enter the market
 To identify the strategies that can be used by an organization for entering the market
Research question
Q1: What strategies are adopted by companies while entering the emerging market?

THE DIFFERENT STRATEGIES EMPLOYED BY BUSINESSES TO ENTER
EMERGING MARKETS
Q2: what impact does these strategies while entering the emerging market?
Q3: How the existing strategies adopted by the company can be made more effective that will
help the company to enter the market.
The rationale of the study
Nowadays there has been a steep rise in the level of competition due to the introduction of
innovation in technology. The study here aims to explore the strategies that are adopted by an
organization to enter the market. Brand promotion and effective marketing strategies are the
two strong strategies that help the company to earn recognition in the market. This further
helps them to enter and bloom (Zahra and Wright, 2016). With the introduction of advanced
technology, the strategies adopted by the company have also enhanced and has become
effective. Before entering into an emerging market, the company is required to perform
detailed market research and seek the strength and weakness of the market. This will help to
maintain a lead and remain ahead of other companies. The study here has explored the
strategies that will help an organization to enter the emerging market.
Review of literature
It has been observed that in order to enter the emerging market there are certain strategies that
are adopted by the organizations. There are various strategies that have been adopted by the
organization in order to enter the emerging market. It has been observed that there are many
things which need to be taken into consideration based on which strategies have been
formulated.
Corporate social responsibility strategy adopted by the organization: The industry has
witnessed the increased extent of corporate social responsibility performance as strategic
behaviour mainly in the emerging market. As stated by Surdu, Mellahi and Glaister (2018),
CSR is agreed as an effective marketing strategy that has helped the company and influences
the competition rather than shorter strategies. It has been observed that corporate social
responsibility has been evolved and has gained popularity recently (Overholm, 2015). This
strategy moreover concentrates on the activities of the company that meet the regulations of
the government, to the perception of value creation. In order to enter the emerging market,
there are certain strategies that need to be followed under this head are as follows

THE DIFFERENT STRATEGIES EMPLOYED BY BUSINESSES TO ENTER
EMERGING MARKETS
 It is required to build the strategy around their core competencies of the company
 Identify the problems that matter to the customers (McIntyre and Srinivasan, 2017)
It has been observed that customers matter a lot in this case and the steps that need to be
followed need to be based on this factor.
Brand strategy: it is probably considered the most important factor through which an
organization is able to spread its roots and does its business. Branding helps the company to
earn its name and reputation. According to Hofer (2015), the companies adopt an effective
branding strategy with the help of which it is able to generate brand awareness among the
customers. For this, the companies used all sort of media to promote their services and
products produced and delivered by the company. The study here has given special
importance to this strategy as this is the main strategy that helps the company to bloom and
flourish its business in the emerging market. This can be considered under the marketing
strategy. As opined by Beamish and Lupton (2016), with the introduction of advanced
technologies companies have implemented these strategies so that can reach out to the
customers at mass. For example, if a UK company is willing to the emerging market of UAE
the company needs to brad in such a manner so that the sentiments of the residents of the
country is not hurt. The company is required to take care of the emotions and sentiments of
the people living there so that this does not act as a barrier to the prosperity of the company
(Hockerts, 2015).
The given below diagram outlines the business strategy that is mainly followed by the
company to enter the emerging market. Firstly the company needs to accumulate information
about the emerging market and then analyze the market. After analysing the market the
company is required to select an appropriate strategy that will facilitate the company to enter
into the market. After that, the company need to write a detailed plan on how the company
will be able to make money (Pisano, 2015).
Competitive strategy: This is another strategy that is adopted by the companies while
entering the market. With rising globalization competition among the companies have also
increased to a great extent. For this, the businesses adopt many strategies in which
competitive strategy plays an important role. As stated by (Belz and Binder, 2017),
competitive strategy is regarded as the long-term plan for a particular company in order to
gain a competitive advantage over its rival while entering the market. The three strategies that

THE DIFFERENT STRATEGIES EMPLOYED BY BUSINESSES TO ENTER
EMERGING MARKETS
can be incorporated by the organizations in this strategy are cost leadership, product
differentiation and focus (Rauter,Jonker and Baumgartner, 2017). Customer is the only target
for any business while entering the market. There are several substitutes available in the
market for which the company needs to have a diversification of its products. This will help
the company to create rarity among its products which enable the company to gain
competitive advantage. Product differentiation facilitates companies to market their own
products more effectively. This also helps them to enter and foster its business. As opined by
(Mathooko and Ogutu, 2015), There are many substitutes available in the market which can
create a roadblock for the company to enter the emerging market. In that case, only
diversification in the products can help the company to prosper in the market/ this helps the
company to make its products unique which will gain a competitive advantage to the
industry. When the competition is high it is important to mix innovation with the products
produced by the company. Innovation is used by the companies to their fullest to make their
products distinctive from others. This will help to increase the indulgence tendencies of non-
rarity customers. This will be the biggest victory for the company (Rajwani and Liedong,
2015).
Marketing strategy: There are certain factors that are considered by the businesses while
entering the market such as culture. Often this culture creates a barrier for easy entrance of
the company. As mentioned by (Hohenthal, Johanson and Johanson, 2015), culture plays a
chief role in the Middle East countries. So, while entering into these markets companies are
required to pay more attention to the culture of the company. Even the branding strategy that
has been adopted by the company, in general, is required to be modified. Any elements
cannot be included that hurts the sentiments of the residents of the country (Osiyevskyy and
Dewald, 2015). In countries where culture plays a major role the marketing strategy should
be something that will help to draw the attention of the customers to a great extent. The
company has reviewed its pricing policies that will help the company to penetrate the
emerging market. As stated by (Noe et al., 2017), promotion of the product produced by the
company is also an essential factor which leverages the entry of the company in the market.
Effective marketing strategy strengthens its business to penetrate the market. Besides, these
strategies earn the company a reputation and fame which smoothens the path of the
organization (Ward, 2016).

THE DIFFERENT STRATEGIES EMPLOYED BY BUSINESSES TO ENTER
EMERGING MARKETS
In order to enter the emerging market, it is significantly important for an organization to
comprehend the constitution of the country, laws governing the industry, business and global
relations. It has been observed that laws and trade regulations vary from country to country.
For this, the company is required to conduct serious market analysis so that these things can
be easily handled by the company.
Nowadays, customers are becoming environmentally conscious and try to avoid consuming
those things which create a problem for the environment. In respect to this, the company need
to have some social responsibility towards the customers. According to (Ang, Benischke and
Doh, 2015), mixing these with innovation will make their products not only unique but also
popular among the customers. This section has explored all the strategies that are adopted by
the business while entering the emerging market. These strategies are effective for any
organization to enter the market (Laszlo and Cescau, 2017).
Research methodology
It has been observed that the author here has conducted both primary and secondary research
where the data have been gathered. The author has conducted a survey through which the
responses of the customers have been recorded. This has helped the researcher to make the
research more effective.
Research philosophy: The research philosophy mainly consists of various sources such as
nature and improvement of knowledge. The accumulation of further secondary and primary
data is required to rationale the research questions that have been discussed in this research
paper. There are four main research theories in context to business studies such as realism,
positivism, interpretivism and realism. This research work, the author has used interpretivism
research philosophy as this theory is a socially developed theory that enables to comprehend
the beliefs and the open innovation in the emerging market. The strength of selecting this
theory is that it offers small samples that are mainly discussed in depth with various
qualitative analysis and investigation.
Research approaches: the research question that has been formulated in the research paper
needs much more comprehensive learning. Based on this an efficient research approach is
executed by data collection and observation which will help in meeting the research
objectives and the question of the research. There are two types of research approaches

THE DIFFERENT STRATEGIES EMPLOYED BY BUSINESSES TO ENTER
EMERGING MARKETS
deductive and inductive. The study here has selected a deductive research approach. The
reason behind choosing this approach is that this approach is concerned more with
developing a hypothesis based on the theory that already exists based on that a research
strategy will be designed to test the hypothesis. The research approach that will be followed
in this research paper is that the data will be collected from both primary and secondary
sources. For primary sources, the author will be selecting the managers of the multinational
companies who are trying to enter the emerging company. For this, the author will conduct an
interview where the managers will be interviewed regarding the process that has been or will
be adopted by them in future while entering the market. The author will also conduct a survey
collecting the responses of the customers. With the help of these responses, the author will be
able to get an idea to what extent the companies are successful in entering the emerging
market with the help of effective strategies that are adopted by the companies. The questions
of the research that has been mentioned in this study need a more comprehensive study, and
therefore based on that suitable research approach will be carried out. This will help to meet
the objectives of the study.
Evaluation of primary and secondary data: The author has used both primary and
secondary sources in order to conduct the research. For secondary data collection, the author
has used relevant and recent journals that will help to understand the research topic in a more
detailed manner. For primary sources, the author has used both survey and questionnaire.
This will help the study to become more effective and reliable.
Sampling method: The sampling method that has been chosen for the research is random
sampling. Here the respondents are not segregated on any basis of any caste, profession, age
and sexuality. With the help of this sampling method, 75 respondents are chosen where the
perspective of them will be recorded. Based on these responses a statistical method will be
employed so that an outcome of the research can be quantified
Ethical issues: There are certain things that had to be considered by the author while
conducting this research. Since the managers of the company were interviewed so the author
is required to maintain the code of ethics. The author needs to adhere to the data protection
Act of 1988. The data that has been accumulated from secondary sources need to have
relevance to the research topic. The author is required to shed away al sort of biasness so that
the research is conducted in an honest manner. The data that has been collected from the

THE DIFFERENT STRATEGIES EMPLOYED BY BUSINESSES TO ENTER
EMERGING MARKETS
executives cannot be used for any other financial purposes. The confidentiality of the data
needs to be maintained so that the results of the research are not used for any other financial
purposes. It has also been observed that most of the respondents were not willing to
participate in the research.
Timeline:
Main
activities/
stages
Week
1
Week
2
Wee
k 3
Week
4
Wee
k 5
Week
6
Week
7
Week
8
Week
9
Week
10
Week
11
Week
12
Week
13
Week
14
Select the
subject
Data
Collection
(Secondar
y Sources)
Layout
Formatio
n
Formatio
n of the
Research
Plan
Literature
review
Selection
of

THE DIFFERENT STRATEGIES EMPLOYED BY BUSINESSES TO ENTER
EMERGING MARKETS
Research
Technique
Data
Collection
(Primary
data
sources)
Analysis
and
Interpreta
tion of the
data
Findings
from the
Data
Conclusio
n of the
Research
study
Creation
of Rough
Draft
Final
Submissio
n of the
research

THE DIFFERENT STRATEGIES EMPLOYED BY BUSINESSES TO ENTER
EMERGING MARKETS
Work
Data analysis and interpretations
1. To which gender do you belong?
Options No. of respondents Total number of
respondents
Percentage of
respondents
Male 48 75 64%
Female 27 75 36%
Table 1: Response to question 1
64%
36%
Percentage of respondents
Figure 1: Chart for the response
Analyse of the response:
From the above result, it has been observed that 64% per cent of the respondents are male and
only 36% of the respondents are female who has voluntarily participated in the research.
2. To which age group do you belong?
Options No. of respondents Total number of Percentage of

THE DIFFERENT STRATEGIES EMPLOYED BY BUSINESSES TO ENTER
EMERGING MARKETS
respondents respondents
15-25 6 75 8%
25-40 39 75 52%
40-60 18 75 24%
Above 60 12 75 16%
Table 2: Response to question 2
Less than 6 months 6 months to 2 years 2 years to 5 years 5 years to 10 years
16%
24%
21%
19%
Percentage of respondents
Figure 2: Chart for the response
Analyse of the response:
It has been observed that more than 50 per cent of the employees belongs to the age group of
25-40. It has been observed in this research is that most of the respondents belong to this age
group who have voluntarily participated in the research. This is the group which will better be
able to say the changes and the strategies that are working on the customers.
3. How long have you been a part of any entity?
Options No. of respondents Total number of
respondents
Percentage of
respondents
Less than six months 12 75 16%
Six months to 2 years 18 75 24%
Two years to 5 years 16 75 21.3%
Five years to 10 14 75 18.7%