Global Business Environment Analysis: Gillette in Emerging Markets

This report examines the global business environment, particularly focusing on the opportunities and challenges presented by emerging markets. It highlights the increasing importance of these markets in driving global economic growth and influencing consumer behavior. The report discusses the strategies firms adopt to succeed in these environments, including modifying existing models, leveraging knowledge, and expanding globally. A key example used is Gillette's entry into the Indian market, illustrating how companies must understand local culture and consumer preferences to achieve success. The report emphasizes the need for businesses to consider factors like per capita income, market volatility, and the availability of resources when entering emerging economies. It concludes that businesses must thoroughly research and understand the nuances of these markets to effectively capitalize on their potential.

GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION..................................................................................................................................................3
MAIN BODY .........................................................................................................................................................3
CONCLUSION.......................................................................................................................................................3
REFRENCES..........................................................................................................................................................5

INTRODUCTION
The emerging markets has increased the GDP growth of overall global economy by enhancing the
preferences as well as consumption habits of consumer(Tregear, 2015). Although due to emerging economies
firm faces various hindrances related to preponderances of customer, institutional voids, increase in level of
competition and so on. Thus, various strategies are adopted by firm by modifying the existing model, leverage
the knowledge and expansing from local market to global market (Korinek, 2018). Developing countries such
as Asia market provides various opportunity to the firm in order to operate their business on such emerging
markets.
MAIN BODY
An emerging markets or nations widely invest in production capacity as there is an opportunity of rapid
growth or expansion(Cavusgil and Knight, 2015). Thus, considering the data of 2017 the economic growth of
developed country is less than developing country like the growth of US, UK and Germany was less than 3%
whereas India and China grow up to 7 percent. Some of the attributes of emerging economy is that the per
capital income of the resident of area is low, they are more likely to suspect volatility in markets and the
expansion or growth rapid is high. Hence, these attribute provide ample opportunity for the business to gain
huge profitability, productivity as well as expand its operations wisely (Rottig, 2016). On contrary, such
market lack in making capital investment and do not have any solid record related to foreign direct investment
due to which major companies does not come under listed company and source the fund from debenture or
bonds. In context to Gillette whose parent company is Procter and Gamble found Asia market as a potential
market. Company found it's an opportunity for company to expand their product in untapped market like India.
When the company entered emerging economy they were sure that their product will boom in Indian market
because their razors were cost effective as well as prevent the skin cuts in comparison with T razors which were
sold in India. Moreover, once company launched their product they experienced decline which was shocking
for the brand then company took the assistance of research and development team to enhance their sales.
Additionally, with the help of research department company come to know about the habits of Indian
consumer. Like, in various places there is a shortage of water due to which people have habit of washing the
razor on the bowl full of water rather than cleaning it in running water (Taking Advantage of Emerging Market
Opportunities, 2019). Thus, accordingly, company modified its razor based on the culture or habit of people
and cater the huge emerging economy successfully.
CONCLUSION
From the above report it has been concluded that there are various emerging economy of country which
are untapped and provide huge opportunity. Due to which various firms makes decision to expand on their
business in such markets. So instead of just identify the emerging opportunities company must also make

effort to understand the culture, availability of resources as well as preferences of local customer to flourish
their business.

REFRENCES
Books and Journal
Korinek, A., 2018. Regulating capital flows to emerging markets: An externality view. Journal of International
Economics. 111. pp.61-80.
Rottig, D., 2016. Institutions and emerging markets: effects and implications for multinational corporations.
International Journal of Emerging Markets. 11(1). pp.2-17.
Tregear, R., 2015. Business process standardization. In Handbook on Business Process Management 2 (pp.
421-441). Springer, Berlin, Heidelberg.
Cavusgil, S. T. and Knight, G., 2015. The born global firm: An entrepreneurial and capabilities perspective on
early and rapid internationalization. Journal of International Business Studies. 46(1). pp.3-16.
Online Source
Taking Advantage of Emerging Market Opportunities. 2019. [Online]. Available through:
<https://velocityglobal.com/blog/taking-advantage-of-emerging-market-opportunities/>