Entry Strategy In Emerging Markets Essay Example | Topics and Well Written Essays - 3000 words

Entry Strategy In Emerging Markets - Essay Example However before entering into the markets, the organizations should study the vulnerability of the market conditions and various socio economic factors which are mentioned below. Based on the analysis of the factors the organizations should decide whether it has the necessary potential for setting up a business in the country and also should devise the entry strategy accordingly. The factors which are of prime importance are discussed below Political Factors: The consequence of the political issues is of a high significance to the business. While investigating into the political factors, matters relating to the policymaking of diverse regions are all taken into consideration. These fields include the administrative, provincial, nationwide and worldwide aspects. Another vital part which is included under the political factors is the consequence which businesses have to face due to alteration in the government both in the local and countrywide level. Multinational businesses also need t o properly understand the official policy which a government offers towards other countries (Wiiliams & Green, 1997, p.162). Economic Factors: The economic factors recount the components which influence the economic position of the business. The economic issues thoroughly deal with the economic and the fiscal strategy of the government. It is quite clear that the economic recessions relating inflation also disturb the officialdoms. The power of the national economy is a major factor which organizations do ponder upon. Alteration in taxation rate and bilateral trade agreements amongst the countries are also thoroughly administered (Walters, 2006, p 208)... This report stresses that the analysis of the different market entry strategy shows that all the strategies discussed above offers a range of advantages and also does have some limitation. However in context of the analysis of the market entry strategy in the BRIC nations it has been found that the countries like China ,India , and Brazil are the emerging nations and the foreign organizations looks to invest over there because of the wide range of benefits. Brazil is one of the nations in the BRIC community and its economic stability has made it one of the desired countries for the investors. The study reveals that the strategy of joint venture has been applied by most of the foreign multinational in the country. The reason for the choice is quite obvious as joint venture allows having a close look at the market and reduces the exposure to a wide variety of risk. This paper makes a conclusion that the option of joint venture also provides additional benefit to organizations in countries like India. The help from a local organization provides guide to the foreign companies for penetrating the market and build up a strong presence in the market. The corruptions in the market also can be reduced through the strategic alliance. As a result of the strategic alliance, the local organizations are also benefited considerably and in overall it helps to increase the stability of the economy.