Strategies of Multinational corporations in the emerging markets China and India
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Inhaltsangabe:Abstract: In recent years, China and India have become two of the most important markets in terms of sales, low-cost manufacturing and R&D operations. The future progress will increase the competitive advantage for both countries and attract MNCs from all over the world to invest. Nevertheless, success is not guaranteed, even with the large business opportunities that China and India provide. A MNC has to be aware of various challenges that both countries pose, such as government interventions, underdeveloped infrastructures or copyright violations. Hence, MNCs need efficient strategies in order to compete and improve their position in these markets. Particularly the implementation of an efficient innovation and knowledge strategy has become a crucial aspect. Effectiveness in local product adjustments, globalizing R&D, tailoring talent management, mastering the complexity of global value chains, and managing risks are success factors that have to be considered. This, however, is not an easy task. Multiple failures of MNCs in China and India demonstrate that it is important to adapt a companys strategy to the local customer needs and to obtain a competitive advantage in the field of innovation. The purpose of this master thesis is to discuss all these aspects and present crucial factors for the implementation of an efficient strategy for the two markets China and India, with a focus on innovation and knowledge. Obviously, there are limits to the scope of this dissertation. Some aspects as for example the cultural background of both countries, governmental restrictions, the role of outsourcing or the availability of financial resources have either not been considered or are only discussed briefly. Moreover, this dissertation will only provide a general overview as the business environment of MNCs in each market will differ. Introduction: In the last 10 to 20 years the term emerging market has become very important in the international business context because countries such as China or India grew heavily and created new, enormous market segments. Companies from all over the world are seeking to do business in economically developing countries because of their great potential. Gross domestic product (GDP) per capita figures exceeding 10 per cent a year, a business environment of over five billion people (approximately 80 per cent of the global population), a growing domestic customer group of wealthy people, excellently educated workers and opportunities for low-cost production are changing emerging markets as South Korea, Mexico or India on a daily basis. Global companies like Coca-Cola, IKEA, Microsoft or Procter & Gamble have already realized the enormous potential and have expanded their business greatly into these markets. For example, HP benefited from the target segment in the Chinese computer industry that nearly doubled each year since 1996 (from a market value of $ 3.34 billion in 1996 to over $ 35 billion in 2006). Already today, the 10 largest emerging markets have a GDP of more than $ 14 trillion (which is as big as the economy of the United States) and can not be ignored by multinational corporations (MNC`s) due to their huge business opportunities. The most important emerging markets for MNC`s are China and India, for which reason the master thesis will focus primarily on these two countries. They are representative for the success of emerging markets during the last 20 years. In the next 10 to 20 years these two markets will become even larger in their size than mature countries as Germany, Japan or the United Kingdom (UK). China and India are expected to grow from 6 per cent of the worlds output today to 20 per cent by 2025. As a result of that, China will be the second and India the fourth largest economy in the world by the year 2025. In contrast, todays advanced economies will lose significance in the worlds economy and the accompanying shifts in spending could provide substantial opportunities for all global companies. Furthermore, China and India have the highest residential figures which account for approximately 37 per cent of the worlds population. In both countries roughly 700 million people will be living in the mid-income segment by 2010, which is more than the population of the United States (US), Europe and Japan combined. In fact, this segment is growing everyday. This means that a large number of people to sell new products/services to is emerging. Being involved in.

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Strategies of Multinational corporations in the emerging markets China and India ab 58 EURO.

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