Case analysis Study Example | Topics and Well Written Essays - 1000 words - 3

Analysis - Case Study Example Thus emerging markets lack or have got underdeveloped soft infrastructure which firms in developed countries take for granted. These two challenges are important because multinational firms need to have prior and basic knowledge about the emerging markets they intend to venture in. Thus lack of this vital information will lead to them sticking to the strategies which they have always deployed, which emphasize on standardized approaches to new markets while sometimes experimenting with a few local twists, thus making many multinational corporations struggle to develop successful strategies in emerging markets. It is also important to have soft infrastructure for informing the multinationals reliably about customer preferences so that they can design products to particular needs and thus increase people’s willingness to pay. Soft infrastructure is also crucial in the execution of business models that the multinational firms have. The situation in emerging markets is not all doom and gloom and there seems to be some light at the end of the tunnel. There are several strengths and opportunities that multinational firms can capitalize on, in emerging markets. Multinational corporations should also be cautious of the weaknesses and threats that are associated with these markets. The following is a discussion of the above four major points that multinational corporation thinking of doing business in the emerging regions should critically analyse. Openness-Multinational corporations can leverage a lot if they exploit economies that are open and those that especially welcome direct foreign investments, even though companies can get into countries that do not allow foreign direct investment by entering into joint ventures and partnerships and licensing with local players. For instance executives do believe that China is an open economy because the government welcomes foreign investment but that India is a relatively