EMERGING ECONOMICS

Case #3:General Electric

Group Member: Xiaoxian Huang (Kee) 300718586

Inwai Wu (Irving) 300710851

Yingyu Chen(Jenny) 300730043

Zitong Gao (Mickee) 300691127

Xiaoxian Huang (Kee) 300718586

Emerging economies

Private and public companies have had to develop the

unique strategies to deal with the broad scope and

rapidity of economic and political change in emerging

economies

Xiaoxian Huang (Kee) 300718586

Developing countries with the emerging markets are

fast becoming the driver of global growth

Emerging economies are expected to grow two to three

times faster than developed nations like the US

Corporate profits tend to grow faster when economic

growth is higher.

Xiaoxian Huang (Kee) 300718586

Inwai Wu (Irving) 300710851

Traditional innovation

First sold to the rich countries, then sold to the emerging

country

Reverse innovation

First sold to the emerging country, then sold to the rich

country

Inwai Wu (Irving) 300710851

Yingyu Chen(Jenny) 300730043

The labors and the resources

Transportation

Technology

Main concerns

Yingyu Chen(Jenny) 300730043

Zitong Gao (Mickee) 300691127

From the case, Volkswagen sells more cars in Ch

ina than in Germany and derives one third of its

worldwide profits from China alone.

Costs increased, profit decreased

Develop new technologies

Zitong Gao (Mickee) 300691127

Yingyu Chen(Jenny) 300730043

GE is afraid of emerging multinationals from

emerging economies because of the

increasing competitions

Consumption level

Culture difference

Yingyu Chen(Jenny) 300730043

If I were advising Jeffrey, firstly I would like to

recommend him form strategic alliances with

suppliers of essential components or raw materials in

order to benefit from them or can benefit each other.

Increasing innovation.

Zitong Gao (Mickee) 300691127

Example:

Apple and Samsung