Date post: | 30-Jan-2015 |
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Understanding Emerging Markets
The New Global Challengers: MNE’s from Emerging Markets
Tim Wilson (20082901), 11-24-10, SWU International Business Environment, Prof. SeongBong Lee
Currently there are about 28 Emerging Markets in the World
Emerging Market Definition
“Emerging markets are countries such as Brazil, China, India, Mexico, and Turkey that, in contrast to advanced economies, are experiencing rapid economic growth, industrialization, and modernization.” -Cavusgil, Knight, Riesenberger
http://en.wikipedia.org/wiki/Emerging_markets
Be Aware: New MNE Global Challengers …coming for your market share
Emerging Markets Some Characteristics
Young Population (usually) Growing Middle Class Good Education System Labor Cost Advantages Availability of Skilled Labor,
e.g. engineering and leadership talent which is higher than what is reasonably available to competitors in more developed countries
Natural Resources
Rapidly Changing World Economics
http://67.19.64.18/news/2010/11-15fh/2.jpg
Taking A Closer Look at Three Emerging Market MNE’shttp://www.google.com/imgres?imgurl=http://www.bcg.com.cn/en/img/pict/bookreport/The_2009_BCG_100_New_Global_Challengers_Jan_2009.gif&imgrefurl=, http://www.bcg.com/
According to Boston Consulting Groups 2009 Report on the top 100 Global Challengers from Emerging Markets:China 36India 20Brazil 14Mexico 7Russia 6Other 17
MexicoPopulation 2009 esta. 111,211,789 (11th) GDP (PPP)2010 Total$1.541 trillionPer capita $15,323GDP (nominal)2010 estimate Total$1.085 trillionPer capita $10,211
Company Focus: Cemex, maker of cement and ready-mix concrete
http://en.wikipedia.org/wiki/Mexico
Cemex -Worlds Largest Building Materials Supplier started 1906, became international 1992http://farm5.static.flickr.com/4032/4344786778_067d629cd5.jpg, http://www.hankstruckpictures.com/pix/trucks/felipe_garcia/2006/11-02/cimg4308.jpghttp://en.wikipedia.org/wiki/Cemex
Cemex is now in 50 countries and growing.It was able to initially take advantage of home country local labor costs and natural resources. In 2008 home country monetary devaluation and high debt load caused Cemex to revaluate extensive debt financed global expansion.
BrazilPopulation 2009 esta.191,796,000(5th)GDP (PPP)2009 estimate Total$2.013 trillionPer capita $10,513GDP (nominal)2009 estimate Total$1.574 trillionPer capita $8,220
Company Focus: Embraer, builder of small regional jets
http://en.wikipedia.org/wiki/Brazil
Embraer -Worlds Largest Small Regional Aircraft Manufacturer started 1969, became international 1985http://en.wikipedia.org/wiki/Embraer
Embraer, was started by the Brazilian government to create a domestic airline manufacturer. Its rival manufacture and primary competitor is the Canadian regional airline manufacturer Bombardier.Main advantage is skilled labor and engineering at low cost with initial government help.
IndiaPopulation 2010 esta.1,188,943,000 (2nd)GDP (PPP)2009 estimate Total$3.526 trillionPer capita $3,015GDP 2009 esta. Total$1.235 trillionPer capita $1,032
Company Focus: Tata Steel, maker of various steel products
http://en.wikipedia.org/wiki/India
Tata Steel -Worlds 7th Largest Steel Products Manufacture started 1907, became international 2004
http://www.automobilesreview.com/uploads/2008/12/euro-car-body-award-for-the-audi-q5.jpg, http://www.mcarthur-group.com/images/products/steel/steel2.jpg, http://en.wikipedia.org/wiki/Tata_Steel
Tata Steel is the second largest privately owned company in India.Current challenges are energy consumption and pollution reduction pressures.World Steel Dynamics rated it as the best steel company in 2005.Tata Steel is part of a larger India Conglomerate.
Any Questions, Please?
http://i.ebayimg.com/17/!Bg!8oJQBGk~$(KGrHqQOKiIErzIvtI10BLDj,huq(g~~_35.JPG, http://petmarmoset.com/wp-content/uploads/2009/04/questionsandanswers1.jpg,