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 MNC’s 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, MNC’s 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 MNC’s in China and India demonstrate that it is important to adapt a company’s 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 MNC’s in each market will differ.
Table of Contents
- 1. INTRODUCTION
- 2. ECONOMIC SITUATION
- 2.1. The Global Economic Situation
- 2.2. The Economic Situation in Emerging Markets
- 2.3. The Economic Situation in China and India
- 2.3.1. China
- 2.3.2. India
- 2.4. The Economic Outlook
- 2.4.1. General Global Outlook
- 2.4.2. Outlook for Emerging Markets
- 2.4.3. Outlook for China and India
- 3. MULTINATIONAL CORPORATIONS IN EMERGING MARKETS
- 3.1. Definition of Multinational Corporations
- 3.2. Definition of Emerging Markets
- 3.3. The Current Situation of Multinational Corporations
- 3.3.1. Globally
- 3.3.2. In Emerging Markets
- 3.3.3. In the Emerging Markets China and India
- 3.4. The Role of MNC's from China and India in the World's Economy
- 4. STRATEGY
- 4.1. Definition of Strategy
- 4.2. Market Entry Strategy
- 4.2.1. Types of Entry Modes
- 4.2.2. Application in Emerging Markets
- 4.3. Innovation and Knowledge Strategy
- 4.3.1. Innovation Strategy
- 4.3.2. Innovation Strategy in Emerging Markets
- 4.3.3. Innovation Strategy in China and India
- 4.3.4. Knowledge Strategy
- 4.3.5. Implementation of a Successful Innovation and Knowledge Strategy
- 5. CHALLENGES AND RISKS FOR MNC'S
- 5.1. General Overview
- 5.2. Challenges and Risks in the Emerging Markets China and India
- 5.2.1. Challenges and Risks in China
- 5.2.2. Challenges and Risks in India
- 5.2.3. Challenges and Risks in China and India
- 6. BEST STRATEGIES OF MNC'S IN CHINA AND INDIA
- 6.1. General Overview
- 6.2. The Example of Wal-Mart in China
Objectives and Key Themes
This master's thesis aims to analyze the strategies employed by multinational corporations (MNCs) in the emerging markets of China and India, with a particular focus on innovation and knowledge strategies. It explores the challenges and risks associated with operating in these dynamic markets and identifies key factors contributing to successful market entry and sustained growth.
- Economic conditions and outlooks in China and India
- Strategies for market entry and expansion by MNCs
- The role of innovation and knowledge management in achieving competitive advantage
- Challenges and risks faced by MNCs in China and India
- Best practices and successful case studies of MNCs in these markets
Chapter Summaries
1. INTRODUCTION: This chapter introduces the concept of emerging markets and highlights the significant growth of China and India in the global economic landscape. It emphasizes the substantial opportunities and challenges presented by these markets for multinational corporations (MNCs), setting the stage for a deeper exploration of MNC strategies in these countries. The chapter uses examples like HP's success in the Chinese computer market to illustrate the immense potential of these emerging economies.
2. ECONOMIC SITUATION: This chapter provides a comprehensive overview of the global economic landscape, focusing on the economic situations in emerging markets, particularly China and India. It delves into the specific economic conditions of each country, analyzing key economic indicators and projecting future economic trends. This sets the context for understanding the opportunities and challenges faced by MNCs operating in these markets. The chapter touches upon GDP growth rates and other relevant indicators, laying the foundation for subsequent chapters which delve into the intricacies of MNC strategies within these specific economic contexts.
3. MULTINATIONAL CORPORATIONS IN EMERGING MARKETS: This chapter defines multinational corporations (MNCs) and emerging markets, establishing a clear framework for understanding their interactions. It examines the current state of MNC activity globally, with a specific focus on emerging markets and the unique circumstances of China and India. The analysis of MNCs' role in the world economy, especially those from China and India themselves, adds another layer of complexity to the overall discussion, offering a global perspective on these evolving economic dynamics.
4. STRATEGY: This chapter delves into the concept of strategy, specifically market entry strategies and innovation and knowledge strategies. It discusses various market entry modes and their applicability in emerging markets, emphasizing the importance of adapting strategies to local contexts. The chapter provides an in-depth analysis of innovation and knowledge strategies, crucial for MNC success in these markets. This sets the stage for subsequent chapters, which will explore how these strategies are implemented in China and India and what challenges MNCs face in doing so. It also covers aspects such as local product adaptation, global R&D efforts, and effective talent management as critical success factors for MNCs operating within the emerging markets.
5. CHALLENGES AND RISKS FOR MNC'S: This chapter examines the various challenges and risks faced by MNCs in emerging markets, particularly in China and India. It provides a general overview of common difficulties and then delves deeper into the specific challenges posed by each market. By highlighting the unique risks present in both countries and offering comparative analysis, the chapter prepares the reader to understand the strategic implications discussed in the subsequent chapters.
Keywords
Multinational corporations, emerging markets, China, India, market entry strategy, innovation strategy, knowledge strategy, challenges, risks, competitive advantage, economic outlook, globalization, R&D, talent management.
Frequently Asked Questions: Strategies of Multinational Corporations in Emerging Markets (China and India)
What is the main focus of this document?
This document provides a comprehensive overview of the strategies employed by multinational corporations (MNCs) in the emerging markets of China and India. It emphasizes innovation and knowledge strategies, analyzing the challenges and risks associated with operating in these markets, and identifying factors contributing to successful market entry and sustained growth.
What topics are covered in the Table of Contents?
The document covers the following key areas: Introduction, Economic Situation (global, emerging markets, China & India, and outlooks), Multinational Corporations in Emerging Markets (definitions, current situation, and the role of MNCs from China and India), Strategy (definitions, market entry, innovation & knowledge strategies), Challenges and Risks for MNCs, and Best Strategies of MNCs in China and India (including case studies).
What are the key objectives and themes explored?
The key objectives are to analyze MNC strategies in China and India, focusing on innovation and knowledge; to explore the challenges and risks; and to identify factors contributing to successful market entry and growth. Key themes include economic conditions in China and India, market entry and expansion strategies, the role of innovation and knowledge management, challenges and risks faced by MNCs, and best practices and case studies.
What does each chapter summarize?
Chapter 1 (Introduction): Introduces emerging markets and the growth of China and India, highlighting opportunities and challenges for MNCs. Chapter 2 (Economic Situation): Provides an economic overview of the global landscape, focusing on emerging markets, China, and India, analyzing economic indicators and projecting future trends. Chapter 3 (MNCs in Emerging Markets): Defines MNCs and emerging markets, examining MNC activity globally, specifically in China and India. Chapter 4 (Strategy): Discusses market entry strategies and innovation and knowledge strategies, emphasizing adaptation to local contexts. Chapter 5 (Challenges and Risks): Examines challenges and risks for MNCs in emerging markets, specifically China and India.
What are the key challenges and risks faced by MNCs in China and India?
The document highlights various challenges and risks, including but not limited to navigating unique regulatory environments, managing cultural differences, protecting intellectual property, competition from local firms, and managing supply chains in these complex and dynamic markets. Specific challenges and risks for both China and India are individually analyzed.
What are some examples of successful strategies used by MNCs in China and India?
The document uses examples such as HP's success in the Chinese computer market (mentioned in the introduction) and includes a case study focusing on Wal-Mart's experiences in China in order to illustrate successful strategies. The successful strategies discussed likely involve careful adaptation of products and services to local needs and preferences, building strong relationships with local partners, investment in local talent and R&D, and robust risk management strategies.
What keywords are associated with this document?
The keywords include: Multinational corporations, emerging markets, China, India, market entry strategy, innovation strategy, knowledge strategy, challenges, risks, competitive advantage, economic outlook, globalization, R&D, and talent management.
What type of audience is this document intended for?
The document is intended for an academic audience, possibly researchers, students, and professionals interested in international business, emerging markets, and the strategic challenges faced by MNCs operating in China and India.
- Citar trabajo
- Master of Science Andreas van de Kuil (Autor), 2008, Strategies of multinational corporations in the emerging markets China and India, Múnich, GRIN Verlag, https://www.grin.com/document/117743
