Tuesday, June 18, 2019

Intrnational Business strategy Essay Example | Topics and Well Written Essays - 3000 words

Intrnational Business strategy - Essay ExampleBy May 2000 they had spread out into several developed countries through attainment. In May 2000 they planned to aggressively expand into emerging economies in South East Asia, Africa and Middle East. Their initial counseling was India, China, and Brazil. However, they ever so wanted to have 100% stakes or at least(prenominal) the controlling stakes in any nation. Some of their earlier acquisition strategy was not profitable because their approach was to have a global strategy. They always aimed at total control but this may not always be desirable in all emerging markets.In emerging markets, the established MNCs would generally make an early entry especially in the superior industrial segments (Ghemawat & Hout, 2008). India may be an emerging economy but there are already 28 competitors and the eight largest companies take care of two-thirds of the total have of 100 million tons. CEMEX stands a better chance in China where the tec hnology is obsolete and the size of the market is large. In China they can line up and innovate in a big way.However, entering the emerging economy does not provide cost advantage any more. It is essential to have higher(prenominal) value-offerings and better customer services. CEMEX has been focusing on markets with high population and strong growth potential. Besides, they want to lead the market or have at least 25% control of it. This may not always be the right strategy as Cummins has entered India and China with a topical anesthetic partner with equal union (Ghemawat & Hout, 2008). Cummins is not interested in full management control and their focus is on good partner sharing the same values. This enables them to take advantage of the local knowledge and standing of the local partners. This helps the MNC to create value beyond profits. Local partners are beneficial as they help to overcome the barriers to language and local customs.CEMEXs past acquisitions brought them as c lose as 100%

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