Understanding emerging markets


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Understanding emerging markets

  1. 1. Understanding Emerging MarketsThe New Global Challengers: MNE’s from Emerging Markets Tim Wilson (20082901), 11-24-10, SWU International Business Environment, Prof. SeongBong Lee
  2. 2. Emerging Market Definition  “Emerging markets are countries such as Brazil, China, India, Me xico, and Turkey that, in contrast to advanced economies, are experiencing rapid economic growth, industrializatio n, and modernization.” -Cavusgil, Knight, Riesenberger Currently there are about 28 Emerging Markets in the Worldhttp://en.wikipedia.org/wiki/Emerging_markets
  3. 3. 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 ResourcesBe Aware: New MNE Global Challengers…coming for your market share
  4. 4. Rapidly Changing World Economicshttp://
  5. 5. According to Boston Consulting Groups 2009 Report onthe top 100 Global Challengers from Emerging Markets:China 36India 20Brazil 14Mexico 7Russia 6Other 17Taking A Closer Look atThree 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/
  6. 6. Mexico Population 2009 esta. 111,211,789 (11th) GDP (PPP)2010 Total$1.541 trillion Per capita $15,323 GDP (nominal)2010 estim ate Total$1.085 trillion Per capita $10,211 Company Focus: Cemex, maker of cement and ready- mix concretehttp://en.wikipedia.org/wiki/Mexico
  7. 7. Cemex is now in 50 countriesand growing.It was able to initially takeadvantage of home country locallabor costs and naturalresources.In 2008 home country monetarydevaluation and high debt loadcaused Cemex to revaluateextensive debt financed globalexpansion.Cemex -Worlds Largest Building MaterialsSupplier 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
  8. 8. Brazil Population 2009 esta.191,796,000(5th) GDP (PPP)2009 estimate Total$2.013 trillion Per capita $10,513 GDP (nominal)2009 estim ate Total$1.574 trillion Per capita $8,220 Company Focus: Embraer, builder of small regional jetshttp://en.wikipedia.org/wiki/Brazil
  9. 9. 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.Embraer -Worlds Largest Small RegionalAircraft Manufacturer started 1969, becameinternational 1985http://en.wikipedia.org/wiki/Embraer
  10. 10. India Population 2010 esta.1,188,943,000 (2nd) GDP (PPP)2009 estimate Total$3.526 trillion Per capita $3,015 GDP 2009 esta. Total$1.235 trillion Per capita $1,032 Company Focus: Tata Steel, maker of various steel productshttp://en.wikipedia.org/wiki/India
  11. 11. Tata Steel is the second largest privately owned company in India. Current challenges are energy consumption and pollution reduction pressures. World Steel Dynamics rated it as the best steel company in 2005. Tata Steel is part of a larger India Conglomerate. Tata Steel -Worlds 7th Largest Steel Products Manufacture started 1907, became international 2004http://www.automobilesreview.com/uploads/2008/12/euro-car-body-award-for-the-audi-q5.jpg, http://www.mcarthur-group.com/images/products/steel/steel2.jpg, http://en.wikipedia.org/wiki/Tata_Steel
  12. 12. Any Questions, Please?http://i.ebayimg.com/17/!Bg!8oJQBGk~$(KGrHqQOKiIErzIvtI10BLDj,huq(g~~_35.JPG, http://petmarmoset.com/wp-content/uploads/2009/04/questionsandanswers1.jpg,