3. 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
4. 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
6. 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
10. 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
12. GE is afraid of emerging multinationals from
emerging economies because of the
increasing competitions
Consumption level
Culture difference
Yingyu Chen(Jenny) 300730043
13. 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
Editor's Notes
If they choose not to focus on emerging economies, their costs will increase and the profit will decrease. From the case, Volkswagen sells more cars in China than in Germany and derives one third of its worldwide profits from China alone. And we can realize that Volkswagen gets more profit in China than in its home countries. Even the costs will be higher because of the import tariff to China is 25%, China has a great population, if more entrylevel cars are selling to China, it will sell more volumes to get more profit. If they choose not to focus on emerging economies, they have to develop new technologies to make themselves be stronger and stronger.
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. Also because there will be more and more competitors. Secondly, I would like to recommend him be more innovated. To take an example, we know that the competition between Apple and Samsung; First, the exquisite appearance and intelligent system enable apple enjoys a large number of consumers. The rapidly innovating of Apple attracts increasingly Apple amateurs’ consumption. Meanwhile, Samsung also has the popular Android system and widescreen. The new generation of Samsung S4 obtains the great many customer approval and favorites. Under this condition, the innovation pays a significant part in economies development.