The document discusses strategies for companies operating in emerging economies. It notes that emerging markets are driving global growth faster than developed nations. Traditional innovation involves first selling to rich countries and then emerging countries, while reverse innovation involves first selling in emerging markets and then rich countries. Operating successfully in emerging economies requires addressing concerns about labor, resources, transportation, and technology. The case of Volkswagen highlights the opportunities in China but also the risks of increased costs. Strategic alliances and innovation are recommended for dealing with competition from local emerging market companies.

1. EMERGING ECONOMICS
Case #3:General Electric
Group Member: Xiaoxian Huang (Kee) 300718586
Inwai Wu (Irving) 300710851
Yingyu Chen(Jenny) 300730043
Zitong Gao (Mickee) 300691127

2. Xiaoxian Huang (Kee) 300718586

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

5. Inwai Wu (Irving) 300710851

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

7. Yingyu Chen(Jenny) 300730043

8.  The labors and the resources
 Transportation
 Technology
Main concerns
Yingyu Chen(Jenny) 300730043

9. Zitong Gao (Mickee) 300691127

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

11. Yingyu Chen(Jenny) 300730043

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