...resources contribute to the development of the destinations and the country itself. It is therefore no surprise that many countries make tremendous efforts to tap income from the tourism industry (Australian Government, 2004). Among these countries are India and China. In the recent years, there have been major improvements in the tourism industry of the two countries which have restructured their mode of operation in handling tourists by providing high standards of accommodation and levels of service (Bikyamasr, 2012). This essay looks at recent tourism developments and trends that have been happening in India and China and it further looks at the likely future trend of tourism in these two emerging countries. INDIA In India, the development of the tourism industry has been on the rise in the last four years. At the moment, the industry is largest service industry contributing to about 6.3% of GDP and accounting of 8.78% of total jobs (Sinha, 2004). Though the country has not fully developed its tourism industry, further availability of tourism sites and products and adequate human resources could definitely aid this industry to rise to its full potential. According to Seth, Bhat & Sushma (2010), in 2008 the tourism industry in India was at its infant stage. At that time the industry accounted for a volume of about 0.4% of the world population, far much below any other country with similar resources. From studies and comparison with other countries, the government realized that...
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...SPECIAL REPORT ON EMERGING MARKETS www.dreamgains.com White Paper Special Report On Emerging Markets ABSTRACT This paper examines the four emerging economies- Brazil, India, Russia and China (BRIC) - that are expected to play an increasingly important role in the global economy in the coming decades. These four countries have come to symbolize the exciting challenges and opportunities presented by dynamic emerging markets. The first part of the report outlines key features of these economies and their growing contribution to world output and trade. The second part analyses the contribution of India towards the same. By 2050, the BRIC economies will account for 44% of global GDP. The emerging market accounts for an increasing share of global activity. Two centuries of vigorous industrialization has propelled economies of North America, Western Europe and Japan into a dominant position in terms of their share of world output. But the past three decades have seen steady erosion from the peak they attained during the 1970. The emerging economies now account for over half of world output. These dynamic economies are changing the world economic order as they industrialize, improve their infrastructure and rapidly develop their service sectors. By 2050, they will account for almost 78% of global output. This projection uses realistic assumptions of annual growth rates of 5.3% to 2050, well below those posted in recent decades by the economies of developing Asia at over...
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...Question 1 Why do companies such as Procter & Gamble target emerging markets? Do you agree with this strategy? For many years, multinational consumer goods company Procter & Gamble lagged behind its direct competitors Colgate-Palmolive and Unilever in emerging markets. Both Colgate and Unilever gain more than half of their revenue from emerging economies. P&G, on the other hand, only generates 40% of its revenue abroad, despite being the world's largest household product maker. P&G is famous for having a rich portfolio of well-recognized brands in the personal care, beauty, grooming, health and fabric segments. As Morningstar notes, some of its brands are essential for retailers to bring more traffic to their stores and therefore enjoy privileged product positioning. More than 20 of P&G's brands generate $1 billion or more in revenues per year and they are extremely popular. These brands are famous for their high quality. However, despite the strength of its portfolio and its presence in more than 180 countries, P&G's performance in global markets is far from amazing. Global growth has roughly been 3% on a dollar basis for the past few years. Considering that there's an emerging middle-class in emerging economies, P&G could not only find a growth catalyst but also find high-profit situations abroad. Big companies such as Procter & Gamble target emerging markets because they are determined to grow. Their strategy is to capture as much customers...
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...strategist Dr. Vladimir Kvint, an emerging market is “a country whose society in transition from a dictatorial form of government to a free market economy, increasing economic freedom, gradual integration into the world market, an expanding middle class, improving living standards, social stability and deepening cooperation with multi-institutions ". Furthermore, In 2008 Emerging Economy Report, the Center for Knowledge Societies defines Emerging Economies as those "regions of the world that are experiencing rapid informationalization under conditions of limited or partial industrialization." The notion of the author/ in simple terms with regards to emerging markets is that it is a particular economy which stands ahead of developing economies with more attractive economic and political conditions and institutional framework leading to potential business opportunities. According to Brandes (2014), “Emerging markets are no longer the uncharted markets they were in the past—they are advancing economies with growth opportunities and continually improving economic and political conditions”. The trend of emerging markets up surged from late 1990’s when 73% of developing countries outpaced America. The most impressive growth was reported in four biggest emerging economies; namely, Brazil, Russia, India and China which were abbreviated to BRICs in 2001. http://www.economist.com/news/briefing/21582257-most-dramatic-and-disruptive-period-emerging-market-growth-world-has-ever-seen In the...
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...The Rise of Emerging Markets in Mergers and Acquisitions Developing countries are gaining strength and influence T he rise in the number of mergers over the past five years has been dramatic. Unlike previous merger waves, however, companies in emerging markets are playing an increasingly important role. Indeed, while the number of majority acquisitions increased globally by 6 percent, acquisitions of established companies by emerging firms grew at an annual rate of 26 percent. Although their motives differ from traditional M&A activity, it is clear that, in the near term, emerging competitors present a potential threat to companies in developed countries. Mergers and acquisitions have become a staple of newspaper headlines. Although most M&A activity is initiated by companies in the developed world, a recent A.T. Kearney study of global M&A reveals that a paradigm shift is occurring: Beginning in 2002, deals between developing and developed countries grew at an annual rate of 19 percent— far in excess of the industry average and four times faster than deals conducted within either developing or developed countries alone (see figure 1 on page 2). While not large in absolute terms, this rate of growth indicates how rapidly the developing world is catching up in the M&A business. In fact, the study found that companies from developing countries such as China, India, Malaysia, Russia, the United Arab Emirates and South Africa are snapping up established...
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...Session 7 Emerging Markets: India July 11, 2016 IIM-K PGP 19 IB 2016-17 S7: Emerging Markets: India 1 Emerging Economies Location: Asia, Americas, Africa, Europe Features: Rising income/skills; large markets; cheaper factor resources Prospect: Fast developing (e.g., BRICS) July 11, 2016 IIM-K PGP 19 IB 2016-17 S7: Emerging Markets: India 2 Prospective Economies Asia: Indonesia, India, China Europe: Poland, Russia North America: Mexico South America: Brazil Africa July 11, 2016 Kenya, Nigeria, South Africa IIM-K PGP 19 IB 2016-17 S7: Emerging Markets: India 3 India as Global Business Destination: Perceptions* Democracy is vibrant, govt. is highly bureaucratic; corruption is rampant in state & local governments A dynamic press & vigilant NGOs act as checks on politicians & companies Restrictions on green-field investments & acquisitions in some sectors make joint ventures necessity Red tape hinders companies in sectors where the govt. allows foreign investment Some local design capability is available in product markets; IPR problems exist with US in some sectors; regulatory bodies monitor product quality & fraud Suppliers are available; but their quality & dependability varies greatly * Strategies That Fit Emerging Markets, HBR, June 2005, pp.9-10 July 11, 2016 IIM-K PGP 19 IB 2016-17 S7: Emerging Markets: India 4 India as Global Business Destination: Perceptions* Roads...
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...to other parts of western Europe and later to America. The early industrialisers (along with a few late developers, such as Japan) were able to lock in and build on their lead in technology and living standards. The “great divergence” between the West and the rest lasted for two centuries. The mill at Styal, once one of the world’s largest, has become a museum. A few looms, powered by the mill’s water wheel, still produce tea towels for the gift shop, but cotton production has long since moved abroad in search of low wages. Now another historic change is shaking up the global hierarchy. A “great convergence” in living standards is under way as poorer countries speedily adopt the technology, know-how and policies that made the West rich. China and...
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...In 1865, Hong Kong and Shanghai Banking Corporation (HSBC) was founded to meet the demand for local banking facilities in Hong Kong and on the China coast. The increasing and frequent trade was undertaken between Europe, India, and China, which contributes to the extension of the bank. HSBC now is one of the world’s largest banks with extensive international operations. Although the bank rapidly expanded across the globe, HSBC retained a clear focus on China market. In view of these changes of HSBC’s China strategy, it may be instructive to examine how banking environment and police of China changed over the years. Upon China’s accession to the WTO, foreign bank were allowed to enter China’s bank sector. HSBC seized the tremendous opportunity to strengthen its presence in China. This essay will begin by examining the evolution of HSBC’s Strategy in pre-WTO and post-WTO China. Next, It turned to analyse the impetus to these changes of HSBC’ China strategy. In the following part, this essay will introduced the background of HSBC expanding in China’s rural areas and evaluated this strategy from advantages and disadvantages aspects. Having presented the HSBC’s presence and strategy in China, the paper then analyses HSBC’s operating in other emerging markets with the evidence from India and Argentina. Moreover, the data and facts will be provided to evaluate the operation of HSBC during the recent world economic crisis. The further research about the reasons that Asian was identified...
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...experts Emerging Consumer Survey 2015 EMERGING CONSUMER SURVEY 2015_2 Contents 03 Editorial 04 The emerging consumer in 2015 12 A sum of different parts 20 e-Commerce and the emerging consumer 30 Focus on travel 36 Focus on autos 40 Focus on healthcare 46 Brands and the emerging consumer in 2015 62 Brazil: Steady decline continues 64 China: A life online 66 India: New government, strong consumer 68 Indonesia: An under-penetrated market 70 Mexico: Structural potential, cyclical hurdles 72 Russia: Dark clouds gather 74 Saudi Arabia: The petro-dollar 76 South Africa: Reduced optimism 81 About the survey 83 Imprint / Disclaimer For more information, please contact: Richard Kersley, Head of Global Securities Products and Themes, Credit Suisse Investment Banking, richard.kersley@credit-suisse.com Michael O’Sullivan, Chief Investment Officer UK & EMEA, Credit Suisse Private Banking & Wealth Management, michael.o’sullivan@credit-suisse.com COVERPHOTO: ISTOCKPHOTO.COM/XAVIERARNAU, PHOTO: ISTOCKPHOTO.COM/ALIJA 78 Turkey: Subdued but stable EMERGING CONSUMER SURVEY 2015_3 Editorial We are delighted to publish the fifth edition of the Credit Suisse Research Institute’s “Emerging Consumer Survey.” To undertake the project, we have again partnered with global market research firm Nielsen, which has conducted on our behalf nearly 16,000 face-to-face interviews with consumers across nine key emerging economies –...
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...business strategy of targeting emerging markets is a good one (40marks) An emerging market is a country which is in the process of rapid growth and industrialisation and it can consist of the BRIC countries, which are Brazil, Russia, India and China. Targeting an emerging market could be a good strategy. This is because if the current market the business is operating in is in saturation, it could be then justified for them to expand in to these emerging markets as this gives them an escape route away from a saturated market or if the market is in recession to allow them to maximise sales revenue and allow them to survive in a recession. This is because we see that emerging markets usually have a quickly growing middle classes with a strong economic growth meaning that they would be able to escape the worsening current market and move to sell in somewhere with a stronger economy and a larger middle class. Meaning that this middle class is more likely to have money to spend on the new businesses products or services. Also meaning that the growing middle class is resulting in a culture shift, so there could be higher demand for their products or services in the emerging market. As a consequence to moving in to these emerging markets it also means that there brand name and image is growing and becoming more well known in these new markets. We see this with JLRs move to India as the Indian company TATA motors brought JLR, with this market development strategy they then aimed...
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...GLOBE Have You Restructured for Global Success? It takes more than localizing your customer-facing business to win in emerging markets. by Nirmalya Kumar and Phanish Puranam OCTOBER 2011 reprint R1110J The Globe Microsoft CEO Steve Ballmer speaks, in May 2011, as the company opens the headquarters of its AsiaPacific R&D Group in Beijing. Have You Restructured For Global Success? T Photography: Getty Images It takes more than localizing your customer-facing business to win in emerging markets. by Nirmalya Kumar and Phanish Puranam 2 Harvard Business Review October 2011 wo summers ago, Frits van Paasschen, the CEO of Starwood Hotels, was talking to his wife, Laura, about China. With 70 properties in operation there and 80 more being built, the People’s Republic had just become Starwood’s second-largest market, after the United States. Van Paasschen jokingly said, “It’s almost like we should move our headquarters there.” Laura’s response, in a nutshell: Perhaps you should. A year later, van Paasschen did just that—for a month. From June 8 to July 11, 2011, Starwood’s eight-member top management team worked out of Shanghai, doing business 12 hours ahead of, rather than behind, the company’s official White Plains, New York, headquarters. Starwood now plans to shift its base for a month every year to fast-growing markets such as Brazil, Dubai, and India. The end result of these relocations remains unclear: They may prove to be symbolic, they could be learning moments, or...
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...International Marketing Strategy in Automobile Sector in Emerging market International Marketing Strategy in Automobile Sector in Emerging market Research Paper Research Paper Abstract Globalization has not only opened up new avenues for MNEs, but has also benefitted the emerging nations who have adapted to it. It has formed the basis of growth and development for most emerging nations of course other factors too are relevant). This research paper seeks to examine the international marketing strategies of MNEs in the automobile industry, specifically for the emerging nations, because as our subsequent findings will prove, that these markets are currently the most promising and will remain so at least for a few years to come. When we consider the emerging nations, the most promising ones are obviously the BRICs (reasons covered in the following sections). Hence, for readability and convenience purposes, we have limited our research to these nations. Keywords: Marketing strategy, BRIC, TRIAD, MNE, emerging markets, JV Objectives of Study: 1) International Marketing strategies followed by automotive companies in Emerging markets. 2) The study also aims at understanding whether the marketing strategy of these global automotive companies are justified by analysing its impact on the key statistically significant numbers of a company, i.e. the net profit, sales, operating income and the market share. Introduction MNEs continuously strive to grow...
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...Table of Contents Executive Summary 3 Issue Identification 4 Slowing Growth in NAFTA Trade 4 Continuation of NAFTA Strategy versus Expansion into Latin America 4 Taking Advantage of Economic Growth in Asia and Emerging Markets 4 Expanding Overseas 4 Environmental & Root Cause Analysis 5 Slowing Growth in NAFTA Trade 5 Continuation of NAFTA Strategy versus Expansion into Latin America 5 Taking Advantage of Economic Growth in Asia and Emerging Markets 5 Expanding Overseas 6 Alternatives and/or Options 6 Slowing Growth in NAFTA Trade 6 Continuation of NAFTA Strategy versus Expansion into Latin America 6 Taking Advantage of Economic Growth in Asia and Emerging Markets 7 Expanding Overseas 7 Recommendations and Implementation 7 Slowing Growth in NAFTA Trade 7 Continuation of NAFTA Strategy versus Expansion into Latin America 7 Taking Advantage of Economic Growth in Asia and Emerging Markets 8 Expanding Overseas 8 Monitor and Control 8 Executive Summary Since Canadian National Railway Company (CN)’s privatization by the Canadian government in November 1995, CN has not stopped growing its sales, profits, cash flow and, as a result, market value. Privatization and deregulation of the rail industry led to some of CN’s success, but CN had to cut costs and increase revenues. Cutting costs meant reducing workforce and closing or selling unprofitable tracks. It also meant investing in more efficient rail equipment and technology. Increasing revenues required focusing...
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...The BRICs markets are both the fastest growing and largest emerging market economies. The countries of Brazil, Russia, India and China are becoming ever larger forces in the world economy. They account for almost three billion people, or just under half of the total population of the world. In recent times, they have also contributed to the majority of the world GDP growth. For some time their growth rates have been faster than those experienced in the western economies, and they have been able to withstand the recent economic crisis with greater resilience (Geoff, 2010). According to various economists’ projections, it is only a matter of time before China becomes the biggest economy in the world. China is expanding its reach all over the world. For instance, they are making in-road into most African countries which use to be a reserve place for the west, thereby stopping the monopoly that the western economies had in this part of the world. Most African nations with their leaders prefer to do business with China because of their poor ethical standard and the wiliness to do anything just to win the hearts of these leaders who are less concerned about the well-being of their people. In fact, Goldman Sachs believes that by 2050 these BRICs countries will be the most important economies in the world thereby relegating the US to fifth place (EconomyWatch, 2010). By 2020, economists’ project that all of the BRIC countries should be in the top 10 largest economies of the world. Manufacturers...
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...Masmoum Business Development in Emerging Economies 11 April 2014 A) In your opinion – What is the future of Emerging Economies? It seems almost impossible to deny that the emerging economies have a big future. In the last two decades, many developing countries have experienced economic growth and have come over many challenges such as social, political and technological. The economic growth is changing the outlook of those emerging markets. The future of developing countries is very promising and likely to bring large-scale developments and improvements for those emerging economies. Emerging economies are growing at a high rate, which is giving them an economic importance as their share of the world total GDP is still growing (IMF, 2014). However, many factors are challenging the rapid growth of emerging markets. In fact, in some countries such as Turkey and Brazil, it’s proving difficult to achieve a sustainable growth due to political risks. In terms of opportunities, emerging markets are the most promising because they are very rich in human resources (China and India) and natural resources (oil in Middle east and energy in Russia). The financial crisis in 2008-2009 has given the emerging markets more confidence to take the lead on the international level. In my opinion, the opportunities for emerging economies are big because they are experiencing a lot of social and political developments and on the long-term nations like China, India, Russia and Brazil will be...
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