TABLE OF CONTENT

1. Introduction

2. Emerging market characteristics

3. Emerging market entry strategies

4. Case Study: The Intel

5. Conclusion
1. Introduction

Foreign firms who have exposure in advanced market functions are beginning to
move their operations in the direction of growing markets, for instance Africa, Asia,
Middle East and South America. As these markets grow, they can be rather profitable,
particularly owing to the available customers and the positive prospect of
development soon.

 The declining revenues of a great number of rich and advanced markets have caused
foreign firms to divert their attention towards growing markets. (Arnold, Quelch,
1998). This does make sense as a growing number of people in the developing areas
comprise nearly 80% of the population worldwide and such markets yield good
earnings.

2. Emerging market characteristics

Financial attention towards growing markets has increased a great deal in the recent
past owing to the possibility of additional revenues through these markets.
Respectable firms might swiftly grab sizeable markets and after managing a foothold,
they can garner remarkable expansion in sales in the course of time, though the
market share does not necessarily differ. (Nakata; Sivakumar, 1997). 

At the end of the financial ladder, there are roughly four billion individuals or two-
thirds of the entire population who get less than US$ 2.000 annually. The significant
point to note in the context of these markets is that foreign firms should not actually
get them. Prahalad and Lieberthal (1998) have observed that at the time of operations,
foreign firms only fight to reach the topmost rung in terms of market operations. The
majority of the people are still not catered to and this is an additional difficulty that
confronts foreign firms wishing to venture into developing areas.

Rahman and Bhattacharyya (2003) have proposed three aspects which can be applied
to describe a growing economy as an expanding market, a) the nation must
be regarded as one which has good prospects for development b) the nation's
economy should have lately been exposed to foreign direct investment and the
exposure procedure should be increasing gradually, c) the nation should possess
facilities in institutions which can make functions more convenient.
3. Emerging market entry strategies

Considering the financial value and the distinct attributes of this market, what can
firms do to conquer these hurdles and address difficulties related to entrance? Can
conventionl and regular methods which are adopted in rich markets work for growing
markets too? What steps can foreign firms take to compete with regional firms?

Prahalad and Hart (2002a) have listed four ways in which foreign firms can formulate
their game plan to match the requirements of the growing markets.

1. Formation of purchasing capacity by liberal availability of credit at the micro level

and making accessible- means to the poor people so that they can be encouraged to
buy goods.

2. Inventions by making use of indigenous skills and analysis to address problems

related to facilities and cater to the people below poverty line in an efficient and
commendable manner.

3. Enhancing knowledge availability by means of divided dispensing mechanisms,

making use of collaborations to boost conventional information systems, steady
output of items and primarily, application of advanced IT systems and unique
financial mechanisms to cater to particular requirements of lesser salaried people. The
application of shared facilities, for instance, web booths; wireless equipment and
creating need based technologies can help firms in dramatically cutting down on
communication expenses and also assist them to make IT products available to a more
wider section of individuals including the lesser salaried citizens.

4. Adjust facilities according to the regional circumstances. Foreign firms are needed
to boost regional markets and endorse indigenous skills, creating money for poor
people, integrating advanced technology and a thoughtful consideration of regional
requirements. They must ensure that financial practices are not at odds with the
indigenous ethos and way of living.
4. Case Study: The Intel

It was only after the advent of advanced technology that the electronics sector began
to create competent products. Still, in the last few years Intel decided on using a
nuanced technology mechanism and began focusing on the idea of a product platform.
The foremost difficulty encountered in this business model is being able to pin-point
the real requirements of the ultimate consumer and creating products to fulfill these
requirements.

Moreover, Intel examines and approves of all equipment and software parts of the
final item and communicates with the related people such as industry people
concerned, infrastructure producers, those responsible for configuration, sellers of
used products and service people and tries to ensure that the product can be used in
multiple situations and guarantee a better product to the ultimate consumer.

In such circumstances, the technology concentration evolves from a basic provision of

separate items and goods to a more comprehensive grasping of regular difficulties that
customers encounter and can be addressed by technology.

Though such kind of evolving may not materialize into a vertical business
mechanism, it will enhance the worth of the item. Synchronized mechanisms require
steps to be taken to cut down on expenses and duration spent.

The process of maturation which the market began to experience in the later part of
the 1990s explains the new mechanism adopted by Intel.

An absolutely horizontal structured business pattern might not work any more since
capturing the market demands that the products have enhanced worth.

The main question was a choice of the mechanism to apply since two market rungs
were simultaneously eager to use both mechanisms.

In the year 2002, Intel made use of this new approach to establish a distinct forum
aimed at growing markets. As per this business model, it launched four PDCs in the
heart of the growing markets. The aim and task of these PDCs is to locate indigenous
societal, cultural, territorial and financial criteria and based on this information grasp
the requirements and particular needs of each nation or locality and finally forge a
technology based mechanism to address these requirements.

5. Conclusion

In the light of a great deal of research material, it seems evident that the method used
to enter into a growing market must factor in many aspects and particularities such as
a revamping of the business mechanism and re structuring the procedure according to
which the item is produced.

The outcome of research has indicated that Intel has a detailed, structured and
nuanced financial mechanism to match the requirements of the markets: PDCs which
have a definite area of concentration and a way of deciding upon their mechanism to
deal with growing markets and product platforms that evolve a novel way of business
so that creativity becomes easier.

The enormous possibilities presented by the undiscovered huge growing markets

which lie at the bottom of the marketing hierarchy and also relaxed competition are
some of the causes that motivate the entrance of foreign companies. Intel, though, has
realized that growing markets require items which have more worth than uniform
cheap goods. Most importantly, these markets need growth,; information and
communication technologies, and education facilities need to be developed so that
potential consumers can be incorporated in the growing markets.

Acknowledgement of this has resulted in guidance modules and tasks for teachers and
students as well as awareness about the issue of availability of fundamental
technology mechanisms to backward areas.

References:

1. Neelya A.; Hii J. Innovation and Business Performance. The Judge Institute of
Management Studies, University of Cambridge, 1998.
2. Prahalad, C.K; Lieberthal, K. The end of corporate imperialism. Harvard
Business Review 76(4):68-79, July–August, 1998.
3. Prahalad, C. K. The fortune at the bottom of the pyramid. Pearson Education,
Inc., 2005.