American political commentator and author Thomas Friedman once said, the world is flat. In recent decades, globalization has leveled the playing field when it comes to trade. With the advancement of technology and other factors, businesses and individuals can now collaborate with each other more effectively.
Emerging economies are countries experiencing rapid economic growth and industrialization. They are often characterized by large populations, rising incomes, and increasing influence on the global economy. Examples include Brazil, India, and China.
The rise of emerging economies is shifting economic power away from traditional Western economies towards new centers of growth.
Emerging Multinational Companies (EMNCs) are companies from emerging economies/markets that have expanded their operations globally, thereby becoming significant players in the international business landscape. Examples of such companies include Transsion Holdings (China), MTN Group (South Africa), and Tata Group (India).
As mentioned earlier, globalization is the primary driver of emerging economies and companies’ ability to become serious players in global trade. However, there are core strategies that Emerging Multinational Companies (EMNCs) have implemented and executed in order to achieve global success.
These strategies are:
Strategic Partnerships and Collaborations
This involves forming alliances with local companies, industry leaders, or technology providers to access new markets, technologies, or expertise.
This strategy is very effective when it comes to penetrating new markets and acquiring a significant market share i.e. becoming a competitive player in the market.
Huawei’s partnership with Google to develop Android-based smartphones is a very good example of how this strategy was effectively implemented to achieve global success. This collaboration enabled Huawei to access Google’s ecosystem, improve its software capabilities, and expand globally.
This partnership was so successful that, at one point in 2019, Huawei was the top-selling smartphone in the world, and then-American President Donald Trump threatened to impose sanctions on the software giant to hinder its competitive advantage.
Market-focused Adaptation
As the saying goes, “When in Rome, behave like Romans.” Market-focused adaptation is all about tailoring products or services to meet the specific needs and preferences of local markets.
This strategy is very vital when it comes to increasing market acceptance of any product and improving customer satisfaction.
An excellent example of how this strategy has been implemented to achieve global success is how the cameras of Transsion phones (Tecno, Itel, and Infinix) are optimized for African markets. The company fine-tunes its phone camera settings to complement various African skin tones to address local preferences e.g.:
– Higher contrast and brightness settings to enhance darker skin tones.
– Optimized beauty modes to reduce excessive brightening.
– Localized camera software to improve image quality in low-light conditions.
For instance, in Nigeria, Transsion’s Tecno phones have a “Dark Skin Mode” to enhance facial details. Similarly, in Kenya, Infinix phones have a “Beauty Mode” tailored to local beauty standards.
Flexible and Adaptable Business Models
Bruce Lee, one of the greatest martial artists to ever live once said, “Flexibility is the key to survival.” Having a flexible and adaptable business model is all about adopting agile business strategies to respond to changing market conditions, customer needs, and technological advancements.
This strategy is very important for developing a competitive advantage and expanding into new markets.
A good example of how this strategy has been implemented to achieve global success is the case of Alibaba Group’s evolution from an e-commerce platform to a digital ecosystem that offers a variety of services that include: Online marketplaces (Taobao, Tmall), Digital payments (Alipay), Logistics and delivery services (Cainiao), Cloud computing (Alibaba Cloud)and Entertainment services (Alibaba Pictures).
Alibaba Group’s flexibility allowed it to expand into new markets, respond to changing consumer behavior, and stay ahead of competitors.
