Academic journal article Journal of Emerging Trends in Economics and Management Sciences

Strategies for Making Competition Irrelevant in the Global Market for Developing Economies

Academic journal article Journal of Emerging Trends in Economics and Management Sciences

Strategies for Making Competition Irrelevant in the Global Market for Developing Economies

Article excerpt

Abstract

Competition in the global market in the 21st century has now become tougher and complicated, especially with activities of the online competitors, apart from the rivalry of Multination Corporations (MNCs) with their megabrands. The reality of the situation is that the Developing Economies are unable to cope with the competition with the MNCs locally and globally. On the other hand, the Emerging Economies of Asia, such as India and China have initially avoided competition with the Advanced Economies by massively investing and developing their domestic markets, and eventually competed favourably in the global market to the extend of now being rated among the largest economies of the world. The focus of this paper is to examine how the Developing Economies can avoid competition or make competition irrelevant and in the long run compete favourably with other industrialized regions. The major findings of this study is that the Developing Economies can eventually cope with the global market competition if they initially create products or services for which they have no direct competitor in form of blue-ocean strategies and thereby make competition irrelevant. With this, the Developing Economies can eventually deliver unique value for their products and compete favourably in the global market, as the Emerging Economies have done. The significance of this study to managers, marketers and policy makers lies in the fact this aspect of global competition by developing economies has not been resolved. The study shows that, like Emerging Economies of Asia, Developing countries can initially avoid stiffcompetition by adopting "blue ocean" strategies with MNCs of Industrialized Economies such as Africa and eventually compete favourably with Industrialized Economies in the Global market.

Keywords: competition, emerging economics, global market, developing countries.

INTRODUCTION

Building strong brands to face global competition requires a keen understanding on dealing with global competition, as competition becomes more intense every year and from all directions - from global competitors eager to grow sales in new markets, online competitors, private -label and store brands and strong mega brands. Global competition is mostly rivalry among Multi-National Corporations (MNCs) selling goods and services in the global market place, that are faced with additional global decisions and challenges from one country to another. The picture in the global market place is that of the dominance of the industrialized countries, which have rich markets for cheap, very expensive and sophisticated products. The Emerging Economies of the Asian world have "broken the jinx" and are now becoming industrialized economies, the Developing Economies, especially the sub-Saharan Africa, have remained perpetually under industrialized and underdeveloped and therefore unable to face global market competition.

The focus of this paper is to examine how Developing Economies can avoid the stiff global competition or make competition irrelevant to industrialize in order as the Emerging Economies of Asia have done.

STATEMENT OF RESEARCH PROBLEMS

The major problem of this research is that, in the midst of the growing tense global competition by MNCs and other large global companies, the economies of the developing countries, especially Africa, are unable to cope with the global competition because of their endemic problems of underdevelopment, such lack of capital, high cost of production and others. Moreover, the developing economies are also unable to cope with the sophisticated theories of competitive advantage and product leadership of global companies, cost structure and globalization, propagated by the Industrialized Countries of Europe and U.S.A. This study attempts to gain new insight with a view of developing adequate propositions to enable the Developing to favourably participate in global market competition.

CONCEPTS AND THEORETICAL FRAMEWORK

Global Marketing

According to keegan W. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.