A Comparative Analysis of International Business Strategy in Brazil VS Chile Harvard Case Solution & Analysis

A Comparative Analysis of International Business Strategy in Brazil VS Chile Case Solution

Introduction

This report attempts to analyze the emerging markets of the world by specifically focusing on Brazil and Chile and also the international business strategies that need to be employed in order to do business in the emerging markets of the world. The emerging markets of the world have been growing at a growth rate which is double of the growth rate of the advanced markets of the world and for many businesses which have extended their operations beyond their domestic boundaries this is a potential opportunity.
The rapid expansion and the growth of the business opportunities in the international markets have increased the demand for the specialized services and the products and the raw materials used in the production of the goods. The urban and the industrial growth in the emerging markets have spurred over the recent years and this has created a set of many new opportunities for the firm’s unprecedented investment plans in businesses and infrastructures.
Most of the businesses today look out at the global markets as the core growth opportunities for sourcing, growth, outsourcing, execution and best of-breed strategy implementation have become the core ingredients for all those firms that are seeking for the growth opportunities in the international emerging markets of the world.
The expansion or entry of the businesses in the emerging markets of the world are basically the initiatives of these companies to expand their businesses as part of their broader global strategy in order to build up the market capabilities and strength in all the key regions of the emerging markets of the world and ahead of their competitors. Moreover, this paper attempts to analyze the international business strategies in the emerging markets and perform a comparative analysis of two key emerging markets which are Brazil and Chile.

Emerging Markets Overview& International Business Strategy

Emerging markets could be defined as any country,which possesses some of the characteristics of the developed or the advanced markets of the world and which might be categorized as the developed markets of the world in future(Aguiar, 2004). There are many emerging markets today around the world and the term which is specifically used to denote these emerging markets is the rapidly developing economies around the world and these economies include Malaysia, United Arab Emirates, Brazil and Chile.
These are the main emerging markets of the world which are undergoing rapid growth. However, there are more than these four emerging markets in the world and it is not possible to make an exact list of the emerging markets of the world. These emerging markets of the world constitute as the most evolving economic order and the rapid growth opportunities around the world(Kaminsky, 2004).
The potential of the emerging markets around the world has impacted upon the shift in the international strategies of the multinational corporations which now always emphasize upon the emerging market investment opportunities with their shareholders. One example is Coca Cola, and it has been predicted by them that their $ 2 billion investment made by them in Indonesia, India and China accounts for more than of the 40% of the total population of the world would be generating sales which would be doubling every three years for the indefinite future, whereas the growth rate of Coke in its domestic US market is just 4% to 5%(Ranciere, 2003).
The recent Delphi study of the business and the policies had placed the emerging markets of the world as the most important source of the future growth. This is because of the rapid increase in the foreign direct investment proportion which has increased from 18% in 1992 to a level of 33% in 1996 in just 4 years aggregated. The governments around the world today are also jostling for their attention regarding the emerging markets of the world....................

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