Building World-class Companies in developing Countries Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Building World-class Companies in developing Countries Case Study Solution

Introduction

The large emerging giants refer to companies that have been operating in the local market, but has potential to enter the international market to compete with international brands. India, China, Brazil, South Africa, and North Korea are the largest emerging markets that have been playing an important role in building world-class companies in the international market. The purpose of these emerging giants is to become globally competitive and exploit new opportunities into the international market.

The emerging giants are operating locally as they have better understanding of the market than any company could have. Suppose an international market player who is a manufacturer of home and office appliances enters into China so it is possible that this international player would be able to compete with Haier a local company of China. No, not all because Haier has experience of decades into the market, so new entrant would have less space to play in the market.

The competition is between the local and multinational companies having the aim to take down each other in the showground of market. But, the important thing is that how companies would compete given that each firm has expertise into different markets, where organizational structure does not matter, but the business model, organizational capabilities, best talent, and skills, and good understanding of the market is important as these do affect the company in all matters of organization.

Statements of Problems

The international giants are less effective to the national or local giant that has built enough capabilities to give tough time to international brand in the local market. However, there are many problems that are being faced by the companies in the local markets.

The international companies lack experience in understanding the market thus they could not meet with the customers’ needs and market demand as well.
Could not identify the needs of the customers as Haier did in China, it successfully identified the need of some local cities that require frequent change of clothes due to humid weather. So, Haier introduced small machine that could wash one cloth at one time.
It is hard for a multinational company to gain such knowledge within a year of entry.
Local companies are specialized and they know how to approach customers in the market and they have good knowledge of the distribution channels and delivery system. But, the multinational companies do not have such specialization.
Multinational companies could not easily capitalize their capabilities into the country where local players are already much successful.

Summary of situation/Situation Analysis

Multinational companies lack the experience into local markets, and they do not understand the complications, issues, and problems into the market because, these problems are consistently persistent. But, these problems are not encountered by the local companies because they have capitalized their knowledge, they also have leveraged experience of decades into the local market. They know what is the need of the customers, and what is the demand of market. The company has developed the knowledge being at the local market and has vary insights of the market that are not commonly known by the large multinational companies.

Building World-class Companies in developing Countries Harvard Case Solution & Analysis

Meanwhile,the brand recognition is very important but, if the company has brand recognition in the market that does not always guarantee success in international market or the local market then to guarantee success company should have the market structure, capabilities, organizational support, talent and skills and most importantly the capability to understand the market.Having great experience of the market could be helpful in designing strategies to tackle the issues.

The multinational companies have employed people from the local market but they could not achieve the success rate ofa local firm in the market. The reason behind the fact is that although multinational companies hire locals, but the problem lies in their knowledge and expertise in recruitment and selection in finding the best talent from the industry. Since, a local firm could easily locate the talent within the country, and it knows well about the institutes who are providing good talent to the industry. Whereas, the multinational firms could not locate the talent effectively and is not good enough to select the best talent from the industry.

Multinational companies develop a plan to recruit and select the best talent from the industry, and if they become successful in doing so then another problem arises which is to retain that talent in the company. Whereas, the local companies successfully recruit the best talent, and retain it since they have basic understanding of the market, and culture.They also have deep understanding of the market and culture that enables them to recruit the best talent....................

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