Large and diversified family-owned businesses
represent a remarkably common feature of many high-growth economies. Family
conglomerates exhibited much resilience over the years, their ownership
transcending several generations. Their stronghold in their respective
economies implies much political clout in governmental relations, and recognition
and franchise with customers. Interestingly, many FCs seem to have successfully
transformed themselves over time in order to sustain their competitiveness.
Many are responsible for introducing new technologies and new products
to their respective economies.
Despite variations in organizational and national
cultures surrounding these companies --including government protection,
capital resources, and employee work ethic--FCs from different countries
tend to evolve in much the same way. Market expansion strategies such as
diversification and internationalization are widely adopted, and FCs benefit
from and adapt to their business environment. Given their unique competencies
in their respective economies, Western companies targeting these markets
ought to familiarize themselves with FCs. As competitors, FCs will be formidable
rivals for western firms. As collaborators and business partners, FCs can
take much of the hassle and difficulty out of entering and succeeding in
emerging markets.
Indeed, FCs have much to offer Western companies:
a local business network, government contacts, consumer recognition, and
established channels, among others. In turn, FCs also stand to gain
from the new business opportunities and know-how that Western companies
may bring to the arrangement. By identifying the complementarities that
FCs offer, Western companies should enjoy more frictionless entry into
emerging markets. |
| For
more information, please consult:
http://globaledge.msu.edu/KnowledgeRoom/FeaturedInsights/0005.pdf
Also you
may wish to consult:
Doing Business
in Emerging Markets: Entry and Negotiation Strategies by S. Tamer
Cavusgil, Pervez N. Ghauri and Milind R. Agarwal, Sage Publications, 2002.
|
