Strategy in Emerging Markets

THREE

Models of Business Strategy in Emerging Markets

The framework for business strategy in emerging markets that will be presented in this chapter relies on concepts reflecting a company's process of establishment in an emerging market and the strategy that the company caters for in the market in question (Figure 3.1). The interrelated establishment components form a model for market establishment. Here, the components concern the perceptions of relevant barriers to entering the market, the strategy competence sustaining the efforts, and the chosen strategy for entering the market. The current strategy in the market is captured by the strategic states model. In this model, the dimensions of segment penetration and segment adaptation form