2Strategic Competency Building

In the Introduction, we saw how EMNCs seemed to be following four types of strategies as they seek to build their global businesses and brands: (1) Cost Leaders, (2) Knowledge Leveragers (leveraging primarily into other emerging markets), (3) Niche Customizers (also entering into other emerging markets), and (4) Global Brand Builders via focused innovation and selective acquisitions. The first two of these four strategies leverage “usual” EMNC home-country strengths of lower labor and manufacturing costs, their knowledge of emerging-market consumer needs, and their ability to identify such segments in international markets; we called this approach mechanistic extension. The last two of these strategies, using what ...

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