How should companies and investors measure success in emerging markets?

Expert Solution

It is not possible to understand clearly the success rate of the emergent market which is not a problem for the developed market. There are some ways by which big companies and investors can measure the success rate in the emergent market. Some measures are :

The infrastructure which has been set up by the market controllers.
The knowledge which can be gained about the market and its different factors.
The ways by which the customers are getting influenced.

As emergent markets lack proper infrastructure, so big companies need to establish an infrastructure from scratch. It needs a lot of planning and research as not every country responds in the same way. Establishing proper infrastructure can be very beneficial as this initial investment can be an advantage when the market develops.

Another way to measure success is by understanding the amount of knowledge a firm has gained about the market. A company needs to have insight regarding the operational model which can give success.

Lastly, success can be measured byways to get the customers influenced. Emerging markets have the capability and potential of becoming a huge market after development.

Hope this helps :)

If you liked the answer then please give an Up-vote, this will be quite encouraging for me, thank you!

keosha answered 2 years ago

Why are the emerging markets important for global companies? What specific issues should global companies consider...

Why are the emerging markets important for global companies? What specific issues should global companies consider when they want to explore these markets? Share your rationale.

How are emerging markets shaping globalization?

How should each organization measure the success of the programs? How are public health program initiatives...

How should each organization measure the success of the programs? How are public health program initiatives enhanced by private- and public-sector partnerships? Do you think a profit-oriented company working with a community-based, nonprofit organization to deliver a public health program is counter-intuitive? What issues do you think the partners will face as they slowly roll out the Alliance on a nationwide basis?

International equity markets and Portfolio Management: How to categorize emerging markets; Advantages of cross-listing, how to...

International equity markets and Portfolio Management: How to categorize emerging markets; Advantages of cross-listing, how to cross-list, what ADRs are, the types and advantages of ADR. Home bias & reasons for home bias; mutual fund and advantages

What are the emerging markets? Give examples of emerging markets. What are new global challengers? What...

What are the emerging markets? Give examples of emerging markets. What are new global challengers? What advantages do they typically possess? Do new global challengers pose any threat to firms from advanced economies? Explain. What makes emerging markets attractive for international business? What can businesses do to support the development of poor countries such as Africa?

Should Amazon enter additional emerging markets immediately? If so, why and where? If not, why not...

Should Amazon enter additional emerging markets immediately? If so, why and where? If not, why not and where should its focus be? More broadly, how sustainable is Amazon’s simultaneous pursuit of geographic, horizontal, and vertical expansion?

How have investors responded to the recent volatility in the markets?

Define globalization and emerging economies and explain the critical role of emerging markets to globalization and...

Define globalization and emerging economies and explain the critical role of emerging markets to globalization and overall International Trade today.

Gillette Targets Emerging Markets' As it entered the twenty-first century, Gillette faced a difficult choice. Should...

Gillette Targets Emerging Markets' As it entered the twenty-first century, Gillette faced a difficult choice. Should it continue targeting emerging markets or not? Its strategy to move aggressively into markets in the developing world and the former Soviet bloc had been hailed as a success only a few years before. Recent poor earnings, however, had management considering whether this choice had been a wise one. The Boston-based firm was founded in 1895 and is still best known for its original...

Which equity markets are more liquid, developed or emerging markets? Which equity markets are more concentrated,...

Which equity markets are more liquid, developed or emerging markets? Which equity markets are more concentrated, developed or emerging markets? What is cross-listing? Give an example of cross-listing. Explain three reasons for cross-listing. What is ADR? Are ADRs of Toyota company denominated in US dollars or in Japanese Yen? Are ADRs traded on US stock exchange or Japanese exchange? Are dividends paid in US dollars or Yen? Total risk of a security’s return could be decomposed into which two risk?...

Question