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Differences Awareness Model to Fundament Long Term Strategy Extension in a New Emerging Market

Author(s): Elena Mădălina ŞERBAN

Journal: Economia : Seria Management
ISSN 1454-0320

Volume: 14;
Issue: 2;
Start page: 332;
Date: 2011;
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Keywords: business dynamics | developed markets | strategy | emerging markets | institutional environment

The globalization opened the opportunity for multinational companies to increase their businesses in emerging markets and also to local giants from developing countries to step in the western markets. The objective of this paper is to propose a model for analyzing the differences between operating businesses in emerging markets and developed markets. The model purpose is to be applied in the strategic process by mainly the multinationals or local giants intending to develop long term businesses outside their traditional geographies. The studies on emerging markets identified two main axes to be considered when appreciating the attractiveness of the markets: the business dynamics both inside and outside the company and the institutional environment, as facilitator of efficient encounter between sellers and buyers.
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