An emerging market deals with an advanced economy that contributes to a level of liquidity in local debt as well as in market exchange. Emerging markets represent nearly 60% of global growth and more than 50% of global GDP. Studies about emerging marketing strategies have a positive contribution to my knowledge that aids in understanding business in developed countries with competition faced in countries Australia, UK.
It can be illustrated as in financial year between 2009 to 2030, South Africa aids in adding 850 million people to middle class in process of taking population from 12% to 73%. Thus from this illustration, I can infer that an increase in affluence that results in increasing consumption that starts with manufacturing and exporting domestic consumption goods that leads to economic growth.
- “Linkage-Leverage-Marketing-Strategy or Mathews L-L-L model”
This framework is a variant and resource-based framework developed by Mathews in order to examine linking, leveraging, and learning capabilities that influence forge in an entry in context of emerging markets. Internationalizing firm’s aids in proliferating complete globalization that aids in taking place in top advanced firms. According to a strategic framework, I can understand that success of internalization by MNCs of emerging markets has resulted from developing linkage, leverage along learning capabilities in order to accelerate internalization. As cited by Bakirtas and Akpolat (2018), it can be also inferred that above-said markets have evolved and accommodated in new circumstances of global economic growth.
Managerial implication / Recommendation
It leads to organizational transformational operation that leads to acquisition as an accelerated strategy for internalization of catch-up along with cultural management of emerging market firms on global economic growth as compared to MNCs of developed countries. Key to L-L-L is to provide a strategic framework that aids in focusing on accelerated internalization to enhance dynamic capabilities.
Bakirtas, T. and Akpolat, A.G., 2018. The relationship between energy consumption, urbanization, and economic growth in new emerging-market countries. Energy, 147, pp.110-121.
Tulung, J.E. and Ramdani, D., 2018. Independence, size and performance of the board: An emerging market research. Corporate Ownership & Control, 15(2).