How Entrepreneurial Firms from Developing Markets Are Using Unique Essay - 1

How Entrepreneurial Firms from Developing Markets Are Using Unique Business Models and Strategies As They Transition Into Emerging Multinationals - Essay Example The paper tells that the developed world markets have experienced an influx of multinational companies or rather corporations (MNCs) with economies for countries such as Brazil, Indonesia, Mexico among others being among the key locations for growth in the near future. In the attempt to find a niche in these global markets, most of the MNC’s have concentrated their focus on the established and wealthy elite who rank top on the economic pyramid. This has given rise to an â€Å"imperialistic form of a mindset† where the existing products are sold to the established markets in the global markets. By the maintaining the focus on the affluent consumers and some partner-organizations who participated actively in the formal economy, it implied that much of general consumer capabilities were being taken for granted. Low-income markets also referred to as the base of the economic triangle offers both tremendous opportunities to tap despite the unique challenges. In the recent ye ars, entrepreneurial firms from developing markets seem to have noted a loophole in the global market that when capitalized on can aid in the tapping of the untapped sectors of the market. Tapping on the opportunities and challenges at the base of the economic pyramid. The opportunities linked with the market at the base of the economic pyramid are gradually becoming significant to both business managers and scholars. There is evidently more than meet the sight when considering the consumers having annual purchasing power parity of 1500 dollars or even less. In fact, any business trying to find its footage in a new environment is bound to face quite a number of challenges. As a business strategy for new global ventures, entrepreneurs have been turning on to partner organizations for resources and expertise they are lacking. Just as is the requirement by most governments, it becomes indispensable that the new entrants in the global market have a corporate partner in the host country who will ensure market accessibility in the new economies. Moreover, the entrepreneurial firms that are entering the base of the pyramid strata of the market economy have had to expand dramatically the field of potential alliance partners.