Emerging economies are becoming key targets for companies wanting to expand in international markets. Often BRICS (Brazil, Russia, India, China, and South Africa) have been synonym to emerging markets.
Star Trucks Ltd. is a trucks manufacturing company, with a production plant in Bedford, UK, and Head Office in London, UK. It markets its trucks mainly in the EU (European Union), the Middle Eastern, and other Mediterranean Region markets. Management has realised that these markets are nearly saturated and its new strategy is to go worldwide and get a good foothold in emerging markets.
Assume you are General Manager of a marketing consulting firm, Market Solutions International Ltd. The CEO of Star Trucks Ltd. has approached you to assess opportunities in the emerging markets. The following is the Brief you are given by the CEO:
â€œConsidering Star Trucks Ltd. being a medium sized company we want to expand cautiously and step by step. While operating in all BRICS economies is a long term objective at first we want to identify the most prospective market to enter. To identify this market we need to research one country in each of the continents. i.e.:
Brazil (from South America)
India (from Asia), and
South Africa (from Africa)
We want to know which of these three markets the firm should enter first, therefore we want you to undertake a comparative analysis. In your analysis examine the investment environment, effects of governmentsâ€™ interventionist policies, the market potential, the impact of regional integration initiatives, if any, and related issues with a clear identification of opportunities and threats in each of these markets. Recommend which country should the firm entre first, explain why, and indicate how it should enter this market with justification. Resource wise, we are confident that we will have no problem to undertake the opportunities your report will identify for usâ€.
Based on the above Brief prepare a report to the attention of the CEO of Star Trucks Ltd.