The_Challenges_of_Globalization_for_Emerging_Marke

TheChallengesofGlobalizationforEmergingMarketFirmsRobertGrosseABSTRACT.LatinAmericanfirmsarethreatenedathomebycompeti-tioncomingfromindustrial-countrymultinationalsandchallengedbytheopportunitiesavailableinindustrial-countrymarkets.Globalizationfortheseemergingmarketfirmsthusmeansrespondingsuccessfullytothesetwochallenges.ThispaperidentifiescompetitivestrengthsofLatinAmericanandotheremergingmarketfirmsthathavebeenfoundinpreviousresearchbythisauthorandothers.ItthengoesontopresentandillustrateaframeworkofTransformationalManagementthatcanbeusedbythesefirmstoassesstheircompetitivecapabilities,andtodesignRobertGrosseisaffiliatedwithThunderbird,TheAmericanGraduateSchoolofIn-ternationalManagement,Glendale,AZ.Addresscorrespondenceto:Thunderbird,TheAmericanGraduateSchoolofInter-nationalManagement,15249N.59thAvenue,Glendale,AZ85306(E-mail:[e-mail]).TheauthorwishestothankMarieGantandCarrieWheelerfortheirresearchassis-tanceonthisproject.TheauthoralsowishestothankFranciscoPiedrahitaforhisvalu-ablecommentsonanearlierversionofthispaper.LatinAmericanBusinessReview,Vol.4(4)20032003byTheHaworthPress,Inc.Allrightsreserved.DigitalObjectIdentifier:10.1300/J140v04n04_011ARTICLESstrategiestosucceedindomesticandinternationalmarketsagainstcom-petitorsfromothercountries.[ArticlecopiesavailableforafeefromTheHaworthDocumentDeliveryService:1-800-HAWORTH.E-mailaddress:[e-mail]:©2003byTheHaworthPress,Inc.Allrightsreserved.]RESUMEN.Lasempresaslatinoamericanassesientenamenazadasensupropioterritorioporlacompetenciaprovenientedelasmulti-nacionalesdelospaísesindustriales,asícomoporlasoportunidadesqueexistenenlosmercadosdedichospaíses.Porende,paraestasempresasqueoperanenlosmercadosemergentes,laglobalizaciónimplicare-sponderexitosamenteaambosretos.EsteestudioidentificalasfuerzascompetitivasenAméricaLatinayenotrasempresasdemercadosemergentesdescubiertasenunainvestigaciónrealizadaanteriormenteporesteautoryotros.Acontinuación,presentaeilustraelmarcodelaGestióndeTransformaciónquedichasempresaspuedenusarparaevaluarsucapacidadcompetitiva,yparatrazarlasestrategiasnecesariasparalograréxitoenlosmercadosdomésticoeinternacionalcontrasuscompetidoresdeotrospaíses.RESUMO.Asempresaslatino-americanastêmsidoameaçadas,emcasa,pelacompetiçãocommultinacionaisdepaísesindustrializadosedesafiadaspelasoportunidadesdisponíveisnosmercadosdepaísesindustrializados.Aglobalizaçãoparaestasempresasdemercadosemer-gentessignifica,portanto,vencerestesdoisdesafios.EstetrabalhoidentificaasforçascompetitivasdaAméricaLatinaedeoutrasempresasdemercadosemergentes,pesquisadasanteriormenteporesteautoreporoutros.ContinuaapresentandoeilustrandoaestruturadaGerênciaTransformacional,quepodeserutilizadaporestasempresas,paraavaliarasuaaptidãoemcompetireplanejarestratégiasquepropor-cionemoseusucessonosmercadosdomésticoeinternacional,emoposiçãoaosconcorrentesdeoutrospaíses.KEYWORDS.Emergingmarkets,globalization,LatinAmericado-mesticfirmsCANEMERGINGMARKETFIRMSCOMPETE?HowcanfirmsfromChileorVenezuelahopetocompetewiththeglobalgiantsoftheFortune500(ortheFinancialTimes500;ortheNikkei500)?Thisquestionformsthebasisforthefollowinganalysisofcompetitivestrategiesthatcanbeusedbyfirmsfromsmallcountries2LATINAMERICANBUSINESSREVIEWandfirmsfromemergingmarketsintheglobalizedcompetitionoftheearlyyearsofthe21stcentury.Theresponsetothisapparentlysimplequestion,asonewouldimag-ineuponinitialreflection,is:itdepends.Itdependsontheindustry;itdependsonthecountry;itdependsonthetargetmarket;itdependsontheparticularcompany;itdependsontheleadersandmanagersin-volved,etc.Theanalysisbelowtakeseachoftheseconsiderationsinturn,buildingaresponseframeworkforemergingmarketfirms.Afirststepistodefineglobalization.Thistermhasbeengivenmanymeaningsindifferentcontexts.Globalizationmaybethehomogeniza-tionofpeople’stastesanddemandpatternsaroundtheworldduetoin-creasedaccesstointernationalcommunicationofinformationaboutproductsandservices,aswellasincreasedaccesstotransportationofproductsandpeopleacrossborders.Justaswell,globalizationmaybeseenasthethreatoflossofnationalidentityinresponsetothehomoge-nizationoflifestylesaroundtheworld.Withoutenteringthedebateofgoodversusbadglobalization,thepresentanalysisfocusesonthewaysinwhichfirmscandealwiththeopportunitiesandthethreatsofgreatermarketaccessbyinternationalfirmstomarketsliterallyaroundtheworld.Globalizationofthefirminthiscontextisdefinedsimplyasthedevelopmentofcompetitivecapabilitiesthatenablefirmstocompetesuccessfullyagainstrivalsfromandindifferentcountries.COMPETITIVEADVANTAGESINTHEDOMESTICMARKETEmergingmarketfirmscanusuallycompetemoresuccessfullyinthedomesticmarketthanabroadbecausetheyhavecompetitivestrengthsthatarecreatedorreinforcedbythatmarket.Thesimplestcompetitivestrengthtoseeinthiscontextisgovernmentprotection.Ifthehomegovernmentplacestariffsorotherbarrierstoimportsintoanindustry,thendomesticproducershaveaclearadvantageoverimporters.Thisadvantagemaybeerodedifforeignfirmssetuplocalproduc