Abstract
This study looks into the common strategic moves of Chinese firms to create appeal for their products in emerging markets. The focus is on the common competitive factors that make them to have high rate of success and prosperity compared to first movers firms from advanced markets in developing countries marketplace. Past studies showed that a firm without established brands, technology knowhow and management capabilities are likely to face with survival and performance problems, and may also reduce the firm's strategic options and growth opportunities in developing economies. Chinese firms are known to lack established brands and important core capabilities but have been able to demonstrate a unique trend in emerging countries market place. They have a common structure and trend in the ways Chinese firms create appeal to users and potential buyers in emerging market environment. This present research explored the situation with case research interview of seven Chinese firms in Nigeria.
TopOverview Of Nigeria Business Environment
This general prologue is to give an overview of some of the significant changes in Nigeria business environment and their effects on trade and inflow of foreign direct investments from emerging multinationals from emerging markets to Nigeria. After the independence of Nigeria, and the discovery of large amounts of crude oil in its Delta region in the 1960s, the Nigerian economy boomed through to the 1980s (Odularo, 2008). It became the strongest economy in Africa, and attracted investors from all over the world. Indeed, at the time, African Leaders nicknamed Nigeria as the Giant of African.2 The favourable business environment during this period attracted a good number of multinational energy giants to Nigeria (Zongwei, 2006). The majority of these firms were from the United States, United Kingdom and Europe. Examples of these firms include such giants as Royal Dutch/Shell PLC, the first and the largest operator of a joint venture with Nigerian National Petroleum Corporation (Odularo, 2008). Others include Exxon Mobil Corporation, Chevron, Total Elf and Texaco. Apart from multinational corporations that invested in the energy sector, companies such as United African Corporation (UAC), Leventis, Nestle, and Cadbury invested heavily in the country as well as the Peugeot Automobile Company from France, and Volkswagen from Germany that both have assembly plants in country.
Key Terms in this Chapter
Affordability: Consumer’s financial ability to acquire desired firm’s offerings.
Bilateral Trade Agreements: Bilateral Trade Agreements (BTAs) provision are standards employed to negotiate and regulate the conduct of trade issues between two countries in order to achieve long lasting trade resolutions to the mutual benefit of parties involved.
Market Respectability: General perception of consumers on the impact of a firm’s business activity on economic and social development, which are ways to help to accept their offerings.
Availability: This is the level at which offering are made accessible or at hand when needed by consumers.
Market Positioning: A firm market activities to positively direct consumer’s perception towards its offerings to gain an advantageous position.