What makes for a good businessman in a highly changing and uncertain competitive world? Surviving the fittest in current business environment and exploring the new emerging markets may take him to peaks and perks. For country like India already getting outsourced by global corporations, due to its cheap labours, also India enjoying it’s English speaking advantage over china in outsourcing. It is time that emerging markets have estimated a big need for big and small investors, but already big corporations emerging in emerging markets. Also there are a lot of opportunities for Small and medium size investors all over the world. Recently I attended a seminar on doing business with LATIN AMERICAN COUNTRIES (LAC) and United States of America, in Chennai (India), Where I got some key points in business over regional, and cultural barriers with effective and appropriate tools.
It is not appropriate if I will mention here about business with USA, because there is a strong relationship between India and US in business, culture too (yes, Indians performing American practices in management, education, entertainments, etc…US using India’s Yoga, Ayurvedics, etc.). But I like to mention some key points in it.
Basically Asians are cost-consious, but Americans are quality-conscious. So with US Size does not matter, Quality does. Adherence to Global Quality standards (by Quality Certifications or whatever) takes you closer to the deal. It helps the businessmen to relate your competency and capability to globally renowned benchmarks.
According to World Bank's 2006 Ease of Doing Business survey ranks India 116th among 155
(Based on Starting a business, Dealing with Licenses, Hiring and firing,
Registering property, Getting credit, Protecting investors, Paying taxes, Trading across borders, Enforcing contracts, Closing a business)
While Opportunities are immense, operating environment needs to be friendlier!
And more significant part, I impressed is on Market Entry Strategy through Business Presentation using effective Communication Tools and Practices, Quality Certifications, “FMA” Method, Understanding the Dynamics of the Market, Bridging Cultural Gap, Effectively Managing the Relationship...what is this FMA method??Fair-Magazines-Associations Method, it recommends to Visit the right trade Fairs, exhibitions and conferences all through the year. Subscribe to technical / industrial / trade magazines / journals related to your business. Associate your business with or join Industry Associations.
There are several examples like this to illustrate…!
Then Latin American countries: Untapped and emerging markets!!
LA countries are untapped markets, to tap this market, substantial awareness needs to be created about the potential of the region, amongst the Indian exporters. The entire Latin America was a neglected region for Indian businessmen due to various reasons.
To get breakthrough, what may be the most important factor to be considered?
Differentiated Marketing Strategy! Yes, The study revealed that the companies have attempted this market were not successful as they have approached the market with their own strategy in Marketing their products in LAC and not Formed any specific strategy for entering this market.
And It is also learnt that even some big Indian companies have tried to venture this market with their own strategy and financial strength, but unable to get into the market.
LAC region is blessed with abundant natural and mineral resources; there are several examples to illustrate…Argentina-Agro Products, edible oils; Brazil -Regional Jet aircrafts, iron & steel products, iron ore, wood pulp, foot wear; Colombia-Crude oil, chemicals, coal, gold, emerald; Chile-Copper, wine, salmon, paper, and pulp; Mexico-Petroleum, manufactured goods, silver; Venezuela-Petroleum, petrochemicals, steel, aluminium, etc…
Selecting a market platform to do business with LAC
Selection of market platform can be either the South Cone countries of Argentina, Chile and Uruguay or the mass markets of Brazil and Mexico. These two options lead to two different consumer value propositions. Here Dr. Ravichandran, Secretary General, Indo – LAC Chamber of Commerce & Industry mentioned, “Value proposition for markets in advanced state of demographic change and level of urbanization is different from that of markets are at the full stage of transformation”. So Brazilian and Mexican markets are gigantic mass compared to Argentina or Chilean markets. For these reasons, firms should focus on developing an effective strategy. With the two largest economies in the region, Firms have to determine whether the core market platform is Brazil or Mexico and then we can easily reach other countries too!