The diffusion of work technology , and companies outward from the united states and the west into

emerging markets increasingly disrupts long running standards of globalization MNEs in advanced and
emerging markets respond in kind, rethinking their strategies and resetting their value chains to
compete in the brave new world. For both cohorts, the improving sophistication of information
technology opens new R&D options ; keener supply-chain logistics enables dispersing production ; and
new frontiers open for product ( solar cell panels made in Shanghai but sold in Stockholm) as well as
previously non-tradable service ( x-rays taken in Boston but read in Bangkok). These and similar trends
change location economics. As a result, the standards of configuring and coordinating value activities
evolve. Together, they spur companies in the weather markets as well as counterparts in emerging
economies to identify the best way to do so. Lets take as look at current trends.
Advanced Economies: Realization : Adaptation, and Innovation
Many MNEs in advanced markets got hit hard by the global meltdown. in the aftermath, many
reoriented their operations to still-growing emerging countries. Looking forward, wage patterns, debt
structures, and population demography suggest slow growth is not a short-term problem for the richer
countries. In contrast, economic recovery has turbocharged. Growth in developing countries, Analysts
expect nearly 70 percent of the world growth over the next few years to come from emerging markets,
with 40 % coming from China and India. For many MNEs, just being in leading emerging economies, no
matter the scale or scope of investment, takes precedence over prudently developing markets toeholds,
Other are further along, some motivated by the opportunity , some motivated by the fear that
companies that dont take a vigorous approach to China and India will face threats to their very
existence in as little as 10 years time.

For example, GM is going great guns in China, although it struggles in the united States. In 2009,
China overtook the United States as the worlds biggest auto market. In 2010, GMs China sales
surpassed those in the United States for the first time in the carmakers 102-year-old history. So, as GM
streamlines its value-chain in the United States, it expands it throughout Asia.
More pointedly, consider McDonalds. Russia is its fastest growing market; it had 275 outlets in 2010, up
from 128 in 2005. It plans to add hundreds more in the next few years, given the belief that Russia
remains the most dynamic, fastest-growing the profitable market for our system. Successfully getting to
2785 outlets required McDonalds to rethink its value chain. In the west, McDonalds buys ingredients
from third parties, rather than producing its own. Upon entering Russia, it had to build a proprietary
factory outside Moscow called the McComplex, given that there were no private businesses to supply
the 300 neefded ingredients. The fact that everything-from the hamburger patties tu7`o fries to buns-
was made from scratch at the MCComplex required Mcdonalds rethink how to best configure and
coordinate its activities.
Walmart, in collaboration with Bharti Enterprieses ( One of Indias leading business groups with interest
in telecom, agri-business, insurance and retail), showcases other angles. Walmart and Bharti Enterprises
are unfolduing tgheir pan-India strategy of acsh and carry whoklesale warehouses in line with ideas from
the base of the pyramid. The stores, under the brand name BedtPrice Modern WEholesale, are one-stop
shops that vmeet the day-to-day needs to restaureant owners, fruit and vegetasble resellers, kiranas,
offices, hotels, and institutions. Walmarts retail expertise and supply cha8in skills configure value
activities wehile Bharti contributes the local leadership needed to coordinate activities.
More dramatically, IBM ismaking India its center of gravity. IBM Indias headcount has grown from a few
hundred 1999 to 110,000 today-or about one in four IBM workers. Symbolizng the growing primacy of
its Indian operations was IBM;s historic decision to hold its annual Investors Day in 2007 on the grounds
of the Bangalore Plaace; this event hadf never before been held outside of the United States. The
change made perfect sense given that India is at the epicenter of the flat world, explained its business
development.
Traditionally, western MNEs preferred to control value chains, taking a measured approach to
concentrating some and dispersing others. Now, MNEs reason that going alone unacceptably, slows
expansion. Bharti Airtel, a global telecommunications company, is targeting fast-growing Africa. Rather
than deliberately configure its African value chain, Bharti Airtel hired IBm to supply the computing
technology ad services needed to upgrade its cell phone network across 16 sub-Saharan countries,
Besides coordinating customer services IBm provides the hardware, software, and services to coordinate
activities in billing, call-traffic management, and entertainment Services, Both companies see a win-win:
Bharti Airtel accelerates value chain configuration and IBM takes a :huge step forward what we think is
the next major emerging growth market.
Desarroolladora Homes, a Mexican builder of low-cost housing, highlights another angle. It configured
its value chain, explained its CEO, to serve communities in highly populated and underserved areas
where we believe our replicable business model will be most effective. The company launched a joing
venture in India and allied with an Egyptiasn company to build 50000 low cost new homes in Cairo.
Although perhaps obscure to many, MNEs like such as Haier, a chinesse white-goods firm; Asus; a
Taiwanese computer manufacturer, Embraer, A Brazilian aircraft maker, CVRD, a brazillian miner; MISC,
a Malaysian shipping company; Infosys, an Indian software giant, Sasol, a South African energy profucer,
Tenaris, an Argentine steel maker; Cemex, a Mexican cement compsny; and Ranbaxy, and Indian drug
company- steadily expand from local prominence to global distinction.

Going Forward
Unquestionably, as economic crises periodically show, circumstances can change far more than the most
optimistic or dire forecasts. Therefore, situations and trends will likely look different in five years time.
Dstill, current market circumsdtancves and location neconomics today compel MNEs from around the
world to rethink and, more often thatnot, reset how they configure and coorrdiante value chains. As the
CEo of IBM notes, the forces powering this trend are irresistible.. the genie;s out of the boytle and
theres no stoping it. Configuration standards are coordination oprotocols , always dynamic, will become
more so going forward.
MNEs awalnya beroperasi di negara maju. Karena adanya krisis global maka MNEs mengubah
orientasi pasarnya yaitu beroperasi pasar berkembang. Dengan alasan di negara berkembang pemulihan
ekonomi yang dikarenakan krisis global lebih cepat dan 70 persen pertumbuhan dunia berasal dari
negara berkembang sehingga peluang MNEs untuk meningkatkan pertumbuhannya lebih besar.
MNEs berlomba-lomba untuk berekspansi ke negara2 berkembang seperti cinas dan india dengan alasan
karena ; kesempatan, dan jika perusahaan tidak melakukan pendekatan ke cina dan india akan
menghadapi ancaman terhadap keberadaan usaha mereka dalam waktu 10 tahun kedepan.
Contohnya GM di China penjualannya lebih besar dari pada di Amerika Serikat, padahal di AS berdiri
sudah lama sejak 102 tahun yang lalu
Mcdonald di rusia naik menjadi 275 outlet pada tahun 2009 yang sebelumnya hanya 128 tahun
2005(Dengan Alasan Rusia negara yang cepat berkembang, dinamis dan menguntungkan pasar)
Ketika di negara bagian barat MCdee memasok barang-barang produksinya dari negara lain, tetapi
setelah berada di Rusia mcdonald berhasil memproduksi bahan-bahan sendiri.
Wal mart bekerja sama dengan Bharti enterprise, dengan kepentingan telekomunikasi, agri bisnis dan
asuransi dan retail. Walmart memiliki kemampuan dalam hal supply chain dan retail namun wall mart
belum memiliki nama yang kuat di India, sedangkan bharti memiliki kekuatan sebagai Local Leader di
India tapi tidak memiliki kemampuan dalam retail. Maka dari itu mereka bergabung agar mempunyai
konsep yang baik dan nama yang kuat di India.
IBM mengubah fokusnya di India, yang sebelumnya di AS. Karena India memiliki pertumbuhan yang
cepat. Contohnya : salah satu core event IBM yaitu Investor Day IBM diadakan pertama kali di India pada
tahun 2007, yang sebelumnya belum pernah diadakan diluar AS. Ibm mengubah operasional seperti
R&D di AS dipindahkan ke India, dipindahkannya operasi ini, menbuat karyawan di India lebih banyak
dibandingkan di AS
Cisco pada tahun 2007, memusatkan kegiatannya menjadi satu kesatuan di cisco timur, di Bengaluru.
Salah satu tindakannya ialah memindahkan CEO ke cisco Timur, hal ini menyebabkan pangsa pasar cisco
dari negara-negara bekembang tumbuh dari 8% - >20%.
Strategi yang digunakan ialah, mengidentifikasi negara2 yang memiliki peranan penting dalam
industrynya. Kemudian mengirimkan rancangan kerja(blue print) ke negara terkait untuk meningkatkan
produksinya.
MNE itu kan sudah menjadi trend yang besar, posisi mereka sudah tak terkjalahkan. Namun mereka
mendapatkan tantangan dari perusahaan lokal yang di dukung juga dengan krisis keuangan global.
Mereka lbh cepat pertumbuhannya karena efek lokal yang lbh murah costnya, sedangkan tidak dengan
di negara maju/pasar maju. Salah satu contohnya yaitu penjualan mobil di negara maju yang sudah
berkurang sedangkan di negara berkembang terbalik, penjualannya yang tumbuh lebih pesat bahkan
diprediksi sampai dua digit.
Jadi perusahaan2 berusaha menjadi ekonomis jadi mereka mencari cara untuk meminimalkan biaya dan
fitur-fiturnya. Mereka mengkonfigurasikan dengan labor yg murah serta dengan sistem IT yang efisien
sehingga dapat meningkatkan daya saing. Jadi engenering yg murah ini mencocokannya dengan
kebutuhan oranbg-orang yg ada di dasar piramid (lower income). Perusahaan di jenis pasar ini mereka
redesign agar costnya dapat hemat 90% tanpa mengurangi fungsionalitas, contohnya TATA yg membuat
mobik nano dengan harga +- 2900 dollars. Jadi TATA tidak mengurangi standar keamanannya, tapi
mereka lbh mementingkan fungsi dasar mobil ditanmbahkan dengan mengaplikasikan seni dan
teknologi.
MNE dari ekonomi berkembang ini mendesign ulang proses sehingga bisnis mereka bisa lbh baik dan lbh
cepat dibangingkan dengan rival mereka yang di negara barat. Selain itu banyak yang baru berdiri
jadinya mereka lebih flexible karena tidak ada legacy cost.