EMERG ING M A RK ETS:

FROM COP Y CATS TO

INNOVATORS

NAME: NOR SHAZRINA BINTI MOHAMED RAZI

NGUYEN VIET
NICHOLAS CHAN ENG KIT
SOHEL DAWOODI
UOW ID:5046907/ J15017979
5075725/ J15017965
5160911/J15017986
5276044/J15019679

LECTURERS NAME: DR. ANANDA

WICKRAMASINGHE
S U B J E C T C O O R D I N AT O R : D R . P O H P H A I K
SEE

INTRODUCTION
These emerging MNC feared by known
MNC globally. Why?

Presently,
Acer

Emerging
MNC from
Emerging
Economies

Lenovo

Shenker. O. (2012) stated that when a

product that has been developed over the
past year that can be copied and brought
into market within days, the main player
will lose their advantage.

HTC
Foxconn
West Describes copycats as one that closely imitates another and indicated that the copycat
lacks of innovation.
Philosophy: Master and Student

QUESTION 1: WHAT ARE THE CORE RESOURCES AND

CAPABILITIES OF EMERGING MULTINATIONALS
FROM EMERGING ECONOMIES?
Emerging Economy: Progressive economy heading towards
advanced economy though growth &
industrialization.
Play significant roles in global economy &
politics
Eg. Brazil, Russia, China, India (Peng,
2008)
Emerging Multinational: Active global enterprise coming from
emerging economies (Collings, 2016)

RESOURCE BASED VIEW

Value

Rarity

*Satisfy customer demand

*Use Intimate Knowledge
*Imitate world class
competitors

*Customization
*Economy of Scale (low cost
of order)
*Target lower income
market

Example: Huawei P9 &

Xiaomi Mi5 cellphones
popular in China and a
replica of iPhone

Example: Tata Nano car

(however the car failed to
pick up in the market)

Organization
Imitation
*Learn to Innovate
(Exploitive / Radical)
*Learn to Replicate
(Duplicate / Create)
*Learn to Use (Imitate /
Create)
Example: IT industry in India

*Allocate Resources
Effectively & Efficiently
*Path Following is not a
Strength
*Local Adoption &
adaptation
Example: Huawei phone in
China, biggest imitators of
iPhone, spent over $1 Billion
for R&D, more than Apple.

PORTERS DIAMOND MODEL

H OW C ER TAI N
OR G A NI Z ATI ONS BEC OM E CO M P ETI TI VE I N C ER TAIN LOCATI ONS! !

Firm Strategy, Structure & Rivalry: Speedy Learning due to imitation. Companies also
transfer knowledge from developed economies and conform to local adaption.
Factor Conditions: As determined by Porter, Strategic Locations and ease of access for
cost effective inputs can give a multinational competitive advantage over its rivals.
Demand Conditions: Exclusivity of emerging economies makes it lucrative and profitable.
Such markets are characterized by affordable innovations, mid-level technology with low
cost input and customization towards mass distribution.
Related & Supported Industries: Cheap labour helps develop competitive pricing in the
global arena. China market is a very good example. However, it should be noted that
multinationals are now looking for cheaper labour market such as Myanmar & Cambodia.

QUESTION 2: WHAT ARE THE CORE RESOURCES AND

CAPABILITIES OF MOST MULTINATIONALS AND
DEVELOPED ECONOMIES?

Developed economy

Highly industrialized economy with large service sector

Core Resources

High GDP per capita income

High and stable economic development

built out infrastructure , transportation, communications

Advanced technology

Developed economy is also known as advanced

economy

Strong Intellectual Property Protection (E.g. copyrights,

trademark, patents)

Example: United States, Japan, Germany, Australia

High income and capital

CONT.
Capabilities
Skilled labor
Innovation and improvements (E.g. reverse innovation)
Constant development (research & development)

QUESTION 3: SOME OF THE COPYCAT STRATEGIES EMBRACED BY

EMERGING MULTINATIONALS HAVE VIOLATED THE INTELLECTUAL
PROPERTY RIGHTS OF THEIR RIVALS FROM DEVELOPED ECONOMIES. AS A
NEW CEO OF AN EMERGING MULTINATIONAL BROUGHT FROM OUTSIDE,
YOU HAVE JUST DISCOVERED THIS ISSUES AT YOUR NEW EMPLOYER.
WHAT ARE YOU GOING TO DO ABOUT IT?
Definition of copy differ.
E.g: emerging market define copy as a learning process.
developed market defined copy as immature & lack creativity.
Ethics means doing the right thing. But the right thing to do differs.
a set of moral values that govern an individuals behaviour or conduct a
certain task
(Oxford University Press, 2016).

CONT.
As CEO:
(1) Define ethics.
(2) Thorough
investigation.
(3) Propose action.
(4) Decision making on
whether action is
legal or not.

(Source: Adapted from Harvard Business Review, 2003)

CONT.
Re-evaluate Proposed decision. Is it legal?
If yes: maximize shareholders value.
If it does not maximize shareholder values?
Directors are pressured by organizational laws, hence they need to consider
other stakeholders interests.
Action taken may not optimize the shareholders value, but due ethical
reasons, its the best choice for the company.

LESSONS LEARNT
As emerging MNC progress along time
Many still lack in terms of technology
China being 10 to 20 years behind of developed nation for
Semi-Conductors
Approach emerging MNC took
Learning to compete with developed economies
Acquisition of other MNC
Example: Lenovo acquired IBM to learn how to
globalize
Imitating by leveraging their imitative knowledge
To cater to the needs and wants of customers in lower-

REFERENCES
Bazerman, M. H., & Tenbrunsel, A. E., 2011. Ethical breakdowns. Harvard Business
Review. [Online]. Retrieved from : https://hbr.org/2011/04/ethical-breakdowns [Accessed
on 30 September 2016]
Oxford University Press, 2016. English Oxford Living Dictionaries. [Online]. Retrieved from:
https://en.oxforddictionaries.com/definition/ethics [Accessed on 30 September 2016]
Harvard Business Review, 2003. The ethical leaders decision tree. Harvard Business
Review. [Online]. Retrieved from: https://hbr.org/2003/02/the-ethical-leaders-decision-tree
[Accessed on 30 September 2016]
Shenker. O., 2012, Ivey Business Journal, Just imitate it! A copycat path to strategic agility,
http://iveybusinessjournal.com/publication/just-imitate-it-a-copycat-path-to-strategic-agility
/

 Nicholas:
Introduction+Conclusion +
Slide
Sohel: Q1 + slide + report
compile
Nguyen hung: Q2 + slide
Shazrina: Q3 + slide + slide
compile

CREDITS
GIVEN TO

Q & A SESSION

THANKS