Entrepreneurship in Emerging Markets-Free-Samples for Students

Question: Discuss about the Entrepreneurship in Emerging Markets. Answer: Entrepreneurship in Emerging Markets According to Frederic (2013), analyzing factors that affect business performance before making the decision to expand to a foreign market is always fundamental. For Andoni Goicochea to make proper decision concerning whether to expand to Ciudada de panama or Guatemala City, he should have sufficient information concerning the opportunities presented by the two regions. Comparing the two countries, Guatemala presents more opportunities than Panama because the country has a fast growing population with high demand for burger bar and other fast food products. Christopher (2013) affirms that high demand is a great opportunity for business growth because it makes products to keep moving. Over the years, the culture of consuming burger bar in this country has been emerging, with most people especially the youth viewing burger bars as important commodity that should be used for various reasons. Although both countries are stable democracies, Guatemala is more suitable for this business because its government provides direct support to foreign investors (Frederic, 2013). This implies that because this is a foreign business that attempts to expand to this market, the chances of experiencing negative government influence are minimal. Comparing the two countries, Guatemala has a GDP growth rate that is more favorable than that of panama. According to Thi (2010), positive economic condition plays a key role in business growth because it determines the level of consumer spending and also the cost of products. This means that expanding this business to Guatemala will provide more chances of success than in panama because consumers in this country will have a lot of disposable income which will make them to purchase burger bars from time to time. The other factor that makes it suitable to expand this business to Guatemala is that in this country, competition is considerably low as compared to Panama. According to Nelson (2011), in Panama, there are many small, medium and big businesses dealing with similar product. In contrast, Guatemala does not have as many businesses dealing with this product as Panama and therefore means there are opportunities to explore. Although some well established firms dealing with similar product exist in Guatemala, the rate of population growth in this country makes them insufficient to meet the demand and therefore there is need for more businesses to be established. Being a new venture in a foreign country, this business may take long to thrive in Panama because firms have already grabbed their market shares and royal customers. This implies that Andoni should think of expanding this business to Guatemala because with the growing demand for this product, there is a possibility that he will real ize great success. Considering the business model, this business will realize high revenues in Guatemala than in panama because Guatemalans like getting value for their money. Because the business concentrates on high quality product, consumers in this country will be willing to purchase burger bars from this firm because they relate quality to prices (Frederic, 2013). There is a possibility that introducing this model in Guatemala will make the business to sell its products at premium prices and realize high purchase rate because one of the characteristics of Guatemalans is that they are always willing to spend high for quality products. References Christopher, C. J. (2016). Entrepreneurial Strategies for Emerging Markets. Journal of Business Strategies, 33(1), 154-168. Frederic, S. (2013). Local and Systemic Entrepreneurship: Solving the Puzzle of Entrepreneurship and Economic Development. Entrepreneurship: Theory and Practice, 37(2), 145-165. Nelson, T. P. (2011). Entrepreneurship in Emerging Markets: Strategies for New Venture Creation in Uncertain Institutional Contexts. Management International Review, 51(1), 56-78. Thi, P. K. (2010). Closing Doors and Opening Windows: Opportunities for Entrepreneurship in an Emerging Asian Country for a Seasoned Woman Professional. International Journal of Entrepreneurship, 14(51), 56-85