Global Business in Emerging Regions Essay Example | Topics and Well Written Essays - 3500 words - 2

Global Business in Emerging Regions - Essay Example Ltd (OGES) Present market: USA and European market Emerging market: overall Africa and especially Nigeria Cause of moving out: Over saturation in the present market and poor economy Advantage: Business expansion and market diversification Main challenge: Poor infrastructure and political problem Entry strategy: agency formation and hire- purchase strategy News Link: The assignment has taken a clue from news with the headline â€Å"Africa’s Richest Man Bets Big on Oil Refinery† published in Wall Street Journal. (http://online.wsj.com/news/articles/SB10001424052702304607104579210322347689090). The news tells that a Nigerian man Aliko Dangote, the richest man in entire Africa for last two decades is going to step in oil refinery business. The estimated investment is $9 billion for coming two years to construct the largest private refinery in Nigeria. It is expected to produce more oil compared to any African country. PART A Company & Industry Analysis Company overview: In this case it is supposed that the certain organization (OGES) is a manufactures of tool and machineries, which are used in oil refinery business. The organization manufactures valves, liquid level gauges, digital flow meters, intube exchangers, electrically heated exchangers and many more equipments used in refinery facilities. Basically it is an ancillary company of oil and gas exploration and refining sector. Industry/Sector Overview: Many big companies across the globe are present this business. Companies which are making equipments for oil and gas refineries like Armstrong Engineering Associates, Inc. John C. Ernst Co., Inc and Shangqiu Jinyuan Machinery Equipment Co Ltd. are the competitors of the business. The level of competition is fair and health. These peer organizations have an association in the form of chamber of commerce to discuss and address the sector specific problems. The company has operation in the US and European market. Saturation in the Present Market: It is known that the US and European market is highly saturated and overcrowded. Manufactures from other areas like Chinese and Indian companies are giving tough competition in the US and European market. More over the economies of these two areas are not growing. So much so that dome countries are reporting negative figures. The problem has started in 2008 with the initiation of sub prime crisis. It is nearly six years; the problem has not been solved. It is very difficult to run a business in such a country which is not growing. Limited expansion opportunities and limited marketing scopes restrict the business to grow further. But if a business is not growing it is actually lagging behind its competitors because they are growing. So if a particular market or region is not working favorably, it is advisable to focus on other areas. Market diversification and product diversification should be the regular agendas for a successfully running business over a long period of time. Identificatio n of Emerging Market: But it not only diversification it wants to spread its wings in others areas as well. In this contest, Nigeria, a Sub-Saharan-African country is considered as the destination. Because the organization thinks that Africa in general and Nigeria in specific can be viewed as the emerging market. The growth of overall African economy is much better than the US and European economy. It is always advisable to bet on something which is rising or growing rather that which is facing