How does multinational enterprises from developed markets succeed in emerging markets? An investigation based on Telenor

Hilde Christine Hillestad

Student thesis: Master thesis

Abstract

Emerging markets are less developed markets that are at a later stage of development than other less developed markets. They are characterized by high growth potential, low market capitalization, and poverty. The most important difference between an emerging market and a developed market is that an emerging market is a market where buyers and sellers are not easily or efficiently able to come together The recent growth of emerging markets given them increased attention. The world’s largest emerging markets include Brazil, Russia, India, and China and they account for more than a quarter of the world's land area and more than 40% of the world's population. In addition to the four largest there are many other countries that are starting to emerge into the worlds formal economy, and together they represent an enormous growth potential for Multinational Enterprises (MNE’s) from developed markets. Recent research have been investigating the differences in emerging markets from developed markets with emphasis on the growth potential in these markets, and the challenges for MNE’s from developed markets who want to enter emerging markets. These challenges are mainly attributed to market conditions that differ from their home markets to a varying degree. This report builds on recent research by taking the focus away from what challenges that are inherent in emerging markets for MNE’s from developed markets, by investigating MNE’s that are already successful in emerging markets and thereby identify how challenges are handled, not only where they can occur. The research has been carried out by using one case company; Norwegian Telecom company Telenor to provide general conclusions for all MNE’s from developed markets that are doing business in emerging markets using the scientific logic “If this is (not) relevant for this case it is relevant for all (no) cases presented by Flybjerg (2004)

EducationsMSc in Strategy, Organization and Leadership, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2011
Number of pages81