What is one reason that impels some emerging market firms to pursue a springboard strategy?Group of answer choicesoffshore availability of technology and brandshome government support for going globalstrong presence of global rivals in their domestic marketsdesire to compete with the biggest and best corporations
Question
What is one reason that impels some emerging market firms to pursue a springboard strategy?Group of answer choicesoffshore availability of technology and brandshome government support for going globalstrong presence of global rivals in their domestic marketsdesire to compete with the biggest and best corporations
Solution
One reason that impels some emerging market firms to pursue a springboard strategy is the strong presence of global rivals in their domestic markets. This strategy allows these firms to quickly acquire resources and capabilities that can help them compete more effectively.
Here's a step-by-step explanation:
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Emerging market firms often face intense competition from global rivals in their domestic markets. These global firms usually have more resources and capabilities, making it difficult for the emerging market firms to compete.
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To overcome this challenge, some emerging market firms pursue a springboard strategy. This involves making strategic acquisitions or forming alliances with other companies to quickly acquire the resources and capabilities they need to compete.
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For example, an emerging market firm might acquire a company that has a strong brand or advanced technology. This can help the firm to improve its competitive position in its domestic market.
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In addition, the springboard strategy can also help emerging market firms to expand into international markets. By acquiring resources and capabilities from other companies, these firms can better compete with global rivals not only in their domestic markets, but also in international markets.
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