Multinational Companies

By Author: Sherry Roberts
Total Articles: 81
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Introduction
Over history, small companies not only in Latin America have faced stiff and sophisticated competition from multinational companies in all continents of the world. That has made it difficult for these companies to realize their long term goals particularly at a global platform (EIU, 2011). Latin America confectionery industry is seeing a steady rise in its local and regional prospects and still strives to triumph over the hurdles of the competition through redefining prospects regarding the future. At the current, global economic turmoil represents the new challenge for confectionery firms in Latin America (Bhattacharya & Michael, 2015). Having already gone through crises, executives can draw upon their experience and ability to navigate through these difficult times. Most of them also face unmanageable competition at home and in the international market. However, these confectionery companies in Latin America may increase their chances to outperform the multinational competitors by following a set of recommendations.
1. Create customized products or services.
To champion, a more extensive ...
... market confectionery companies should begin by possessing an understanding of the consumers in their home countries. That entails preferences by region or even city, by income level, by age group, and by gender. They should also grasp the structures of the raw materials, components, and finished goods markets in which they operate. That will enhance the ability to provide consumers with a low level of customization inexpensively (EIU, 2011).
2. Develop business models to overcome key obstacles.
Confectionery companies often complain about insurmountable problems; structural issues such as a lack of distribution channels, or infrastructural hurdles like limited telecommunications bandwidth, that prevent them from operating business in their ordinary way. Confectionery companies should be adept at identifying the key challenges that their markets pose and, and build on these while designing strategies pave ways to overcome or sidestep those obstacles. Sure, multinational enterprises make use of same tactics (Dawar & Frost, 2015). Confectioner companies should thus sharpen their first-mover advantages.
3. Deploy of the latest technologies.
Contrary to popular perceptions, local winners’ products and services often incorporate the latest technologies. New technologies keep evolving and strive to bring operating costs low, thereby enabling companies to deliver good-quality products and services at a low cost. That will help them outperform competitors that believe they can satisfy local consumers with older technologies (Blanch & Winch, 2012).
4. Taking advantage of the available low-cost labor, and train staff in-house.
Many of the multinational champions have at their core a business model able to tap a pool of cheap labor rather than relying on costly automation. Confectionery companies ought to figure out ways to operate at lower costs too before they recover from start-off shocks (Blanch & Winch, 2012).
5. Scale up quickly.
In several of the emerging markets, whenever a new business opportunity becomes apparent, many companies crop up with a desire capitalize on it. The size of countries in the Latin America particularly the large number of provinces and cities allows regional players to flourish. However, only those companies that operate on the most massive scale get the opportunity reap the highest benefits of scale. Many of these homegrown champions search for scale economies only realizing economies of scope. Expansion often entails mergers and acquisitions. Some local champions create regional entities to speed up organic growth. By quickly overcoming the distribution problems of the market, these companies would lay a better foundation for success (Bhattacharya & Michael, 2015).
6. Invest in talent to sustain rapid growth.
In several markets of the emerging economies, confectionery corporations are facing domestic rivalry within their entrepreneurial zeal and in their knack to continuously grow rapidly for a short time. To their shock, they discover that there exist greater local managers in the scene. In fact, most of the illustrational transnational giants snatches their management depth and use it against these rivals. They are sure of the additional advantage of not needing to negotiate over failure. Confectionery companies ought to know there exist global competitors whom to win call for a mightier hand (Dawar & Frost, 2015).

Sherry Roberts is the author of this paper. A senior editor at Melda Research in research paper writing service. If you need a similar paper you can place your order for a custom research paper from online research paper help services