MNC Growth in Emerging Markets Based on Understanding of Customer Behaviour  and Development of Reliable Distributor Network : a Case Study on EPLSG, Russia

University essay from Högskolan i Kalmar/Handelshögskolan BBS; Högskolan i Kalmar/Handelshögskolan BBS; Högskolan i Kalmar/Handelshögskolan BBS

Abstract: In this thesis we examine the issue of growth in emerging markets and in specific how MNCs can achieve growth by understanding the customer and building a solid distributor network on the example of EPLSG in the Russian market. In this context we investigate the correlation of the growth potential with institutional environment, customer behaviour, distributorship and brand equity. But let us briefly examine the structure of the thesis chapter by chapter. Chapter one explains the five main themes that structure our thesis from a theoretical and an empirical point of view. Chapter two is an account of the methodology used for the conducting of the empirical research as well as of the whole thesis. Chapter three outlines the theoretical background of the thesis while chapter four is a description of the empirical data found on the field. Chapter five is the analysis of the empirical findings and in chapter six the reader can see the conclusions and recommendations for the case company. Finally, chapter seven gives directions for further research. Overall, the authors of this thesis purport that in emerging markets an MNC can grow if it can effectively gather and analyze customer and market data as well as build appropriately a distributor network that can deliver the product to the customer and fully capture the market potential. What differentiates this thesis from other studies is the holistic appreciation of the problems that an MNC faces in an emerging market. The building of theory was based on this perspective as well as the recommendations for the case company. That is why, in chapter seven the recommendations for the case company should be read not as individual ones but as set of interconnected tactics that can allow an MNC to grow.

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