The New competitors: A study of EMNCs in developed markets
The new competition, the EMNCs from the developing parts of our world are companies that have finally managed to get the rightful attention. Some argue that their occurrence is something that will drive the world forward for decades to come while others point them out as a threat to the living standards of the mature Western markets. Our focus, when writing about these competitors has been on their internalization and the strategies when choosing to expand abroad to developed countries. Besides from this we have gathered a lot of information about the subject in general and the theories mentioned about why EMNCs do expand the way they do. By comparing our research results with the general theories we have tried to see if the earlier theories are still up to date and if there is something new worth mentioning. The results of our thesis showed that many of the theories mentioned by other authors about the subject are still relevant when comparing with the chosen EMNCs that we wrote about. In addition, differences between the EMNCs in the two chosen industries, steel and telecommunication, have been identified. The use of for instance Joint Ventures is much more common in the telecommunication industry than in the steel industry. Acquisitions and mergers on the other hand seem to be the more common way of doing business in the steel industry that generally is in need of consolidation.