Book review: ‘The New Emerging Market Multinationals’ can trigger soul-searching among MNCs
Until the 1990s, multinational companies from the developed world were the ones with all the advantages. They lorded it over markets with their mammoth budgets, their vast reach and capacity to spend on research. Local companies were mostly restricted to either throwing price challenges at these MNCs or offering a local customisation the bigger companies did not care to pursue.
But much has changed since. Some erstwhile ‘local companies’ from the emerging markets have themselves turned MNCs. I remember once speaking to Praveen Jaipuriar, Dabur’s Senior General Manager for Marketing, who had this to say: “We know if we do not have a certain capability, we can acquire it or even pay and get the best in the field to do the research for us.” It sums up the approach of the emerging market MNCs. That is not all. These emerging giants are also swooping down to buy companies in other countries.