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In Emerging Markets, Sometimes It Is Better to Let 'gray' Point the Way
| Content Provider | Semantic Scholar |
|---|---|
| Author | Rubesch, Edward Banomyong, Ruth |
| Copyright Year | 2005 |
| Abstract | Emerging markets are expected to provide much of the future growth for established multinational companies, yet strategies for entering these markets are often risky and uncertain. Transportation and distribution infrastructure in emerging markets may be limited due to a lack of reliable service providers and credible channel intermediaries. The combination of these factors may lead to a situation where companies find themselves competing with their own products that have entered the emerging market through parallel channels. However, while part of the literature suggests that informal parallel channels form because of impediments to free flowing distribution, the informal sector may also provide the solution to the challenges of entering emerging markets for multinational companies. This study describes the case of an informal network of border traders that has formed to supply consumer products to Vientiane the largest market in Lao PDR. It examines how this network effectively competes with authorized channels, and determines that the informal channel is also providing customer value, which would otherwise not be met. The paper concludes with suggested implications for developing distribution strategies in emerging markets. |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | http://www.bus.tu.ac.th/usr/ruth/file/gray%20border%20channel.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
