Managing and emerging out of institutional voids
By Vaibhav Aggarwal
Print    Email    RSS   

Companies can start fresh businesses to fill these voids. They can either act as intermediaries initially and later make an exit from the business or can integrate these businesses into their original businesses so as to obtain an integrated trading channel. It would also bring in a new business idea into the emerging market platform.

Apart from innovation, adaptation to institutional voids is also seen a means to succeed in emerging markets. Khanna and Palepu come up with a classic example of adaptation in the book by the name of the Brazilian company Cosan which is the producer of bio fuels in the country.

Cosan has been able to adapt to the institutional voids existing in the Brazilian market and come out as one of the largest producers of sugar and ethanol in the country. The company has been able to stand out against local as well as foreign competition from MNCs due to its operational knowledge in the field and an urge to invest in systems related to its production facilities.

There are, however, some voids which are irreparable or involve high costs for both MNCs and local players. In such cases the companies can expand in more conducive markets which are free of such voids. Local players can also implement the strategies developed in home markets in other emerging markets which have similar market segments.


Page    | 12 |
(Comments Posted : 1) Post Your Comments
1. Good Day !!

I am Hwa Jurong, a Reputable, Legitimate & an accredited money
Lender. I want to use this medium to inform you that i render reliable beneficiary
assistance as I'll be glad to offer you a loan at 2% interest rate to
reliable individuals.

Services Rendered include:

*Home Improvement
*Inventor Loans
*Car Loans
*Debt Consolidation Loan
*Line of Credit
*Second Loan
*Business Loans
*Personal Loans
*International Loans.

Please write back if interested.
Upon Response, you'll be mailed a Loan application form to fill. (No social
security and no credit check, 100% Guaranteed!) I Look forward permitting me to
be of service to you. You can contact me via
Yours Sincerely,

Hwa Jurong(MD).
Hwa Jurong (Posted: Jul 6, 2015)
Show All Comments
 Select a product:

 Select a product:

Consolidation good for creating healthier...
Gold based financing; 'loan to buy gold...
Carnival of Indian Personal Finance Blogs #3
Central Bank of India ordered to return...
Carnival of Indian Personal Finance Blogs # 7

We offer financing without delay. Interested should...
HOTEL: CaℒL Giℛℒs In Kharar 09855660911...
Model Escoℛts Service In Pune 8888IOO484 Caℓℓ...
What is the outstanding Amount for my personal loan

LVB bank joined hands with NCML Feb 18, 2015
Syndicate Bank hiring 5000 new staff Feb 12, 2015
SBI donated Rs 8.6 cr as a part of CSR activity Feb 11, 2015
Canara Bank tied up with NHBC Feb 9, 2015
Hiring for Probationary clerks in South Indian Bank Feb 5, 2015
News Archive