From Copycats to Innovators Case Study Example | Topics and Well Written Essays - 1000 words

From Copycats to Innovators - Case Study Example After knowledge acquisition, the multinationals then focus on mid-tech innovative products thus leading to affordable products through the reverse innovation process. Good examples of new innovations are China's BYD, a battery maker that has attained huge market in developing electric cars and Tata’s Nano Car that is cheaply priced at approximately $ 2,500 and mass-produced across the globe (Peng, 2013). Another core capability of emerging multinationals is the ability to adapt the emerging technologies to small-scale markets of the developing economies. In this case, the company is capable of developing a specialized variation of the product and incrementally improving the product in order to meet the needs of the niche market (Peng, 2013). For instance, Samsung of Korea and Acer from Taiwan have built their global reputation and market share through adapting the technology to the domestic markets and focusing on specialized variations of the mainstream products offered by mu ltinationals in developed economies (Peng, 2013). Emerging multinationals enjoy cheap labor and access to natural raw materials in their production process (Peng, 2013). Developing countries enjoy the high number of semi-skilled and skilled labor that offer their services at low wages and huge natural raw materials thus reducing the overall costs of production. In addition, the companies face lenient government regulation due to low concerns about climate change, product quality standards and pollution in the economy (Peng, 2013). The emerging multinationals have more freedom in initiating new structures and values, unlike the established global players that have long histories and static cultures (Peng, 2013). The multinational from developed countries enjoy certain core resources and capabilities that enable them to compete effectively in the market.