Business Strategy and Overcoming Lack of Market Institutions upon Entering Emerging Markets - Case Study of Heiwado's Entry into China -
The purpose of this study is to examine how businesses confront lack of market institutions when entering an emerging market and building and implementing a business model to realize a corporate business strategy, in addition to how those businesses respond to the lack and establish competitive superiority. The case study used in our research was Heiwado Co., Ltd., a retailer that has established stores mainly in Shiga prefecture and that started business in China's Hunan Province in 1990. This case study allowed us to confirm that lack of market institutions impart a significant impact on the success or failure of a company's entrance into an emerging market, and also that adroitly handling these restrictions allows a company to build and implement a business model with competitive superiority.
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