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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 705 |
Essay's paper body
Products designed for affluent consumers often aren't profitable at prices low enough to attract many buyers in emerging markets. And even if they are, a multinational might damage its global brand by selling its products cheaply.
Jahwa's strategy has allowed it to weather the initial opening of China's markets—a period when multinational companies often appear irresistible to consumers and local competitors alike...
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At first, consumers often flock to foreign brands out of curiosity or out of a blind belief in their virtues. Procter & Gamble, for example, grabbed over half the Chinese market for shampoo in just a few years, despite the substantially higher price of its product. But by focusing on offerings that reflect local preferences, Jahwa was able to protect some sales and buy time in which to build up the quality of its products and marketing...
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