Business In Asian Emerging Markets A Focus On Inclusive Growth

Author : Shana Mezzanatto-McNair
Publisher :
ISBN 13 :
Total Pages : 40 pages
Book Rating : 4.:/5 (112 download)

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Download or read book An Analysis of Business Strategies for Economic Growth and Expansion of Digital and Online Tech Industry written by Shana Mezzanatto-McNair and published by . This book was released on 2019 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: Executive Summary Indonesia, an emerging market, has the attention of the global economy. Being a part of the ASEAN (Association of South East Asia Nations) the economic growth has been remarkable in all regions. Many foreign investors and start-ups have ventured to the ASEAN and have profited due to simplified tariff structures, reduced and removed tariffs, barriers and restrictions (ASEAN, 2019). Regardless of the undeniable economic success ASEAN has had, the real question is whether the US Market could economically benefit by applying the same business strategies that Southeast Asia has implemented in the online platforms and e-commerce industry. Many foreign countries and investors are scrambling to take part in the exploding market in Southeast Asia. But is it too late for the US to join the bandwagon? It appears so. Western distribution channels were already set up in ASEAN yet the US missed out on a golden opportunity. In fact, they failed when they attempted to replicate eBay as mobile users increased and online connectivity soared in ASEAN. Why? They did not give the customer what they wanted. Many mobile users who were English speaking grew the gaming and eSport market into a billion dollar industry in within the ASEAN. The unicorn startup and Singapore born Sea Company, an online gaming platform company now has successfully expanded into e-commerce and digital payment services. How did they have such success? They truly met the needs of their targeted market, Southeast Asians. Extensive research was compiled of the similarities and differences of the online tech industry in South East Asia and the United States. An additional two week in person observation analysis was conducted. This included Sea company power point presentations, meetings, interviews and ongoing Q/A with management and staff at the Shopee Division in Jakarta Indonesia. It was found that the US was already in the mature stage of the Product Life Cycle of digital online tech industry compared to the growth stage Southeast Asia was experiencing. It would be impossible for the US to expect the same Southeast Asia e-commerce business strategies to work and have the same end results. First and foremost, the US simply does not have the favorable demographics to start. The US being a mature economy with limited growth opportunity in the three areas of focus; online gaming, e-commerce and digital payments, the US did not have the surge in economic growth nor a rise in a middle class which has increase individual purchasing power. The Sea Company has honed in their product development to accommodate and cater to the Southeast Asian customer. This is where the US has failed when trying to enter into Asian markets. The Southeast Asian customer has now become the focus and the Sea Company is dominating the gaming platform industry, growing the ecommerce and expanding the digital financial services in this specific market. The tremendous success of the Sea Company has gained the attention on the world, especially since it is the first Southeast Asian Tech Firm holding an US IPO on the NYSE in 2017. Through analyzing the Southeast Asian market, their competitors, the online platform industry and the success of the Sea Company, from the Macro context to the micro level, specific findings show how the US online-ecommerce industry emerged and developed very differently. By using a PESTLE analysis, an Industry analysis, SWOT Analysis and an Internal Organizational analysis it was found that the Sea Company was set for success in ASEAN based of the following four findings: 1. The focus was placed on needs and desires for Southeast Asians, with region specifics based on culture, religion and habits. 2. The Government, especially in Indonesia supports and encourages growth of the digital tech market and promotes foreign investment. 3. The urbanization and consumer growth are steadily increasing as poverty levels continue to rapidly decline and consumer spending has increased 4. The macroeconomic and government stability of the ASEAN has provided a platform for economic progress, trust and globalization. This growth though is not without some concerns. There is concern over how citizens will build trust in public and political institutions, adapt to online methods of payment, if the government will establish fair laws for the citizens, implement appropriate online platform regulations and decrease the level of corruption within. Southeast Asia will continue to have opportunities for international and foreign investors as their growth will continue beyond online platforms. We see the expanding markets into e-commerce and digital financial services rapidly growing. The US also will benefit in different ways from this growing economy even though they will not be able to reincarnate this type economic growth as the ASEAN has. The US cannot step in to Southeast Asia and attempt to introduce their own online platforms and expect to take over market share. The US has its own online platform and e-commerce giants domestically, as in the case of Amazon. Southeast Asia though has no need for an international e-commerce business to come in and introduce their way of doing tech business. Rather Southeast Asia is growing their own talent, boosting the success of Southeast Asians and showing the world how they can innovate, adapt to change and have real success. Southeast Asia will happily take the financial support of foreign investors in most cases but as of now Southeast Asia has its own startups and plans for what Southeast Asians need, want and desire. In the end, Southeast Asians know what they want and how to get there. What they do need is the foreign investments. This is were established and developed countries play an important role in the future growth of Southeast Asia.