Gupta and Wang explain how many MNCs view China and India solely from the lens of off-shoring and cost-reduction, and focusing their marketing strategies on only the top 5-10% of the population. This is a missed opportunity. China and India are the only two countries that constitute four realities that are strategically crucial for the global enterprise.
This book aims to shed light on the brutal competition for markets and resources in China and India, and also lays out the strategic action implications for those companies that want to emerge as the global players of tomorrow.
It's like this. You have these two American educated foreign nationals who think that their native countries are going to soar past the rest of the world, and any "Global" company that doesn't pander to the micro-markets of India and China, and supply products and services to those people will lose out big time. Bullocks, that is what I have to say about their thesis.
The number one rule of microeconomics is that businesses run on the margin. The authors advice is to ignore the margins and invest exorbitant time and money to exploit micro-margins of the emerging middle class in both India and China. Their warning is that "Global" companies that don't pander to emerging micro-markets in China and India will meet their doom. To tell MNC's that if they don't spend exorbitant amounts of time and capital developing these micro-markets that they will lose out, doesn't make any sense. Even if they jump in to the micro-markets in India and China feet first there is still no guarantee that they will win. Companies that stick to the highest paying market segments are companies that win. This is simple intuition. Companies or individuals for whom it is beneficial to exploit micro-markets will do so, and they will receive a benefit for doing so, but like the old micro-economic business adage states "businesses are run on the margin", and this reality will dictate what markets businesses invest in, not the bad advice of two economic hacks looking to make a quick buck selling a book with bad advice in it.
These authors are hyping their respective countries with the idea that global markets are a zero sum game. They are under the single minded impression that a lack of eagerness in developing micro-markets at an exorbitant cost to the "Global" companies will doom companies in irreparable ways. This is simply not true nor is it viable.
In the 1980's there were a dirth of books touting the doom of American and other multinational companies that would occur as a result of the enormous growth of Japanese companies. Most of these predictions are laughable nowadays. That is the thing about books like these and predictions like those made by the authors, most often they are wrong. These authors and their predictions will end up on the same scrap heap as similar books written by people in the 1980's. The main reason is that India and China are completely reliant on exports to America for their respective economic growth. That is fine and dandy until America reaches its saturation point with Chinese and Indian products. If MNC's exploit the low labor wage rates of India and China like the book suggest, then Americans will no longer have jobs nor will they be able to afford Indian and Chinese exports. That will put a nice solid end to Chinese and Indian growth.
Furthermore, the book is riddled with a revenge attitude. China and India will grow despite the despicable treatment they received under Colonial British rule. These authors are too stupid to realize that the only reason that their people were so easily exploited in the first place is because their people were stupid. Plain and simple. It's not like those people over there, at least in India, have gotten any smarter. They are totally reliant on someone else to invent the technology that they exploit. What happens when exploited technology becomes subject to export restrictions. The bottom line is that these authors and their assertions are ill founded. Their logic is totally flawed and their ideas are ridiculous.
Don't waste your time or money on this hack trash book.
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Very well discussed and explains the need to move to the East as early as possible
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