As per the global data for demographics, more than two-third of the global population resides in the regions of developing or under-developing world. Developing world surpasses the global business arena with colossal opportunities and potential customers. Customers in the developing world are less aware of the innovation processes and scientific advancements induced in the market; therefore, they are more likely to take interest in the brands and products launched at their end. The developing worlds is the most rapidly emerging arena for attaining business success, as well as, grow and expand in the era of changing customer demands.
In the developing world, multinationals and many successful entrepreneurial ventures are a huge success, whereas, situations have been a total contrary for other firms. It is quite an evident fact that managing businesses in the developing world is a colossal challenge, as well as, a grand scale opportunity. Firms who know the skill of managing business organizations in the environment of developing world make legacies out of it, and those who do not, record disaster failures (Porter, 2008, 37-70).
The paper analyzes the business environment, as well as, the concepts of strategic management in such environment. The paper strategically analyses both companies discussed in the articles with an internal analysis, whereas, performs a general strategic analysis of the external environment. The paper pertains to a detailed analysis of strategic perspective for growth and development in the developing world, as well as, critically assesses these criteria. The case is based upon conducting strategic analysis for cellular companies based in Nigeria. The case concludes with summarizing key points, as well as, recommending initiates for business enterprises developing in the developing world.
External analysis
The external assessment section pertains to PESTEL analysis, as well as, Porter's five forces present in the developed world. This assessment aids to present a more affirmed view of strategic environment for the businesses. More or less, all developing countries undergo same problems and situations.
PESTEL analysis
The factors considered for PESTEL analysis are discussed below;
Political
The political environments of these countries are very much unstable that causes troubles for businesses. The government is oft-changing, whereas, there is huge number of public protests going on, that hinder the economic activities.
Economic
The economic paradigm of business environment pertains to functioning of economic variables in the country. Economic variables are mostly unfeasible to the country, currency depreciation, inflation, as well as, other indicators do not show affirmative signs. However, the potential for economic growth is very high for such countries.
Social
The social factors pertain to the living of people in the country. The paradigm of social living in such nations is very much restricted and companies often find it very difficult to reach the target market, as well as, advertise ...