Emerging Markets Penetration Strategy in the Deglobalization Era - A Case Study of the NEV Industry in Southeast Asia

Abstract

In recent years, due to the slowdown in global economic development and shifts in the balance of national strength, the trend of deglobalization has arisen. This trend has introduced various risks to multinational enterprises, including political instability, trade protectionism, and supply chain disruptions. Despite these challenges, there is an enduring need for businesses to explore new markets, particularly during the period when emerging markets are experiencing rapid growth. Among these emerging markets, Southeast Asia represents a market of significant potential, especially within the burgeoning new energy vehicles (NEV) industry. This paper uses the NEV industry in Southeast Asia as a case study to explore the challenges that companies may face when penetrating emerging markets. These challenges range from unstable political environments, export-oriented economies, underdeveloped infrastructure, scarcity of skilled talent, to cultural and religious diversity. In addition, the paper also discusses the opportunities that come with these challenges in the current era.

This study draws on an analysis of market data, reviews of Southeast Asian policies, and interviews with industry practitioners. Utilizing real world examples, the paper aims to synthesize a strategic framework to guide companies in navigating emerging markets.