The world is changing, economies also.

There is a growing importance of emerging economies accounting for around 45% of world GDP with fantastic economic growth. These economies become more and more attractive, thanks to reforms made by governments. MNCs from developed countries interested are more interested to establish their business in emerging markets. However, instead of penetrating emerging markets with new products and strategies, they generally tend to make small changes in their existing products and reproduce existing strategies or marketing to address customers needs. Utilization of imported and already vision, strategies and mix marketing in emerging markets generally lead to failure because of the unique characteristics of emerging markets (Bhattacharya & Michael, 2008; Fan, 2008). Some multinationals are often being beaten by local firms owned by indigenous. Doing business in emerging markets means doing differently meaning taking part of social responsibility when doing business as well as using different business practices to cope with local conditions. Multinationals corporations most of times come with misconceptions under which developing markets are far behind developed ones; with less sophisticated needs or requirements; and that emerging markets are just following the footsteps of developed markets (Bhattacharya & Michael,2008) . Chandra & Neelankavil (2008) recommends all firms to follow a product development process that is customer driven to be sure that the product will change customers life. The product development process shall be done through the management of four key issues characterizing emerging markets: Low income of population, low ability of technologies development, issues with capital markets not allowing raising fund for innovation and the creativity issue as most of companies use technology driven approach of product development instead of customer approach (Chandra & Neelankavil, 2008). Small business in developing countries faces the above mentioned problems. In many cases such as Focus Media in China, Grupo Positivo in Brazil, Airtel in India or Dangote in Nigeria, indigenous business owners are doing better than multinationals not because of protectionist barriers which disappear progressively (Dawar & Frost, 1999) but rather because of their strategy and their strategy execution (Bhattacharya & Michael,2008; . Firms following only low cost structure generally failed because of their low customer driven approach of innovation. For a local small company, that wants to succeed in its marketplace, Bhattacharya & Michael (2008) recommend following a six part strategy. The six part strategy that a business owner shall pursuit is built around: develop custom made product and services for the unique need of customers (Dawar & Frost, 1999); select business models that will allow to circumvent difficulties; utilize the newest technologies, use in-house training and low cost of labor characterizing emerging market as competitive advantage; growth quickly to avoid fierce regional competition and leverage talent management for quick and sustainable growth. Investing in emerging markets and facing fierce competition of multinational possessing significant financial resources, long experience of business practices, superior technology and leading brand (Dawar & Frost, 1999) can be daunting and risky task. Therefore it is critical for any indigenous businessman to understand when to collaborate or to stay independent. This decision shall mainly rely in actual positioning and organizational capabilities, government support to firm activity when needed, Strategy versus mobilization of resources and risk aversion of investor (Li & Matlay, 2006). In addition to this, alliances can allow growing both business as collaboration leverage unique advantages of MNC and local business. The competitive advantages of local entrepreneur such as knowledge about customers, their local talent management skills, their ability to overcome hurdles of doing business in their home markets can be combined with financial resources, technology superiority and global know how of MNCs (Ghemawat &Hout, 2008). Collaboration with a business in more developed country is therefore profitable when a SME seeking to internationalize could benefits knowledge of MNCs about their market, their customer needs, and their business environment allowing local SMEs to access niche markets, to make some costs saving (Li & Matlay, 2006) such as entry cost and to focus in some part of value chain and not trying to build a fully horizontal and vertical integrated business.

In emerging, a business owner in local business shall therefore be flexible, targeting niche segment, leveraging convergence in costs (Ghemawat &Hout, 2008) and business similarities to benefit numerous advantages of collaboration. When doing business abroad, costs advantage available in home market could quickly crumble (Fan, 2008) and could lead to more expensive product possessing lesser or similar quality than the ones available in in global market. To overcome such risk, collaboration is necessary with company installed abroad; and business owner shall start learning and continuously improved their knowledge (Fan, 2008) about new markets that will allow them when ready to stop collaboration and increase their presence. References:
Bhattacharya, A.K. & Michael, D.C. (2008) How local companies keep multinationals at bay, Harvard Business Review, 86 (3), pp.84-95, [Online]. Available from: http://search.ebscohost.com.ezproxy.liv.ac.uk/login.aspx?direct=true&db=buh&AN=30028332&site=ehost-live&scope=site (Accessed: 09 January 2014). Chandra, M. & Neelankavil, J.P. (2008) Product development and innovation for developing countries: potential and challenges, Journal of Management Development, 27 (10), pp.1017-1025, [Online]. Available from: http://dx.doi.org.ezproxy.liv.ac.uk/10.1108/02621710810916277 (Accessed: 09 January 2014). Dawar, N. & Frost, T. (1999) Competing with giants. Survival strategies for local companies in emerging markets, Harvard business review, 77 (2), pp.119-129, [Online]. Available from: http://ehis.ebscohost.com.ezproxy.liv.ac.uk/eds/Citations/FullTextLinkClick?sid=b413d5b9-7c03-4d4b-a7376924dae18af4@sessionmgr4001&vid=1&id=pdfFullText (Accessed: 11 January 2014). Fan, Y. (2008) The rise of emerging market multinationals and the impact on marketing, Marketing Intelligence & Planning, 26 (4), pp.353-358, [Online]. Available from: http://dx.doi.org.ezproxy.liv.ac.uk/10.1108/02634500810879269 Accessed: 09 January 2014. Ghemawat, P. & Hout, T. (2008) Tomorrows global giants, Harvard Business Review, 86 (11), pp.80-88, [Online]. Available from: http://search.ebscohost.com.ezproxy.liv.ac.uk/login.aspx?direct=true&db=buh&AN=34870305&site=edslive&scope=site (Accessed: 09 January 2014). Li, J. & Matlay, H. (2006) Chinese entrepreneurship and small business development: an overview and research agenda, Journal of Small Business and Enterprise Development, 13 (2), pp.248-262, [Online]. Available from: http://dx.doi.org.ezproxy.liv.ac.uk/10.1108/14626000610665953 (Accessed: 09 January 2014).