Strategic choices of an MNE in an emerging market: the case of Perfetti Van Melle.

In this paper, I examine the strategic choices of an Italian DMNE Perfetti Van Melle (PVM) in an emerging market using Dunning's OLI paradigm and Ghemawat's AAA framework. I seek to explicate the 'how' and 'why' of the strategic choices made by PVM in a resource-constrained environment marked by institutional voids. I find that PVM gained sustained competitive advantage by leveraging its unique ownership advantages and the locational advantages bestowed by India. In doing so, PVM adapted its business model and aggregated its globally recognized best practices to succeed in a complex and hyper-competitive market like India. Further, I also find evidence that PVM successfully recombined its market-seeking ambition with a huge prospective consumer base that sought global brands and quality products. [ABSTRACT FROM AUTHOR]