For the following essay, generate a complete UWE Bristol Harvard style References Section
Introduction 
Business literature and researchers are increasingly interested in emerging markets as these markets offer many opportunities. Businesses enter these markets to stay competitive. Eyring, Johnson, and Nair (2011) argue that differentiation and cost leadership strategies can invade these markets. They say a company must start from scratch to profit from the lucrative middle market. This essay analyses this new business model using differentiation and cost leadership strategies. It will also examine emerging market MNC challenges. 
Emerging Markets and How MNCs are faring
To ensure their continued success, MNCs in developed markets are increasingly concentrating on emerging markets with strong growth prospects. According to Eyring, Johnson, and Nair (2011), 40% of MNCs target the Chinese and Indian markets, which present both opportunities and challenges. Low market capitalization encourages quick market expansion, which facilitates investment and offers high returns in the business economy (Paul, 2020). According to Wall's Ansoff Matrix Theory, companies can maximise growth by focusing on new markets and creating products for them.
MNCs are utilising artificial intelligence and machine learning to increase their global competitiveness in developing markets (Zeng, 2018). According to Porter's Five Forces Model, MNCs must strengthen their competitive advantage and lessen threats from substitutes and new competitors. Following Value Innovation's emphasis on balancing low costs and differentiation to render competition irrelevant, MNCs in emerging markets are required to cut costs and accept low profits.
To ensure sustainable growth and global competitiveness in emerging markets, MNCs must use strategic models like the Ansoff Matrix and Porter's Five Forces to adjust to new market conditions, invest in technology, and innovate while keeping costs low.
Differentiation and Cost Leadership in emerging markets
In emerging markets, multinational companies prioritise product differentiation and cost leadership. This strategy seldom succeeds, with MNCs frequently replicating their business models from developed markets, where affluent consumers seek premium goods and services (Carsten et al., 2014). In emerging markets, multinational corporations either reduce their profit margins to attract more customers or target only high-paying customers, both of which are detrimental to profitability.
High-paying customers do not generate enough profit in emerging markets (Shitseswa E. Ayub, 2019). To capitalise on "middle market" expansion, MNCs must differentiate and set the price standard. By understanding and enhancing services, MNCs can attract more middle-class customers, who make up a large portion of emerging economies. Alibaba's success in China stems from its ability to meet the needs of the middle market (Zeng, 2018; Hanninen, Mitronen, and Kwan, 2019). When implementing differentiation and cost leadership strategies in emerging markets, MNCs face management challenges. They must first adapt their products and business models to the cultures, economies, and demographics of emerging markets. In 2016, Uber left China, allowing Didi Chuxing, a local competitor, to dominate the market (Ho, 2018).
Second, multinational corporations must manage supply chain complexities in emerging markets with inadequate infrastructure and unstable regulatory structures. In India, Walmart encountered supply chain inefficiencies and regulatory problems (Chittoor and Ray, 2007). Finally, emerging markets must effectively manage their human resources. (Madhani, 2017) Multinational corporations struggle to retain talent, engage employees, and offer competitive compensation packages while maintaining cost leadership.

The differentiation and cost leadership model provides growth opportunities for MNCs in emerging markets, but it also poses challenges for localization, supply chain management, and human resources. To enter the lucrative middle market, multinational corporations must adapt and innovate by utilising local insights and customised strategies.
Recommendations 
To avoid falling into the challenges faced by MNCs in emerging markets, companies need to be able to provide more efficient ways of providing solutions to the customer demands. This according to the authors, is a unique characteristic of the emerging market. The customers in these markets are more concerned about the ease of access as well as their propensity to afford the products and services. Therefore to properly exploit this market, MNCs could first identify the needs of customers and then research into providing newer and more efficient ways of targeting them for solutions which of course will be profitable for the companies and yet at the same time affordable for the customers.
Conclusion 
According to the paper, multinational corporations must use product differentiation and cost leadership strategies in emerging markets. MNCs struggle in emerging markets due to their reliance on strategies and models from developed economies. Due to poverty levels and specific customer demands in emerging markets, multinational corporations (MNCs) must tailor their products, services, and pricing strategies to the middle market segment, which comprises a substantial portion of the consumer base.