The Future of Business in Emerging Markets: The Success Factors For Market Growth In The 21St Century
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Since most developed world economies will grow slowly under the burden of public and private debt in the next decade, the corporate focus on growth opportunities has shifted to emerging markets. Financial indicators already suggest sales and profit growth will largely come from emerging markets. Written by a leading expert in emerging markets, this book explores what will change economically and what are the overriding business megatrends that will shape corporations and their strategies in global markets. It shows how companies can take advantage of that growth opportunity in emerging economies in the most efficient way and how to prioritise resources geographically for the best short, medium and long-term returns.
throughout this book), one underlying factor is incredibly important. At the global level, emerging markets must receive the same seriousness, focus, and attention as the developed world. These days, this often means that emerging markets are getting a larger-than-usual proportion of corporate business development funds. BUILD AND NURTURE A “TWO HEADED MONSTER” There are two obvious corporate temptations these days, and both are wrong. First, in some companies there is the temptation and
fluctuate and growth can be patchy for reasons sometimes outside the control of well-run emerging market economies. The whole exercise of market monitoring must have at least two goals. First, to determine which areas are likely to be growth markets in the upcoming period, why that is and then use that information to allocate business development resources to such places that deserve them. It is important that the whole “going deeper into emerging markets” exercise is executed in a sequence,
recommended. In such cases, there is no real choice but to set them up and to try to run them by using best practices for running joint ventures. Or make sure that the contracts (if legally possible) allow companies to take control eventually, or at least exit the contracts without too much pain. If there is no legal requirement, companies should ask themselves before going into a potential joint venture nightmare the following question: what is it that the local partner can bring us that we
shots you never take. — Wayne Gretzky SO MUCH SUCCESS IN EMERGING markets depends on building and executing marketing excellence, that the topic deserves a chapter on its own. If the previous chapter was largely about building strategic and structural foundations, this one is about adding one of the critical elements on top of that foundation. This chapter examines what companies need to do with their product, distribution, promotion and pricing in order to build a sustainable business
the next five years and recognized that we were not satisfied with many of our distributors there. After several unhappy experiences playing hardball with them, we shifted to a philosophy of engagement. Our staff have now come up with a number of initiatives that through a combination of incentives and motivations puts the distributor on our growth path.” Sometimes neither engagement nor hard ball helps. I find this to be a frequent issue in some Middle Eastern jurisdictions. One of the MEA