Boston Consulting Group shows how domestic companies in emerging markets have managed to hold their position the face of competition from global companies. It includes a six-part strategy. 1. Create Customized Products or Services 2. Develop Business Models to Overcome Key Obstacles 3. Deploy the Latest Technologies Amul uses customized ERP system to make 10 million error free payments every day 4. Take Advantage of Low-Cost Labour and Train Staff In House 5. Scale Up Quickly 6. Invest in Talent to Sustain Rapid Growth These are the six strategies for success .The advantage of being a MNC in emerging markets have declined dramatically in recent times. Many local companies have used the benefits of globalization to bridge gaps in technology, capital, and talent with their rivals from the developed world.
2. Tomorrows global giants not the usual suspects
Multinational corporations from developed and developing economies are aggressively expanding their global presence in emerging markets. Established MNC and emerging local players have different strengths, threats and weakness to their markets but MNCs lead in businesses with high percentage of revenues going to R&D and advertising as compared to local companies.
3. Unleashing fashion growth McKinsey
This article is about a study conducted by McKinsey exploring the global womens apparel market growth and what this growth means for the market. The growth rate is forecasted to increase by 50% over the next 12 years, largely driven by the increasing weight of emerging markets such as China and Russia. Historically, the global womens apparel market has grown at just over 3 percent per year however by 2025 the growth rate is expected to approach 5 percent per year. By 2025, womens apparel is expected to account for 55% of global apparel sales and 60% of sales growth and shift is driven by faster growing and emerging markets. Top growth cities are Beijing, Shanghai and Moscow. cities are from emerging markets. The womens apparel market growth offers a unique opportunity for emerging countries to get involved in the market as well as established countries to adapt to these changes and accept them.
4. The four global forces breaking all trends McKinsey
Four trends for change are1. The age of urbanization Countries are becoming more urbanized growing by 65 million every year Emerging markets will account for nearly half of global GDP by 2025 and 46 of worlds top 200 cities will be in China Emerging economy will grow 75 % faster than developed countries 2. Accelerating technological change- 1 trillion objects expected to connect to internet by 2025 and main are internet of things and mobile internet 3. Responding to the challenges of an aging world- Global life expectancy is increasing and share of older workers will increase 4. Greater global connections- Volume of Trade, Finance, People and Data are increasing and 500x increased in global online traffic in 2000-12.