Penetrating Emerging Markets

An emerging market is a term that investors use to describe a developing
country, in which investment would be expected to achieve higher
returns but be accompanied by greater risk.

Opportunities in Emerging Markets

  • Growing numbers of educated middle-class consumers equal Growing consumer spending
  • Cultural shifts e.g. higher demand for personal products, private education & healthcare
  • Demand for infrastructure and other products & services from developed economies
  • Source of high-skilled but low-cost labour, done via outsourcing or offshoring
  • Great potential for joint ventures and acquisitions in achieving mutual growth

Threats in Emerging Markets

  • An increasingly large pool of skilled, but low-cost labour
  • Undervalued currencies make their exports cheaper
  • State subsidy of industries to make them more competitive globally
  • Inadequate protection of brand and other intellectual property

The Rise of Emerging Markets

Emerging Markets has consistently demonstrated higher gross domestic product (GDP) growth than developed countries through past market cycles.

GDP Growth in Emerging Markets Outpaces Developed Markets

Key Emerging Market Strategies

CREATE CUSTOMIZED OFFERING

Considering the company’s expertise and strengths, notice how products are used in the market and modify current company products.

DEVELOP BUSINESS MODELS TO OVERCOME OBSTACLES

Through data gathering and small pilot runs, find out in detail what the obstacles are to succeed. Learn what can be done to overcome them.

DEPLOY CUTTING-EDGE TECHNOLOGIES

By using available, standardized advance technology, create jobs that need little training, experience and skills. Improve the speed and quality of communication.

TAP LOW-COST LABOR

Study the cost of purchasing, installing & maintaining advanced equipment, & compare that to local labour cost. The hiring, training & supervising of local people could be much less costly.

BUILD SCALE QUICKLY

After success in one region, to avoid quick copying by competition, a company should find trusted partners nationwide and cover the whole country quickly.

DEVELOP LOCAL MANAGEMENT TALENT

Local management talent is always a key to success. Developing local management is vital for growth.

Entry Mode & Market Development

Competitor Market Share

Sample Market Launch Timeline

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