This article from http://www.strategy-business.com discusses ‘new’ ways to secure business in emerging market, most notably India, China and Brazil. I’m not sure how ‘new’ they really are, but Wijeratne et al (2017) make some good points. First, companies have become more reluctant to seek business in these markets because their GDP growth has slowed. Despite this, their future growth will be higher than predicted growth in Europe and the USA, so firms should continue to look for opportunities.
Second, they suggest that the shift from being an emerging market into a more fully developed market requires three ‘prerequisites’, each of which presents business opportunities. These three are:
- Human development
- Institutional development
- “Growth platforms’ i.e. infrastructure development
Third, emerging markets present generic challenges, such as inflation and government mismanagement, which need to be understood. And each country has challenges that need to be addressed specifically. In Brazil for instance, these are supply chain bottlenecks, trades unions, and bureaucracy.
Finally, Wijeratne et al (2017) suggest that firms seeking to develop in such markets need to adopt three specific tactics:
- Operational efficiency. This includes planning ahead for wage inflation, adopting shorter term forecasting and hence business plans to be more flexible, and actively develop supply chains.
- Innovation. This applies not just to new product development aimed at meeting local consumer needs, but also marketing innovations and process development.
- ‘Go-to-market ecosystem’. This relates to setting up a network of contacts and partnerships that will facilitate entry, speed up growth and secure the future.
The article concludes by looking at some specific industry sectors in these markets, including agriculture, health care, manufacturing and financial services.