And in Mexico, Grupo Elektra has beaten Wal-Mart as the country’s top retailer.ĭomestic dynamos like these dominate foreign rivals by applying six strategies. In India, Bharti Airtel has trumped Vodafone as the market leader in cellular telephony. And they’re seizing new opportunities before multinationals can.Ĭonsider: In China, search engine Baidu is used seven times more than Google China every day. If you’re setting out to compete in rapidly developing economies, beware: Smart domestic enterprises are staving off the challenge from global market leaders. Rethink their own strategies before local rivals shut them out of lucrative emerging markets. Global companies would do well to study these models of achievement and, armed with acquired wisdom, Successful as homegrown champions have been-and this article identifies 50 of them-a few multinationals, such as Yum Brands, Nokia, and Hyundai, have managed toīeat the locals at their own game by using the six-part strategy. No element on its own is groundbreaking, but in the aggregate the strategy isĪ potent one, as the authors illustrate with the story of Ctrip, China’s largest online travel agent. Six, they invest in top management talent in order to sustain rapid growth. Five, they scale quickly by going national before regional rivalsĬan challenge them. Ways to benefit from low-cost labor and train workers in-house to overcome shortages of skilled employees. ![]() Three, they create or buy the latest technologies and use them effectively. Overcome market-specific obstacles and gain competitive advantage in the process. One, the homegrown winners customize products and services to meet local needs and initially go after economies of scope. The secret is to adopt most, if not all, elements of a six-part BhattacharyaĪnd Michael of the Boston Consulting Group show how these domestic Davids have achieved that impressive feat. A substantial number of local companies in emerging markets have managed to hold their own-or better-in the face of competition from global Goliaths.
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