The powerful convergence of technology and business processes in today’s marketplace has enabled businesses to expand their operations. As traditional barriers to market entry crumble with the ongoing developments, multinational companies are rushing in to find new growth opportunities across sectors. Hence, connecting market intelligence and consumer insights with the possibilities of the new business world to define and deliver new realities is a must-have capability to win in emerging markets.
However, for local players, new market entrants generally pose major threats that impact their business. Accustomed to dominant positions within home markets, they suddenly face foreign rivals sporting a daunting array of advantages, including financial stability, technology, and superior product and advanced brand management skills. These factors often impact the survival of local companies in emerging markets. Moreover, with multiple factors influencing eCommerce adoption, many businesses are expanding into new, emerging markets with eCommerce, bringing us to the tipping point for e-commerce adoption. But, as is often the case, with opportunity comes challenge, and for businesses, the pressure is now on to grow post-COVID revenues by building new capabilities and strategies to succeed in emerging markets.
Successful businesses develop flexible strategies and short-term growth plans for surviving in emerging markets. Contact our market research experts if you’re looking to gain detailed insights to drive market success.
Three capabilities that are crucial to winning in emerging markets
When companies redefine their strategies to each country’s context, they can capitalize on the strengths of doing business in particular regions. However, before adapting their approaches, they must compare the long-term benefits with the associated costs. On completing this exercise, businesses will find that they have to develop specific capabilities that will help them succeed. We’ve listed a few critical capabilities that have helped our clients expand into emerging markets.
Ability to Adapt: Develop flexible strategies to succeed in emerging markets
The first and the most crucial factor to consider is operational efficiency which can be achieved in several ways. The brands we’ve collaborated with have seen significant benefits by developing flexible business strategies and devising short-term growth plans like annual and quarterly plans as opposed to a more comprehensive three to five-year growth plan. Dividing the decision-making power equally among local units and developing efficient supply networks through technology adoption and local partnerships have also contributed to their success in emerging markets.
Businesses must also reevaluate their manufacturing footprint by considering new markets that can be made their manufacturing hubs while also evolving trade linkages and market integration efforts required to succeed in different regions. Our market research experts can help you identify challenges in emerging markets and take the right course of action to mitigate them- Request a FREE proposal.
Ability to Innovate: Fine-tune products and services to meet the unique needs of your customers
Innovation is key to winning in emerging markets. Being a critical aspect of new product development, innovative strategies must be tailored for specific markets. It isn’t just product innovation, this capability can also involve finding innovative ways to reach untapped market segments, and those product or process improvements might even help drive improvements in home markets.
Our market research solutions have played a crucial role in enabling businesses across countries to drive growth by expanding into emerging markets. Request more information to learn more about our services.
Ability to Build a Network: Establish your presence across multiple channels and price points
Go-to-market capabilities that are regularly reviewed enable businesses to identify and keep up with the dynamic trends in emerging markets. It includes conducting a detailed analysis of new technologies, sales channels, and an ecosystem of cross-sector partners. To establish a strong presence across channels, companies might need to build that ecosystem by adopting a proactive approach to local entrepreneurship and M&A.
Given the rapid advances across sectors, businesses should keep abreast of the latest industry trends and reimagine operations to radically lower costs and deliver remarkably better experiences in emerging market segments. Expanding into emerging markets on the cards? Request a brochure to find out how we can help.