Emerging Markets Rule: Growth Strategies of the New Global Giants
SEIZE THE ADVANTAGE IN THE GLOBAL WAR FOR MARKET SHARE
Winner of the 2013 Small Business Book Award - Top 10 Overall
The newest economic behemoth, China, is snatching market share from the U.S., Japan, and Europe at an alarming rate. But China isn't alone. The world's largest producers of biofuel, meat, consumer electronics, regional jets, baked goods, candy, and many other products are all emerging market multinationals (EMMs). And industries poised to be taken over by EMMs include personal computers, IT services, mining, wind turbines, and cement.
The balance of power in the global economy is shifting.
Are you in a position to compete with the most energetic, imaginative companies on the planet?
In Emerging Markets Rule, two experts on the global shift in economic hegemony explain what is happening, why it is happening--and how you can prevent it from happening to you. The authors provide an action plan based on leaner, more operationally proficient ways for maintaining the competitive advantage based on seven new axioms of global competitiveness:
- Execute, strategize, and execute again
- Cater to the niches
- Scale to win
- Embrace chaos
- Acquire smart
- Expand with abandon
- No sacred cows!
Emerging market multinationals are here to stay; they're not going to go away, even when the global economy rights itself. "What began as a necessity--a kind of guerilla-business warfare against the corporate superpowers--has now evolved into best practices and is on its way to becoming what everyone needs to know," the authors write. "Simply put, down is up. The weak have become strong."
You need to learn these new "best practices" now because tomorrow will be too late. Emerging Markets Rule is your road map for business success in the increasingly competitive, chaotic global markets.
"Emerging-market multinationals have reshaped global competition. Using well-articulated views duly substantiated with facts, this book explains why and how they have become formidable players in both high-technology and traditional industries. This book is a worthy read for businesses and individuals alike seeking to comprehend the phenomenon of the emerging market multinational." -- S. D. Shibulal, CEO and Managing Director , Infosys
"This book shows the strength and potential of companies that stand out in emerging markets, reaffirming entrepreneurship, innovation, and sustainability as fundamental factors for the outbreak of global competitors." -- Alessandro Carlucci , CEO, Natura Cosmeticos
"The authors have touched on an important idea that emerging market growth can often be tapped by companies located in those markets. This is an essential book leading us to identify the niche markets and strategies for those emerging markets. A must for all international companies with growth ambitions." -- Leonard A. Lauder, Chairman Emeritus, The Estee Lauder Companies
"A must-read for any company on its way to becoming a global one. You will learn from companies that have developed unique ways of competing in tough markets such as China and India." -- Jorge Zarate , China General Manager, Grupo Bimbo
components required for the wind turbines. They don’t have access to the component technology. The real technology part is in the components. So if you own the two technologies, and integrate the two, then you have the most competitive product, which is reliable and next generation…. To grow the supply chain is the key bottleneck in the industry.”24 But vertical integration across so many manufacturing and service activities is not possible without a solid proprietary technological base. And one
established in 1950 by Onsi Sawiris. While developing and building everything from dams and highways to shopping malls, the company acquired two capabilities that are invaluable to the telecommunications industry: experience in the execution of infrastructure projects and experience in dealing with politicians and regulators. Sawiris got a taste of political risk in 1971 when his business was nationalized. Five years later, under a new political regime more favorable to private business, he
“State giveaways are no longer the norm,” one executive told us. “Access to cheap credit isn’t either. Production technology is not proprietary. Our competitive advantage lies in managing people and processes.” Rocca emphasizes how important it is to integrate acquisitions. “A challenging point for us is being able to manage very different cultures and to adapt and incorporate them into our company. We need to capture brilliant people from diverse cultures. We are establishing an evaluation,
CHAPTER 6 1. Fortune, April 13, 2009. 2. The Wall Street Journal, January 12, 2009. 3. Ningbo, March 5, 2011. 4. Ningbo, March 5, 2011. 5. Fortune, April 13, 2009. 6. www.forbes.com/profile/carlos-slim-helu. (Accessed June 19, 2012.) 7. New Yorker, June 1, 2009, p. 58. 8. Ibid., p. 61. 9. http://en.mercopress.com/2011/02/11/colombian-oil-and-coal-reserves-attract-latam-s-tycoons. (Accessed January 18, 2012.) 10. Amanda Knauer, “Ocimum Biosolutions: Genomics Outsourcing in India.” In
industries and widely divergent premium brands, including apparel, beverages, coffee, meat, snacks, tobacco, leather goods, personal care, shoe-care products, and even some household items. By the late 1990s, though, the giant was showing feet of dough. Investors demanded a new strategy, one that would enable the firm to overcome its lackluster performance in the wake of enhanced competition. Sara Lee responded by divesting from “noncore” businesses and focusing on “core” ones, such as food,