Strategies For Success In Emerging Markets

By M. Isi Eromosele

In recent times, emerging markets have been experiencing phenomenal economic growth that has enabled many of these nations to collectively become the engine of global expansion. These countries, from Asia, Africa and Latin America are determined to increase their global competitive advantage, even as they strive to raise their populations’ standard of living. These markets present an important source of continued opportunity for global companies from developed nations.

Foreign investment, which been historically limited, is now purposely increasing. It is our recommendation that this is the time for global countries to increase focus, investment and resources on emerging market nations such as Brazil, Indonesia, India and Nigeria. These countries possess great global ambitions and are in the midst of a tremendous transformation phase signified by rapid infrastructure and economic development. The gross domestic product (GDP) of these nations is expected to grow by an average of 8 - 12 percent while that of the developed world is projected to grow at about 4 - 6 percent in the next four years.

The business backdrop in emerging markets does present some challenges, including scalability to meet massive opportunities, cultural differences, localization of assets and transfer of success. To be successful in emerging markets, global companies must operate from a local office and form partnerships with local companies that have industry expertise. There needs to be considerable product localization, strong local competency development and local business decision making empowerment.

For many global companies, a major hurdle is how to replicate their success in a developed economy into an emerging market with greatly different characteristics. Superimposing a business model used in a developed nation like the United States unto an emerging nation such as India on is not an option. It will simply not be feasible. A workable solution is to take the best practices from business processes in developed countries and customize them to fit economies in the emerging markets.

Global companies should establish flexible business models that enable them to develop repeatable processes which can then be applied within multiple emerging countries. The approach within each business model is replicated within each emerging market but customized to focus on new industries in which emerging nations lead, such as energy and globally needed commodities. The model is then replicated across emerging markets and looped back into the suitable developed country.

Partnering is an imperative in developing business opportunities emerging markets. Companies would to cultivate strategic alliance partners that are familiar with and knowledgeable within specific regions. They are required to help maintain communications with governments, enterprises and local service providers. Building strong relationships with the public sector in emerging markets are essential to accomplishing stated business objectives in these countries.

Now is the time to enter emerging markets and participate in the transformation that is taking place in each one of them as well as in the opportunities being created in these fast-growing areas of the world.

M. Isi Eromosele is the President | Chief Executive Officer | Executive Creative Director of Oseme Group - Oseme Creative | Oseme Consulting | Oseme Finance

http://twitter.com/osemegroup | http://twitter.com/oseme22

Pages

Oseme Finance