To a larger or smaller extent, every market relies on local partners, suppliers, and infrastructure no matter how strong or weak they may be. Learn some techniques which may help to understand how to positively cultivate and leverage local ecosystems.
- Most emerging markets suffer…from a number of ecosystem challenges.…Poor infrastructure,…a fragmented supplier base,…and persistent quality problems…in locally-sourced raw materials and components.…Smart companies address these challenges…by proactively strengthening the local ecosystem.…Take the case of how Nestle, the Swiss food giant,…strengthened the ecosystem for milk supply in China.…
China is notorious for food hazards.…The risks of contamination are particularly far reaching…in the case of milk,…since more than 70% of Chinese mothers…rely on baby formula to feed their babies.…Longstanding concerns regarding unsafe milk in China…came to a head in late 2008,…when the Chinese authorities accused…more than 20 domestic producers of selling milk…adulterated with melamine.…
Six infants died…and more than 50,000 babies were hospitalized.…In 2011, regulators closed more than 400 dairy farms…for violating sanitation and certification standards.…Like other companies selling dairy products in China,…Nestle relies on imported milk powder…
Which emerging markets should you enter? How do you enter the targeted market? Do you partner with another company, or go it alone? How should you deal with the regulatory constraints that you might face? Anil and Haiyan address these questions, and more. They also outline some of the issues that arise once you have entered an emerging market, such as how to win out over local competitors, market to the bottom of the pyramid, and deal with the speed of fast-changing market dynamics.
- How emerging markets differ from developed markets
- Designing entry strategies
- Identifying the right beachhead
- Competing and succeeding within the market
- Cultivating and leveraging the local ecosystem
- Dealing with rapid changes in market dynamics
- Leveraging China and India as global platforms
- Building the leadership for emerging markets