The new emerging market multinationals : four strategies for disrupting markets and building brands

Praise for THE NEW EMERGING-MARKET MULTINATIONALS One of Strategy and Business’s Best Business Books of the Year "This book is a real eye-opener. It will forever change your assumptions about international economic competition and who the winners will be." ―PHILIP KOTLER Kellogg School of Management and author of Winning at Innovation "An insightful read―essential for those wishing to understand the evolution and growth of emerging-economy EMNCs and how they will reshape global market structures." ―ANAND MAHINDRA, Vice Chairman and Managing Director, Mahindra Group, India "As this timely book so insightfully points out, the rise of emerging-market multinationals is shifting the global competitive landscape and forcing us to think hard about new growth, strategy, and talent equations. A must-read for business leaders responsible for navigating today's global environment. ―MUHTAR KENT, Chairman and Chief Executive Officer, The Coca-Cola Company "This book offers an array of fascinating examples and an interesting framework for stimulating thinking about EMNCs' strategic options." ―PANKAJ GHEMAWAT, IESE Business School, and author of World 3.0 "A must-read. The book is well researched and provides compelling case illustrations. I highly recommend it." ―W. CHAN KIM, Professor, INSEAD; Codirector, INSEAD Blue Ocean Strategy Institute; and bestselling author of Blue Ocean Strategy "This is the future of global competition. You need to understand it if you aspire to be a player or if global markets are now a part of your strategy." ―DAVID A. AAKER, Vice Chairman, Prophet, and bestselling author of Brand Relevance "This book gives a clear idea of the success formula of emerging-market multinationals by showing practical insights based on a deep understanding of EMNCs. This will help readers from any type of company structure their own growth strategies." ―WONHONG CHO, Executive Vice President and Chief Marketing Officer, Hyundai Motor Company "An excellent collection of ideas and examples that should inspire companies in emerging markets looking to build brands and markets anywhere." ―BUSINESSWORLD About the Book: LG. HTC. Tata. Haier. Lenovo. Arcelik. Natura. From smartphones and computers to blue jeans and beer, companies from China, India, Taiwan, Mexico, Turkey, and other emerging markets are now winning leading market shares with their own-branded, high-quality products―rather than with poorly produced products sold under others' brand names. These emerging-market multinational companies (EMNCs) are giving the incumbent market leaders of North America, Western Europe, and Japan a run for their money in the areas of innovation, branding, and marketing. How have these small, under-resourced businesses come so far so quickly? And what can you learn from their strategies and tactics? Renowned experts in global branding and marketing, the authors of The New Emerging-Market Multinationals conducted an in-depth study of 39 EMNCs to reveal the innovative compete-from-below strategies and tactics fueling these companies' meteoric rise. The authors identify four strategies driving this growth: COST LEADERS leverage existing low-cost structures and large-scale volumes to extend their reach into developed markets. KNOWLEDGE LEVERAGERS tap their existing resources and knowledge of home consumers and the market to build branded businesses in other emerging markets. NICHE CUSTOMIZERS combine their cost advantages in manufacturing with newly developed low-cost R&D capabilities to develop customized niche-segment branded offerings in other emerging markets. GLOBAL BRAND BUILDERS use their low-cost manufacturing and R&D capabilities to build branded businesses in developed markets― but limit their focus to specific products and segments through a process of focused innovation. Whether you run an EMNC or a developedmarket company, deep knowledge of the strategies outlined here is an absolute necessity for competing effectively now and in the future. Don't get caught off guard by the "new kids on the block"―because today's EMNCs are determined to be tomorrow's market leaders. Breakthrough strategies for emulating or competing with your newest and toughest threat: innovative companies in emerging-market nations Western organizations are quickly losing influence to emerging market multinationals, as evidenced by such developments as Tata Motors's acquisitions of Land Rover and Jaguar; Lenovo's purchase of IBM's ThinkPad business; HTC's stature as the fourth largest global smartphone manufacturer; Haier's 5% global appliance market share; and LG, Samsung, and Hyundai rise in the automobile, appliance, and consumer electronics market. To help you compete, The New Emerging Market Multinationals outlines the disruptive strategies deployed by emerging-market multinationals (EMNCs) and provides breakthrough strategies for following in their footsteps or beating them at their own game. Amitava Chattopadhyay is the L'Oreal Chaired Professor of Marketing-Innovation and Creativity at INSEAD. Rajeev Batra is the S.S. Kresge Professor of Marketing at the Ross School of Business at the University of Michigan. Aysegul Ozsomer is associate professor of Marketing at Koç University, Istanbul, Turkey. The growth of Emerging Market Multinationals (EMNCs) has been remarkable. In 2005, there were only 44 of them on Fortune’s list of the top global 500 firms; in 2010, there were 113 such companies.10 A look at this 2010 Fortune list makes clear that many of these are companies in businesses deriving in large part from national natural resource endowments such as oil and gas—Gazprom, Sinopec, Petrobras, Pemex—or domestic giants in the heavily regulated telecom or banking sectors, often being “state champion” companies. Such companies are not the subject of this book, for we seek to understand here the stories and lessons of those without such resource or regulatory advantages. The industries to which the firms we studied belong include foods and beverages, personal care, apparel, watches and jewelry, automotive, appliances, consumer electronics, building products, IT services, and consumer services. Renowned Experts In Global Branding And Marketing, The Authors Of The New Emerging-market Multinationals Conducted An In-depth Study Of 39 Emncs To Reveal The Innovative Complete-from-below Strategies And Tactics Fueling These Companies' Meteoric Rise--jacket. Acknowledgments -- Introduction And Overview -- Choosing Consumer Segments And Expanding Internationally -- Strategic Competency Building -- International Expansion Through Acquisitions -- Brand-building Strategies And Road Map -- Building Brand Awareness On Limited Budgets -- Building Perceptions Of High Quality, Leadership,and Trust -- Global Brand Associations And Architecture -- Managing A Global Or Regional Brand -- Key Takeaways. By Rajeev Batra And Amitava Chattopadhyay, And Aysegul Ozsomer. Includes Bibliographical References (p. 303-320) And Index. How have these small, under-resourced businesses come so far so quickly? And what can you learn from their strategies and tactics? This title offers a study of 39 Emerging-Market Multinationals to reveal the compete-from-below strategies and tactics fueling these companies' meteoric rise.