the mandate of global presence

New Blue Canyon research asserts that emerging markets are the battleground on which future global leadership will be determined. Over the next decade, emerging markets will contribute most of the world’s growth, competition, and innovation.

The consequences of this challenging business environment demand attention. To prepare for the future it is essential to:

Get in the trenches in emerging economies – firms that aren’t positioned effectively in these markets will be left behind

• From 1994 to1999, the US, EU, and Japan accounted for 2/3 of global growth. Just a few years from now, between 2014 and 2019, emerging markets are expected to make up 70% of global growth, with China alone accounting for 1/3 of the world’s growth. To reap the rewards of this growth, your company must serve mainstream market segments in emerging markets; a beachhead presence at the “Best” end of the product and customer spectrum is not enough.

Recognize threats – competitors will emerge from unlikely places

• The recent recession has taught many companies that low cost firms headquartered in emerging markets can become serious competition. That lesson is likely to be compounded in the future, as competitors from emerging markets combine their low cost competencies with new approaches to customer relationships, a willingness to abandon conventional technology, strong support from their governments, and contributions from developed country suppliers whose ingredients create credibility and overcome technical barriers.

Be aware of upcoming game-changers–innovations that originate in emerging markets will eventually reach and dominate global market decisions

• Emerging markets provide an environment that allows disruptive technologies the opportunity to achieve economies of scale, profitability, and product maturity in a fraction of the time that these processes would take in a mature market. Developments that come from emerging markets will lead to breaks from current paradigms, rendering existing products, rules, and sales channels largely irrelevant.

These concepts and explicit suggestions for how firms can succeed in the changing global environment are developed in more detail in the new Blue Canyon research paper titled The Mandate of Global Presence. To get a copy of this publication, email Blue Canyon Partners at newsletters@bluecanyonpartners.com. There are also numerous research papers available for immediate download at www.bluecanyonpartners.com.