Most global companies see a presence in Emerging Markets as a necessity to their future success, and aim to build markets and gain global market share. It has become less about capturing lower production costs.
In the Business Perspectives for Emerging Markets 2012-2017 Report from GIA, 431 large and mid-sized companies reveal their true goals and intentions.
- 70% say they want to gain a foothold for long term success
- 51% say they were keen to gain global market share
- 4 out of 10 have followed their customers to Emerging Markets
- A third are looking for growth outside established markets with lackluster growth and profits
- 1 out of 4 are keen to diversify their risks, as well as tap into short to medium term profits
and growth
- Only 17% said it was to lower supply costs
Many still favor BRIC countries as their top focus between 2012 and 2017, with similar emphasis on individual markets across 10 industries; Manufacturing & Industrial; Telecommunication, Technology & Media; Professional & Business Services; Financial Services; Consumer & Retail; Pharmaceuticals & Healthcare; Energy, Resources & Environment; Automotive; Chemicals; Logistics & Transportation. (see chart above).
However, 91% admit to wanting to have done things differently in their Emerging Market strategies. The main regrets are not adapting more to local conditions, not entering sooner and not acquiring better market intelligence.
Over half say that information on Emerging Markets is not readily available in their organizations, with three out of four doubting the accuracy and completeness of the information that they do have.
Download the Business Perspectives for Emerging Markets 2012-2017 Report (Global Results) from GIA, to find out how companies say they will tackle Emerging Markets and what they see as the success factors and threats for their individual industries, in our wide ranging Emerging Markets survey.
Country Reports: Global | Benelux | Brazil | Germany | UK | USA | South Africa
Industry Reports: Manufacturing & Industrial | Pharmaceutical & Healthcare | Telecommunications, Technology & Media | Consumer & Retail
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About the Business Perspectives for Emerging Markets 2012-2017 ReportIn April-May 2012, GIA conducted an online survey amongst business managers at 431 large and mid-sized companies and organizations worldwide, with questions such as:
- How do you define Emerging Markets in your company?
Which are the top Emerging Markets for your industry over the next five years?
What key factors will determine whether foreign companies succeed in Emerging Markets?
What are the biggest threats to succeeding in Emerging Markets?
What are your company¡¯s main reasons for investing in Emerging Markets?
What share of your company¡¯s global revenue do you expect to come from Emerging Markets?
Which one aspect of your Emerging Markets strategy would you go back and change if you could?
Industries covered include: Manufacturing & Industrial; Telecommunication, Technology & Media; Professional & Business Services; Financial Services; Consumer & Retail; Pharmaceuticals & Healthcare; Energy, Resources & Environment; Automotive; Chemicals; Logistics & Transportation.
Respondents: Nearly half (42%) of the companies in the survey earned more than $1.3 billion (1 billion Euro) in annual revenue and more than 50% (58%) have more than 1,000 employees. The respondents¡¯ job functions included strategic planning/business development (26%), market/competitive intelligence (23%), senior management (19%), sales and marketing (13%), research and development/product management (9%), among others.
Read more: http://www.globalintelligence.com/insights-analysis/emerging-markets/#ixzz2PaFAZjqJ