CoDestiny

Future Competition From Emerging Markets

Monday, November 22, 2010 - Permalink
During the recent recession, many companies turned to low cost suppliers that hadn’t previously “made the cut” simply because of the economics of the time – they couldn’t afford more traditional and established suppliers.  This is a classic example of competition “from below.”  And the classic outcome has occurred in many instances – namely, the supplier figured out how to measure up to the expectations.  Those low-cost suppliers are now part of the permanent competitive picture.

This lesson is valuable when thinking about the emergence of competitors from emerging markets.  Their history may be rooted in serving customer segments whose purchase decisions are driven by price, but their future will involve entering mainstream markets.  Our colleague David Hartman has written a new research paper titled The Mandate of Global Presence, in which he argues that most of the competition in the future will originate in emerging markets.  You can download this paper in .pdf format from www.bluecanyonpartners.com on the Publications page.

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