Challenges
Over the past 15 years, multinational companies have entered rapidly developing economies (RDEs) to achieve cost advantages and expand their customer base—mainly targeting customers at the top of the wealth pyramid. They have not, however, extracted the full value of their investments.
Today, multinationals find themselves increasingly challenged by RDE-based companies entering the global scene and vying for leadership. And some of the challengers are likely to emerge stronger post-economic-crisis, benefiting from their home market growth, low-cost advantage, and opportunistic acquisitions.
Despite their slowdown, the RDEs will remain an important growth engine for many multinationals. But companies will need to contend with a new set of growth and competitive dynamics as the RDEs respond to the crisis. At the same time, leveraging the RDEs for cost savings has become more complex in the new global environment.
In this environment, senior executives of leading companies face some important questions:
How do we get to the next level of profitable growth in RDEs and make the transformation to become a globally advantaged company?
Do we have an up-to-date understanding of the growth opportunities here? Are we prepared to respond and win in the new operating landscape?
Are we capturing the opportunities these markets offer for cost reduction? Have we developed a network of advantaged positions?
Are we adapting our business models and strategies to “challenger-proof” our business? Are we sufficiently engaging the challengers as partners and customers?
How well are we orchestrating and coordinating activities across our global positions?
Do we have the right global talent pool to support our global ambitions?
The challenges and risks are tremendous. But the opportunities are limitless in the new era of global competition.
BCG Competencies
BCG’s Global Advantage practice helps clients achieve global competitive advantage by capturing opportunities arising in and from the RDEs. We support both industry leaders from developed countries and fast-growing companies from the RDEs on a wide range of issues:
Capturing growth organically and through partnerships, mergers, and acquisitions
Leveraging the advantages of RDEs on a global scale, in areas such as R&D, sourcing, production, and business-process offshoring
Engaging with the emerging strong players from the RDEs
Orchestrating a global transformation and enabling the organization for global success
Collaborating closely with BCG’s industry and functional experts, we regularly conduct research on topics that are priorities for business leaders around the world.