But global challengers will face more obstacles in the years ahead. In addition to slowing economies, they face increasing competition from both their current multinational competitors and new, homegrown rivals: the champions. These champions—nearly 1,500 emerging-market-based companies—may be smaller in size, but they are still highly profitable and fast growing. From 2005 to 2014, their revenues represented 6% of global GDP. Given their current growth rates, we expect many of these champions to become top-ten companies in their sectors by 2020.
In order to graduate to global industry leaders, global challengers and champions must focus on growth, competitiveness, and strategic M&A to build their world-class capabilities.