The BCG 50 Local Dynamos: How Dynamic RDE-Based Companies Are Mastering Their Home Markets—and What MNCs Need to Learn from Them
A new phenomenon is taking place in rapidly developing economies (RDEs) around the world: in industry after industry, multinational companies (MNCs) entering these markets are finding themselves facing very strong homegrown competitors. These dynamic local companies are proving fiercely competitive, and many are dominating their markets. For instance, Focus Media took just four years to become the largest outdoor-advertising company in China, with a 95 percent market share. And in Brazil, Grupo Positivo has won a larger share of the PC market than Dell and Hewlett-Packard combined.
These local dynamos, unlike the RDE-based companies we recently discussed in The 2008 BCG 100 New Global Challengers, have not gone global—yet. But they have come up with ingenious new business models that combine the intrinsic advantages they have in their home markets with cutting-edge technologies and advanced business practices. Most important, they share a genius for converting market conditions that most MNCs would see as obstacles into opportunities. The authors of this report discuss 50 companies that they and the BCG research team have selected as representative of the broad phenomenon of rising local dynamos. They also identify the six success factors that distinguish dynamos from their less effective peers. And they suggest some important lessons that MNCs can learn from the dynamos' example.