Every so often I take a look into my electronic library, though I admit it is not nearly as exciting as perusing for hours the book stands "i.e., les Bouquinistes" that are habitually found along the right bank of Seine in Paris. But today, after dusting off the cobwebs, I found an interesting and dated but for me a timely article entitled "What can small businesses learn from emerging markets." A juicy topic to be sure. Allow me to give you just a flavor.
1. Smaller companies from emerging market countries have discovered that you can not only win, but have the advantage over larger companies. It’s just a matter of deploying your resources — however limited they are — very strategically. I can relate to that (past and present) big agenda and miniscule budget so you must be strategic!
2. You can out-compete bigger companies by better tailoring your products to customer needs using your self-owned, lower-cost, and more flexible design and manufacturing resources. Great!
3. Critical to target how you deploy your (limited) resources. These have to be targeted in ways that maximize impact.
4. Go after medium and large businesses before targeting the mass consumer market.
5. In new markets: Underserved, ‘special needs’ market segments also make sense to exploit, because they are often ignored by the larger incumbents.
The big takeaway: Smaller firms can still perform well against much larger competitors. What it requires is a competitive strategy that is fully cognizant of these resource limitations, and finds clever ways to overcome them.
#emergingmarkets #innovation #manufacturing #smallbusinesses