Developing new products for emerging markets: a competency based approach

Emerging markets as represented by BRIC (Brazil, Russia, India and China) countries signify an enormous growth opportunity and a "must win" market for MNCs (multinational companies). It is estimated that by 2013, the middle class in BRIC countries will be larger than the population of Western Europe, USA and Japan combined. For companies focusing on developing new products, emerging markets represent a large and potentially attractive new customer base. Unfortunately, MNCs are strategically disadvantaged in developing new products for the emerging markets. Compared to developed markets, emerging markets have significant geographical, economic, social, culture, infrastructure and governmental differences. The problem is exacerbated as MNCs continue to rely on predictable business models that have been built on years of experience in developed markets. To become a market leader, MNCs must seriously challenge their existing business model and strategic framework to address the nuances of emerging markets. BRIC should be viewed through a different lens and the deeply embedded values, processes and resources modified to win in emerging markets.