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How Local Companies Keep Multinationals at Bay

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This article includes a one-page preview that quickly summarizes the key ideas and provides an overview of how the concepts work in practice along with suggestions for further reading. A substantial number of local companies in emerging markets have managed to hold their own--or better--in the face of competition from global Goliaths. Bhattacharya and Michael of the Boston Consulting Group show how these domestic Davids have achieved that impressive feat. The secret is to adopt most, if not all, elements of a six-part strategy. One, the homegrown winners customize products and services to meet local needs and initially go after economies of scope. Two, they develop business models to overcome market-specific obstacles and gain competitive advantage in the process. Three, they create or buy the latest technologies and use them effectively. Four, they find ways to benefit from low-cost labor and train workers in-house to overcome shortages of skilled employees. Five, they scale quickly by going national before regional rivals can challenge them. Six, they invest in top management talent in order to sustain rapid growth. No element on its own is groundbreaking, but in the aggregate the strategy is a potent one, as the authors illustrate with the story of Ctrip, China's largest online travel agent. Successful as homegrown champions have been--and this article identifies 50 of them--a few multinationals, such as Yum Brands, Nokia, and Hyundai, have managed to beat the locals at their own game by using the six-part strategy. Global companies would do well to study these models of achievement and, armed with acquired wisdom, rethink their own strategies before local rivals shut them out of lucrative emerging markets.

【書誌情報】

ページ数:20ページ

サイズ:A4

商品番号:HBSP-R0803F

発行日:2008/3/1

登録日:2012/3/28

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