What strategy should companies use to develop their products and services on emerging markets? Innovation, obviously, or so say the majority of the executives across corporate boards. BusinessWeek published an article (click here to read) with a preview of a study by Delloit titled “Innovation in Emerging Markets”.
The survey was conducted by interviewing over 400 executives about the practices of their companies in such emerging markets, and the focus of the study was on retaining talent, managging risks and operational structures.
Here are some takeways from the survey:
- Intellectual property is one of the most important factors when judging the risk
- Regulatory risks are next on the list of concerns
- Overall less than 50% of the executives declared that they are successful at meeting revenue goals on emerging countries
- Greenfield investments in increasingly becoming the choice for an entrance strategy