Tuesday, June 24, 2008

strategies with Which Local Companies are Beating MNCs

How Local Companies Keep Multinationals AT BAY.
By: Bhattacharya, Arindam K., Michael, David C.,
Harvard Business Review,
March 2008, Vol. 86, Issue 3

In many emerging countries, after liberalization and entry of global companies, local companies have staved off challenges from multinational corporations in their core businesses, have become market leaders or are catching up with them, and have often seized new opportunities before foreign players could. Many of them dominate the market today not because of protectionist economic policies, but because of their strategies and execution.

A Six-Part Strategy used for Success

Create customized products or services.

Develop business models to overcome key obstacles present in emerging economies

Deploy the latest technologies

Take advantage of low-cost labor, and train staff in-house

Scale up quickly

Invest in talent to sustain rapid growth

Many companies pursue one or the other of the success strategies just described. What distinguishes winners is their ability to pursue several, or often all, of them simultaneously and to execute them well.

Arindam K. Bhattacharya (bhattacharya.arindam@bcg.com) is a Delhi-based partner and managing director, and David C. Michael (michael.david@bcg.com) is a Beijing-based senior partner and managing director, of the Boston Consulting Group.

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