How to Use a Fishbone Diagram
The fishbone diagram, which also goes by a couple of other names like the Cause and effect diagram and the Ishikawa diagram is one of the seven basic tools of quality management. It has wide ranging applications in almost all six sigma projects. The Fishbone diagram is a simple but highly effective tool in problem […]
The Economics of E-Waste
The modern human society is hooked on electronic devices. As a result, there is an ever-increasing stream of televisions, computer screens, mobile phones, and cameras which are being thrown out since consumers want to upgrade to a newer version. This is generating a new type of waste called e-waste or electronic waste. In this article, […]
Linearity and Resolution
Apart from accuracy and precision, there are more factors that determine the soundness of a measurement system. Two of these important factors are as follows: Resolution: Resolution is the ability to see fine details in a system. This ability also gives the system, the ability to distinguish different readings from one another. A good example […]
The Chinese Internet Story
Chinese firms were seldom thought of being anything apart from copies of their western counterparts. The snobbish inhabitants of Silicon Valley never thought that these companies would amount to much. However, the reality has become very different. China today has about 25% of the world’s unicorns i.e. tech startups with a valuation greater than $1 […]
How Sports Became Big Business and Its Implications for All Stakeholders
How Sports Became Big Business Nowadays, sports mean big bucks for all stakeholders. Whether they are sportspersons, corporates, advertisers, or the sports bodies tasked with administering the game, all of them stand to gain from the infusion of Million Dollar deals that have become the norm rather than the exception. Indeed, the move to make […]
Studies have shown that the number of cities in emerging markets is growing. Now, there are nearly 700 emerging market cities with populations of more than half a million and this number is expected to grow in the years ahead.
The proliferation of Tier II cities alongside the megacities is perhaps the biggest noticeable trend in recent years. It has been estimated that nearly 1.2 million people move to the cities every week. This means that over the next twenty years, there would be a net migration of around 1.4 Billion to the cities in the emerging markets.
Since the megacities would not be able to hold all these people, most of the growth would come from the next rung of cities or the Tier II cities where the rapidly urbanizing populations would aspire to western standards of living and hence, their consumption patterns would be lucrative for multinationals and international businesses seeking to enter these markets.
It has been estimated that about 125 Million Households would enter the middle class in emerging market cities between 2010 and 2025. This means that international businesses ought to be prepared to deal with these consumers.
As a recent book put it, the $10 Trillion Prize that is up for grabs in the emerging markets means that the opportunities are there for the asking for international businesses.
However, the challenge before international businesses is that they would have to completely redraw their business models and rework their strategies because of the complexity of the consumer base that is emerging in these markets.
For instance, a recent survey has revealed that only 13 percent of international businesses are ready for the growth in the emerging market cities whereas a large number of them (around 73 percent) say that they are cognizant of the growth potential in these emerging markets.
Companies like Yum! Foods which is the owner of the KFC and Pizza Hut Brands has adapted itself to the Chinese market and has tripled its market share by targeting the local consumers and offering them menu choices that are more palatable to their tastes.
Further, international businesses must be cognizant of the logistical and distributional challenges that are peculiar to emerging markets apart from their branding and marketing activities.
Apart from this, the international businesses have to contend with smaller players who are nimble and agile and what are known as “mom and pop” stores. For instance, the Chinese and the Indian markets are dominated by the Kirana and the local groceries and international businesses should price their products and reorient their strategies accordingly.
The point here is that the hybrid consumer and business landscape ought to be targeted accordingly and the complexity of the strategy must reflect this aspect.
In conclusion, emerging markets represent an opportunity that is there for the taking and hence, the international businesses must seize this chance to expand their operations and grab a share of the large pie that is available.
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Cross Border Mergers and Acquisitions and Some Recent Trends in this Field
February 12, 2025
