Industry Challenges
Over the past 15 years, multinational companies have entered rapidly developing economies (RDEs) such as Russia and CIS to achieve cost advantages and expand their customer base. In doing so, they have targeted mostly customers at the top of the wealth pyramid. They have failed, however, to extract the full value of their investments.
Today, multinationals find themselves increasingly challenged by RDE-based companies that have entered the global scene and are vying for leadership. Some of those challengers are likely to emerge stronger from the economic-crisis, benefiting from home-market growth, low cost advantage, and opportunistic acquisitions.
Despite a slowdown, RDEs will remain an important growth engine for many multinationals. However, those companies must contend with new growth and competitive dynamics as RDEs respond to the crisis. In addition, leveraging RDEs for cost savings has become more complex in a new global environment in which executives of leading companies are faced with important questions:
How do they reach the next level of profitable growth in RDEs and make the transformation to a globally advantaged company?
Do they have an up-to-date understanding of the growth opportunities, and are they prepared to respond and win in the new operating landscape?
Are they capturing the opportunities these markets offer for cost reduction, and have they developed a network of advantaged positions?
Are they adapting their business models and strategies to challenge-proof their business, and are they sufficiently engaging the challengers as partners and customers?
How well do they orchestrate and coordinate activities across their global positions?
Do they have the right talent pool to support their global ambitions?
If it’s a Russian company, where and how can it expand successfully internationally?
In this new era of global competition the challenges and risks are tremendous. However, the opportunities are limitless.
BCG competencies
The Boston Consulting Group’s Global Advantage practice helps clients achieve global competitive advantage by capturing opportunities arising in and from RDEs. We support industry leaders from developed countries and also fast-growing companies from the RDEs on a wide range of issues to:
Capture growth organically and through partnerships, mergers, and acquisitions
Leverage the advantages of RDEs on a global scale in areas such as research and development, sourcing, production, and business-process offshoring
Engage with strong players emerging from RDEs
Orchestrate a global transformation and prepare organizations for global success
We conduct research on priority topics for business leaders around the world, collaborating closely with BCG’s industry and functional experts.