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10 tricks that companies need to master in the 21st century

companies need to master

10 tricks that companies need to master in the 21st century. Is capitalism dying? No, they say in McKinsey, the greatest growth opportunity loomed before him, which threatens to overshadow the industrial revolution of the 18th century.

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Is capitalism dying? No, they say in McKinsey, the greatest growth opportunity loomed before him, which threatens to overshadow the industrial revolution of the 18th century. By 2025, consumption in the markets of developing countries will reach a hardly imaginable amount of $ 30 trillion. And these 30 trillion should go to someone.

Heads of multinational companies unanimously tell McKinsey that emerging markets are key to long-term success.

That’s just, consultants notice, if you take the 100 largest international companies with a base in developed countries, then only 17% of their income comes from emerging markets, although these markets already account for 36% of global GDP. In other words, they’re not getting enough. #10 tricks that companies need to master in the 21st century

10 tricks that companies need to master in the 21st century

But due to what they are not getting enough – or rather, what needs to be learned in order to fill a sad gap – and the article is told in an article from McKinsey Quarterly with the intriguing title “Winning a $ 30 Billion Decathlon”.

Here are the basic skills and disciplines that, according to McKinsey, entrepreneurs need to learn to win this decathlon:

1. Surgically accurately identify growth clusters in cities. The main opportunities lie in medium-sized cities with unfamiliar names like Ahmedabad and Huambo, which in the next 15 years will generate almost half of the global GDP growth.

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And this means that we must learn to think not on a country scale, but on a city scale, study these cities in depth, unite similar territories into clusters and develop within these clusters.

10 tricks that companies need to master in the 21st century

2. Predict moments of explosive growth. Demand in emerging markets (and everywhere) first goes through the “warm-up” phase, and then the “hot zone”, when many buyers have money for a product or service.

Therefore, it is important to guess the “hot” phases in time, and for this it is necessary to carefully study demography, culture, technological development and so on.

3. Develop different segmentation strategies locally and globally. In other words, to determine how much the product needs to be adjusted to local needs, tastes and characteristics of consumers, and whether it is possible to find similar consumers in the markets of different countries in order to save on this adjustment.

10 tricks that companies need to master in the 21st century

4. Radically redistribute business resources. To win in emerging markets, you need to be prepared for big and quick changes, especially given that local competitors are already growing very fast: they are designed to make decisions and change faster than others. Although you can buy these competitors, Danone bought Unimilk in Russia.

5. To come up with innovative solutions in different price segments. In emerging markets, you can sometimes create more interesting and breakthrough solutions from scratch than those that the company offers in its own developed country. That is why many large corporations are now opening research centers in India.

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6. Build brands that evoke an emotional response and trust. Here it seems to be obvious: consumers in emerging markets are different from consumers in the developed West, which means they need their own brands.

10 tricks that companies need to master in the 21st century

But what is the difference? Firstly, they are younger, and secondly – many products are just appearing on their market, they are unfamiliar with them, thirdly, they quickly improve their quality of life, and fourthly, they are not so loyal to the available ones brands. Yes, and they have their own ways of getting to know brands.

10 tricks that companies need to master in the 21st century

7. Control the way to the market. Do not trust all distributors and retailers! We need to infiltrate the stores ourselves and actively promote goods there. Distributors will often have to give up – intermediaries in these markets take away margins, and they are not always able to handle goods.

True, the matter is complicated by the fact that the bulk of these goods are sold and will be sold in local small shops, which are much more inconvenient to communicate with than with large chains.

10 tricks that companies need to master in the 21st century

8. Get ready for tomorrow’s markets. Strategic planning in companies today suffers greatly: it is too difficult to think about everything at once on an international scale. And the farther, the harder it is. This means that it is necessary to simplify processes, rebuild their structures, including moving many management functions closer to those countries in which the company operates.

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9. Take seriously for personnel from emerging markets. There are plenty of unskilled workers, but skilled workers are in short supply and take advantage of this, often changing jobs and knocking out high salaries. Moreover, local companies are pulling them to themselves, offering higher posts.

10 tricks that companies need to master in the 21st century

That is, you can’t fill this hole with money, you need to carefully consider what the company can offer exactly to local employees, what it can be especially valuable for – in general, to develop an “internal” brand, and at the same time more and more actively comb the local market in search of people.

10. Seek support from stakeholders. That is, to negotiate with local officials, the public and the media, as well as local entrepreneurs. Including doing the most commonplace things – going to meetings and conferences, sitting on advisory boards, proposing your own bills, etc. It’s corny — but it works.

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