Businesses operating in emerging markets must identify what competitive assets make their businesses distinctive. Local managers may have access to government officials that global competitors don’t, or produce uniquely efficient production methods which cannot be duplicated.
Economic growth in many developing nations exceeds that of fully developed economies; however, during the COVID-19 pandemic this advantage was moderated and in some areas lost.
1. Expand Your Research to Foreign Markets
Many corporations make mistakes when expanding internationally, selecting unsuitable countries or employing inappropriate globalization strategies. Companies sometimes enter new lands based on senior managers’ personal experiences, family connections or anecdotal evidence; others follow customers and rivals into emerging markets.
Are You Expanding to Foreign Countries? Step One is Conducting Industry Research
Emerging markets present many business opportunities for both advanced and developing economies. Emerging markets feature higher risk/return premiums compared to more-established economies and are growing quickly as industrialization increases per capita incomes. Unfortunately, emerging markets also present potential obstacles, including political instability, external price volatility, supply/demand shocks arising from natural calamities as well as weaker legal frameworks to deal with corporate bankruptcies.
2. Utilize Data Sources
Locating and interpreting relevant information can be difficult in today’s data-driven world, and getting the most from your information sources requires both intuition and expertise from subject matter experts. From questionnaires, surveys, interviews or secondary data sources such as publications or APIs; getting hold of appropriate data can help identify problems within your organization while opening new avenues of financial support such as venture capital to exchange-traded funds which allow your business to expand into unchartered markets with potential rewards well worth any risks taken on by expanding.
3. Look for Trends in Technology
Staying abreast of trends in your industry can help keep you ahead of competitors, but it’s crucial that you know which are worth pursuing and which are just passing fads.
Economic relevance and internal know-how play an essential role in shaping the development of new technology, encouraging its adoption by consumers. A robust economy encourages them to purchase high-tech devices like smartphones and laptops while weak economies may force people away from investing in these gadgets and force them to seek alternative ways of communication and collaboration.
Furthermore, market infrastructure varies significantly across nations; some emerging markets feature experienced market intermediaries and effective contract enforcement systems while others do not have these advantages. American businesses that do not develop strategies in developing countries risk being outdone by foreign competitors with lower costs and innovative business models.
4. Look for Trends in Social Media
Staying abreast of ever-evolving digital marketing trends can be difficult. Luckily, there are ways you can stay aware of emerging trends and help your brand stay ahead of its competition.
Trends are developments that affect an industry or consumer behavior in some way; for instance, new technologies or consumer preferences. Trends differ from fads which tend to come and go quickly without lasting consequences for businesses.
Social media provides an effective way of staying abreast of emerging industries. Many platforms offer dedicated sections covering top trends, politics, science and tech advancements, sports news and entertainment – as well as personalized trend sections which display stories based on your past interaction with them.
Reddit provides another excellent place to spot trends; their “Trending Now” section lists the hottest topics and categories. You can also use social listening tools to track keywords, brands, and hashtags; this way you’ll have an eye for what’s happening across multiple platforms as well as identify opportunities for your business.