The New Emerging Market Multinationals: Four Strategies for Disrupting Markets and Building Brands [Hardcover]

Amitava Chattopadhyay (Author), Rajeev Batra (Author), Aysegul Ozsomer (Author)

Book Description

Publication Date: May 18, 2012

Praise for THE NEW EMERGING-MARKET MULTINATIONALS

One of Strategy and Business’s Best Business Books of the Year

"This book is a real eye-opener. It will forever change your assumptions about international economic competition and who the winners will be."
—PHILIP KOTLER Kellogg School of Management and author of Winning at Innovation

"An insightful read—essential for those wishing to understand the evolution and growth of emerging-economy EMNCs and how they will reshape global market structures."
—ANAND MAHINDRA, Vice Chairman and Managing Director, Mahindra Group, India

"As this timely book so insightfully points out, the rise of emerging-market multinationals is shifting the global competitive landscape and forcing us to think hard about new growth, strategy, and talent equations. A must-read for business leaders responsible for navigating today's global environment.
—MUHTAR KENT, Chairman and Chief Executive Officer, The Coca-Cola Company

"This book offers an array of fascinating examples and an interesting framework for stimulating thinking about EMNCs' strategic options."
—PANKAJ GHEMAWAT, IESE Business School, and author of World 3.0

"A must-read. The book is well researched and provides compelling case illustrations. I highly recommend it."
—W. CHAN KIM, Professor, INSEAD; Codirector, INSEAD Blue Ocean Strategy Institute; and bestselling author of Blue Ocean Strategy

"This is the future of global competition. You need to understand it if you aspire to be a player or if global markets are now a part of your strategy."
—DAVID A. AAKER, Vice Chairman, Prophet, and bestselling author of Brand Relevance

"This book gives a clear idea of the success formula of emerging-market multinationals by showing practical insights based on a deep understanding of EMNCs. This will help readers from any type of company structure their own growth strategies."
—WONHONG CHO, Executive Vice President and Chief Marketing Officer, Hyundai Motor Company

"An excellent collection of ideas and examples that should inspire companies in emerging markets looking to build brands and markets anywhere."
—BUSINESSWORLD

About the Book:

LG. HTC. Tata. Haier. Lenovo. Arcelik. Natura.

From smartphones and computers to blue jeans and beer, companies from China, India, Taiwan, Mexico, Turkey, and other emerging markets are now winning leading market shares with their own-branded, high-quality products—rather than with poorly produced products sold under others' brand names. These emerging-market multinational companies (EMNCs) are giving the incumbent market leaders of North America, Western Europe, and Japan a run for their money in the areas of innovation, branding, and marketing.

How have these small, under-resourced businesses come so far so quickly? And what can you learn from their strategies and tactics?

Renowned experts in global branding and marketing, the authors of The New Emerging-Market Multinationals conducted an in-depth study of 39 EMNCs to reveal the innovative compete-from-below strategies and tactics fueling these companies' meteoric rise. The authors identify four strategies driving this growth:

• COST LEADERS leverage existing low-cost structures and large-scale volumes to extend their reach into developed markets.
• KNOWLEDGE LEVERAGERS tap their existing resources and knowledge of home consumers and the market to build branded businesses in other emerging markets.
• NICHE CUSTOMIZERS combine their cost advantages in manufacturing with newly developed low-cost R&D capabilities to develop customized niche-segment branded offerings in other emerging markets.
• GLOBAL BRAND BUILDERS use their low-cost manufacturing and R&D capabilities to build branded businesses in developed markets— but limit their focus to specific products and segments through a process of focused innovation.

Whether you run an EMNC or a developedmarket company, deep knowledge of the strategies outlined here is an absolute necessity for competing effectively now and in the future. Don't get caught off guard by the "new kids on the block"—because today's EMNCs are determined to be tomorrow's market leaders.

Editorial Reviews

Review

"Only four emerging-market brands make Interbrand's list of the world's 100 most valuable: Samsung and Hyundai of South Korea, Mexico's Corona beer and Taiwan's HTC.
How can others make the leap? "The New Emerging-Market Multinationals", a book by Amitava Chattopadhyay, of INSEAD, and Rajeev Batra, of the University of Michigan's Ross School of Business, offers some clues."--The Economist

"When I was in China several years ago, I felt that the firms there would eventually become leading global players. And now it's happening, and a new book, The New Emerging Marketing Multinationals by Amitava Chattopadhyay and Rajeev Batra (with Aysegul Ozsomer) explains how... This is the future, and this study provides an early view of what the winning competitors are doing and will continue to do."--David Aaker, Vice-Chairman, Prophet, in his blog, Aaker on Brands.

"this book is most gratifying because when a dark horse succeeds, it gives our inner dark horse hope that we too can get there"--Business Standard

"Un livre récent, The New Emerging Market Multinationals (Les nouvelles multinationales des marchés émergents, Editions McGraw Hill), devrait aider ces marques à rectifier le tir"--Le Monde

"This book gives deep insight into the new models and ways of doing business that are emerging from these new markets that will shape globalization, both in the new and the traditional marketplaces."--Jochen Zaumseil, Executive Vice President Asia Pacific Zone and Member of the L'Oréal Group  Management Committee

About the Author

AMITAVA CHATTOPADHYAY is the L’Oréal Chaired Professor of Marketing-Innovation and Creativity at INSEAD. He has served as a branding consultant for firms in the Americas, Asia, Africa, and Europe.
RAJEEV BATRA is the S.S. Kresge Professor of Marketing at the Ross School of Business at the University of Michigan. He has researched, taught, and consulted on global branding, emerging markets, and marketing topics for 30 years.
AYSEGUL OZSOMER is an associate professor of marketing at Koç University, Istanbul, Turkey. Her research focuses on standardization-adaptation issues and performance implications, market orientation, and global brand management.

Product Details

• Hardcover: 320 pages
• Publisher: McGraw-Hill; 1 edition (May 18, 2012)
• Language: English
• ISBN-10: 0071782893
• ISBN-13: 978-0071782890
• Product Dimensions: 6.2 x 1.2 x 9.3 inches
• Shipping Weight: 1.5 pounds (View shipping rates and policies)
• Average Customer Review: 5.0 out of 5 stars  See all reviews (14 customer reviews)
• Amazon Best Sellers Rank: #90,868 in Books (See Top 100 in Books)
  • #24 in Books > Business & Investing > International > Global Marketing
  • #26 in Books > Business & Investing > Management & Leadership > Strategy & Competition

Most Helpful Customer Reviews

4 of 4 people found the following review helpful

5.0 out of 5 stars Full of great insights for both Marketing and Strategy... June 12, 2012

By Jasjit Singh

Format:Hardcover

This book is full of great insights and very practical frameworks related to both Marketing and Strategy in the cross-border context. These are very nicely integrated with and illustrated using rich and current examples based on interviews with a large number of companies headed to be among top global leaders for the future.

The authors stress the need to take a long-term strategic view, finding the right balance between applying one's current competitive advantages to succeed today and building long-term advantages to become a global leader in the future. The authors emphasize how, rather than just copying what their developed market counterparts do, emerging market companies can turn their contextual disadvantage into advantage by analyzing unique resources and capabilities arising from their context-specific experience. This analysis should form the basis of what their company ought to choose as its business scope and strategy globally. Also, by taking a long-term view rather than just being content with short-term gains, these companies can invest in building the right resources and capabilities to move into higher-value activities in the value chain (such as branding) rather than being destined to be underdogs forever.

The book is a must-read for both emerging market company managers looking to take on big companies is the global arena as well as for global company managers trying to figure out how to best defend against disruptive innovatiosn and business models emerging from this new breed of unfamiliar competitors!

3 of 3 people found the following review helpful

5.0 out of 5 stars full of original insights June 12, 2012

By Haiyang Yang

Format:Hardcover

This is no doubt one of the best books on branding and emerging markets I've read in many years. I enjoyed reading it very much. Unlike the other books (that usually just repackage the same old branding stuff with a little bit of new content), this one is very ORIGINAL--it derives insights from actual interviews with executives who are running the brands at the frontline and from the in-depth, critical analyses by the authors. Reading it was quite an eye-opening experience for me.

I would say this is a must-read for anyone who is interested in branding or marketing. The book goes beyond illustrating why and how new brands from emerging countries can challenge the established brands of the developed world. It also suggests how the latter can be prepared for such challenge. I really like this book.

2 of 2 people found the following review helpful

5.0 out of 5 stars The Brands of the Future July 8, 2012

By J. Johansson

Format:Hardcover

This is a bellwether book. It introduces the reader to the up-and-coming global brands that we may never heard of before but surely will in the not too distant future. Infosys and Lenovo and even Haier from China will be known to some, as will Infosys, Tata and Wipro from India, LG from Korea, Arçelik from Turkey and Natura from Brazil. But here you also get to know many new brands such as India's Godrej , Mahindra and Marico, Taiwan's HTC, Turkey's Mavi and Ulker, and Saudi Arabia's Savola foods, all famous household names in their home countries - and soon the world.
The authors in this welcome book on third-world MNCs take an in-depth look at 39 emerging multinationals and emerge with a challenge not only for lower-achieving emerging firms but also for established triad MNCs. Based on personal interviews, they clarify the strategies of the successful new competitors. They then develop a blueprint adaptable to any new entry or startup company, equally useful in emerging and developed economies.
Four different expansion strategies for emerging MNCs are identified, viz. Cost Leadership, Knowledge Leveragers, Niche Customizers and Global Brand Builders. While cost leadership is the traditional avenue to growth (with low wages), knowledge leveragers have only recently been recognized - the superior customization of emerging companies to the special demands at the "bottom of the pyramid."
But according to the authors the real action is now shifting to more ambitious managerial strategies. "Niche customizers" are emerging MNCs that become leaders in some sub-category segments where their products help create a new market. Haier's wine-coolers and compact refrigerators are cases in point. But the emerging MNCs are now becoming avid global brand builders as well, whether by acquisition (Lenovo, Tata) of by promotion of their existing brands (HTC, Mavi, Mahindra).
Naturally, this book is a must for professionals interested in emerging markets and learning about future competitors. But its appeal is broader than that. In today's Apple-obsessed world, it is good to remember the small start-up in a Palo Alto garage - and how quickly it came from behind to reinvent and overtake whole markets. Many of today's aspiring entrepreneurs can be found outside of Silicon Valley, even outside the U.S. Many also come from foreign countries - the same countries that now spawn their own entrepreneurs. This book helps you understand some of the best among them, and get a glimpse of the future.