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New Business Models In Emerging Markets. by Matthew J. Eyring, Mark W.…
New Business Models In Emerging Markets. by Matthew J. Eyring, Mark W. Johnson, and Hari Nair
Targeting the middle market can be lucrative— but companies won’t be able to deliver unless
they start from scratch.
Right now more than 20,000 multinationals are operating in emerging economies.
According to the Economist, Western multinationals expect to find 70% of their future growth there—40% of it in China
and India alone.
the Economist wrote, “The only way that companies can prosper in these markets is to cut costs relentlessly and accept profi t margins close to zero.”
Challenge for new business emerging have been struggled not because they can’t create viable offerings but because they get their business models wrong.
Author presents a business model innovation and implementation process “Reinventing Your Business Model,” HBR December 2008, and “Beating the Odds When You Launch a New Venture,” HBR May 2010.
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Start in the middle
Companies that devise new business models and offerings to better meet those consumers’ needs affordably will discover enormous opportunities for growth.
Living with semiurban and rural people you can fing an opportunity to create a fundamentally new product for the underserved middle market.
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Integrate the Elements
The approach of the business model proposal in this paper focuses on the basics and also
on factors that make it difficult to move from an existing model to a new one—margin requirements, overhead, and “resource velocity” (the capacity to generate a given volume of business within a specific time frame).
It has four parts: the customer value proposition, a profit formula, key processes, and key resources the company must use to deliver the CVP repeatedly and at scale
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