Problematique

Seung Ho Park, Gerardo R. Ungson and Andrew Cosgrove

Chapter 3 in Scaling the Tail: Managing Profitable Growth in Emerging Markets, 2015, pp 20-29 from Palgrave Macmillan

Abstract: Abstract Historically, scaling for mass markets worked when emerging markets were characterized as low-cost-sourcing destinations, when commodities were the end product, and when local competition was insignificant. In the current environment, affluent middle-class sectors in emerging markets are found to have different consumption patterns, tend to be more brand-conscious, but can also be less secure in their preferences. Local competitors have bolstered their abilities to attend to these segments. Without changing mindsets, MNCs have experienced difficulties in mass merchandising strategies in emerging markets. Using illustrations and case studies, the chapter discusses inflection points that depict a shift from cost-driven to demand-enhancing competition. Instead of a logic based on mass manufacturing, attention has been directed at entering propitious market niches based on broad differentiation strategies.

Keywords: Middle Class; Mass Market; Local Competition; Mass Consumption; Local Competitor (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-53859-8_3

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DOI: 10.1057/9781137538598_3

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