Have you ever wondered what advantages local firms in emerging markets – like Latin America – have over their large resource-rich multinational competitors? There’s a great piece (written by John Jullens) that I discovered today in Strategy+Business magazine and it builds the case for strategy (and not just implementation) when doing business in/with/from emerging markets.
In relation to my business and the work of Hipona Consulting, I found the following particularly interesting:
…Local firms are far better at overcoming such voids than multinationals, not because they’ve somehow developed a superior operating model but simply because they’re often still run by their founder‒¬¬entrepreneurs: well-connected industry veterans who are adept at finding practical work-around solutions and still make most important decisions by themselves. In contrast, multinationals lack the local market understanding and personal relationships with government officials and other stakeholders, and are often hindered by their own time-consuming global decision-making processes.
That’s what Hipona Consulting does – it bridges the “either or” scenario. Hipona fosters collaboration between the entrepreneur, “well conected industry veterans”, emerging markets and the larger (international) organizations. All can then benefit from 1) resources and international expertise 2) practical work around solutions and 3) solid knowledge of Latin American (emerging!) markets.