Tag Archives: emerging markets

On Maneuver…

In international business, like in politics, local guides or experts are key to obtaining advantages in new markets. Here, two excerpts from the Art of War:

Sun Tzu:

Those who do not use local guides are unable to obtain the advantages of the ground.

Li Chang:

We should select the bravest officers and those who are most intelligent and keen, and using local guides, secretly traverse mountain and forest noiselessly and concealing our traces…we concentrate our wits so that we may snatch an opportunity.

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Local firms and multinationals in emerging (LatAm) markets

5611309-map-of-latin-america

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.

EMC

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