In their quest for new sources of profitable growth, companies are increasingly shifting their focus towards lesser known but fast growing second tier emerging markets like Vietnam, Indonesia, Nigeria, Angola or the rapidly growing second tier cities of India and China. These markets may not match the larger, tier one emerging markets (Brazil, Russia, India and China) in terms of size, but they are growing at a tremendous pace.
However, while growth opportunities are significant, investing in these markets can be equally challenging. Developing an entry strategy in new growth emerging markets is by no means a one-size-fits-all exercise. It needs to be tailored to each particular market and to take into account business-related factors but also tax, regulatory and legal differences. Ultimately, success or failure is determined by firms' capacity to understand the market, by their experience and international expertise and by the level of resource commitment they are prepared to make.
Deloitte has developed a framework which helps companies decide the best strategy to enter or grow in second tier emerging markets. Seeking advice upfront can help you grow your business by helping you understand what entry strategy best suits your company and how you can best position yourself in these markets, gain a competitive advantage and mitigate risks.
Interested in discussing how Deloitte can help your company leverage new growth opportunities in second tier emerging markets? Just contact:
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