In Pursuit of Profitable Growth
Restructuring an operating model for emerging markets
Emerging markets provide significant opportunities for improved business performance and growth. But in order to be effective, established companies must tailor their operating models to the unique requirements of emerging markets. After all, emerging markets are fundamentally different than mature markets due to:
- faster growth rates
- highly fragmented markets and supply chains
- greater income disparity across economic classes and geographic regions
- inconsistent business and regulatory infrastructures
These special factors require a different kind of operating model, including different approaches to product development, product supply and go-to-market.
The first article in our three-part series about operating model restructuring provided an overview of two distinct approaches: (1) event-driven restructuring and (2) performance-driven restructuring. In this article, we offer deep and practical insights to help you tailor your operating model for growth in emerging markets, which is a special type of performance-based restructuring.
A previous Deloitte article entitled “A Tale of Two Operating Models” highlighted two distinct approaches to operating model restructuring. With event-driven restructuring, rapid action is a top priority as companies scramble to respond to a major event such as a merger or business crisis. By contrast, with performance-driven restructuring companies pro-actively choose to improve their operating model and can thus afford to be more deliberate and thoughtful – carefully analyzing the situation, weighing the costs and trade-offs, piloting a variety of options and taking time to build consensus.
Restructuring an operating model for emerging markets tends to follow the performance-driven approach. This article provides a framework and practical advice to help companies restructure their operating models for profitable growth in emerging markets.
Download the full article below.