Strategies of Market Growth

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Today, the economies of most of these markets are growing and expanding at a rate that easily attracts multinational companies from all across the world. Most of these emerging markets are also having very favourable macroeconomic and microeconomic policies that put them at highly lucrative positions to choose in the doing of global business. With the coming and advancement of technology also, there has been a major boost in terms of how effective and efficient business is undertake in these emerging markets. All of these favourable conditions notwithstanding, it remain a fact that with the level of development in these emerging markets, companies need much strategic approaches to make good use of consumers in emerging markets, especially those at the bottom of the pyramid. In this paper, two key business strategies that can be used by these companies are critically discussed. Strategies of Market Growth Gollakota (2010) identifies consumers at the bottom of the pyramid as one of the most important stakeholders of any company‚Äôs supply chain, especially those in emerging markets. … erstanding circumstances that consumers must satisfy to meet their needs, whiles the final parameter looks into the essence of what the consumer wants to accomplish (Gollakota, 2010). Generally, though, the deep cost management centres on the second paradigm, which advises the need for prices of products and services to be cut low to ensure that those at the bottom will also have the means of responding to their needs. For the companies to do this cost cutting without running at a loss it important that they are engaged in prudent management of production cost. In the second instance, the use of deep benefit management is recommended for use. Unlike the former which focuses on cost management, this is more concerned about value management, where the need for companies to think of ways of adding new features that give unique value to their products and services is recommended (Ghemawat, 2010). In most cases, what has been observed with emerging markets is that consumers at the bottom want to use their money in the most guaranteed means that they have to be very certain about value for money. In effect, even if they will have to be paying more, they would need guarantee that the same product or service from another outfit has less value than the one they are purchasing (Pelle, 2007). Meanwhile, the best way to raise the value of a product is by introducing new features that takes away cost in an indirect manner. Some of these ways include offering convenient locations, transport, or other services that are essential for BOP customers Gollakota, 2010 p. 361). Conclusion In conclusion, it will be reiterated that the need for businesses and organizations to succeed is not an achievement that comes by accident, especially when reference is made to emerging markets. As