MM5802 #New Business Model in Emerging Markets# Group 9

New Business Model in Emerging Markets

ntroduction
#ight now, many multinationals are operating in emerging economies. Furthermore
western multinationals expect to Iind most oI their Iuture growth in China and India.
However there are also some obstacles appear. More speciIically some novel ventures
reveal a way to help companies create new and Iind competitive advantages. A business
model innovation and implementation process is developing in both mature and
emerging markets.
Customer value proposition
When entering the emerging markets, established companies should identiIy unmet
needs. New business models and oIIerings to better meet consumer`s needs aIIordably
and proIitably will be succeed. Customer value proposition is also oI vital importance to
the growth oI company. A robust approach to creating an aIIordable emerging market
oIIering is to trade oII expensive Ieatures and Iunctions that people don`t need Ior
less-expensive ones they do need.
Business model
The innovation and implementation process oI business model consists oI three steps:
identiIy an important unmet job, blueprint a model and implement the model by testing
essential assumptions and adjusting. Business models must integrate Iour elements: the
customer value proposition, the proIit Iormula, key processes and key resources.
Testing and implementing the business model blueprint in emerging markets is as much
an art as a science. First, test various business models Irom the very beginning. Second,
MM5802 #New Business Model in Emerging Markets# Group 9

agile Iunctional expertise is the most critical kind. Third, conduct rapid experiments
inexpensively and use what you learn Irom them. Four, consider the potential Ior such
business model innovations,
our elements to uncover the unmet requirements
The most important part is the judgment .Clients mainly chooses their appetite which
means enterprise should provide the correspondent idea with their customers. Besides,
investigation contributing to make the comprehensive sense oI the substitutes may also
help to occupy the emerging market in time. Not just Iocus on what your competitors
doing Ior but also determine the marketing prediction by Ieedback Irom your clients.
Furthermore, the compensating behavior engages companies to search the insuIIicient
Iactors internal or external oI the emerging market.
Conclusion
From this report, we can Iind there are many advantages Ior business developed in the
emerging markets, such as a lower labor cost, abundant nature resources, enough energy
and so on. But we can also Iind there are also many obstacles. Such as, lack oI
inIormation and the inequality income. We will give some advice Ior investors to
develop their business. Firstly, do more researches to indentiIy the correct target
consumers and market segmentation. Secondly, we should do a correct business model
which includes the segment markets, customer value proposition, key resources and
process. Thirdly, we need to do a complete blueprint which contents market strategy,
Iinancial plan and so on. (443 words, exclude title page & reIerences)
MM5802 #New Business Model in Emerging Markets# Group 9

#eference:
1|. HB# on Business Model Innovation.2010 'Business model innovation and sources
oI value creation in low-income marketsp135-139.
2|. Sanchez, Pablo, #icart, Joan E. European Management #eview, 2010, Vol. 7 Issue 3,
p138-154.
3|. http://en.wikipedia.org/wiki/Emergingmarkets
4|. Yuriy Gorodnichenko, Jan Svejnar, Katherine Terrell. 2008 'Globalization and
Innovation in Emerging Markets
5|. http://www.investopedia.com/articles/03/073003.asp#axzz1cbPlwQjQ