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The potential risks of entering emerging markets include the need to adapt to the voids in a country's product markets, its input markets, or both. Companies may lose their advantages of global scale and global branding if they make shifts that are too radical. Other risks include political instability, economic volatility, legal and regulatory hurdles, cultural differences, and potential issues with corruption.
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To succeed, the scholars say, business models need to be tailored to each new nation's particularities. " may have to adapt to the voids in a country's product markets, its input markets, or both. But companies must retain their core business propositions even as they adapt their business models. If they make shifts that are too radical, these firms will lose their advantages of global scale and global branding," Khanna and Graham Walker write in their article for "Harvard Business Review" ("HBR").
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Where to find new opportunities in an ever more competitive market? Use our Emerging Markets presentation to inspire expansion at the global level and...
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