OPPORTUNITIES IN THE EMERGING MARKET ECONOMIES

Abstract

Emerging markets are an attractive opportunity for businesses to enter and invest in due to the rapid rise in development, high potential and a fast paced high economic growth. Many developed markets are saturated with competition and slow economic growth, so the focus has shifted to developing markets, also known as the 86 percent markets as they consist of 86% of the total global population. Emerging markets are the future and they give a chance for companies to innovate and through the right strategies and solutions develop sustainable businesses for the future.  Companies from developing countries have a greater chance to build successful businesses in other emerging markets than companies from developed markets because of experience and understanding of similar conditions, environment etc. This paper gives a description of emerging markets, their characteristics and differences from developed markets. Emphasis is placed on how these markets are important due to the population size and rapid growth and how companies would benefit from the 86 percent solution.  Challenges and opportunities that arise from facing them are explained with examples of how some brands have used these opportunities as entry strategies to tap into emerging markets.