Wednesday, November 20, 2013

Blue water in emerging markets

The article “Blue Ocean Strategy” talks about how companies should try to create markets which are uncontested. In my opinion the emerging markets of Asia provide great opportunities to create such uncontested markets.
“Emerging-markets customers are faster-growing than the overall market because of their population expansion.
 Emerging-markets customers are easier to reach than the general market because they tend to live in high concentrations in various locations.
 Emerging-markets customers are frequently more loyal than the general market .” [1]
The Asian market is growing at a rate of 35%. Also, during the 2009 economic depression markets of India and China were growing at the rate of 6.6%. [2]
A company that has taken advantage of this is GPX global systems. GPX has bought a lot of real estate in countries like India and Indonesia, and are providing secure data centers. This business probably would not be very profitable in a North American Market. But GPX moved to a market where there are no major competitors in the field and hence are generating profits.
GPX also took advantage of the higher purchasing power of the middle class in the asian markets. Perhaps the same reason why apple launched the iphone 5-c, aiming at the emerging markets.
GPX realized that a lot of tech companies like Google, Microsoft have a large base in asia and are generating a lot of data as a result of this. They took advantage of this fact and moved to providing these companies real estate to store their servers.
It can be seen from the above examples that emerging markets provide with blue waters, companies just have to be aware of this.
REFERENCES:
1)    Holland, S. (2007). Pursuing emerging-markets opportunities. Mortgage Banking, 67(8), 145-146. Retrieved from http://search.proquest.com/docview/234928516?accountid=9902
2)    Pangestu, M. E. (2010). New market opportunities IN EMERGING MARKETS. International Trade Forum, (4), 17. Retrieved from http://search.proquest.com/docview/864279685?accountid=9902
    




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