Emerging Markets: 4 Keys to Speed and Success

HafeziCapital’s CEO, Babak Hafezi was extensively quoted within the SAP White Paper, Emerging Markets: 4 Keys to Speed and Success. The document discusses some of the key problems areas for organizations that are attempting to enter emerging markets. HafeziCapital’s CEO was quoted with the likes of Accenture, Ernst  & Young, and Booz Allen Hamilton within the article Emerging Markets: 4 Keys to Speed and Success. Please click on the link below to be able to download the article.

Click to download the article: Emerging Markets: 4 keys to speed and success

Some of the Quotes from the Article:

  • In joint ventures, go for a merger of equals. It’s important to select a partner that is about your company’s size and that can represent your brand well, says Hafezi. “When you have a relationship between a larger company and a smaller company, the smaller company generally doesn’t have the infrastructure to perform really well in the market.”
  • Understand and appreciate nuances. Marketplace differentiations are extremely granular, from language to preferences to socioeconomics. Even within a particular region or hemisphere, the differences from country to country can be vast. For example, notes Hafezi, Argentinians are cosmopolitan and highly nationalistic and associate themselves with Europe. Meanwhile, Chileans have a more open economy, are known for welcoming technology startups, and align their thinking towards Latin America. “Ultimately, buying is a human endeavor, and thus adaption to the local demand is key while having an overall global culture and feel,” he adds.
  • Sell the way people prefer to buy. People in emerging countries frequently purchase goods on the streets instead of through established business fronts. Hafezi recounts the experience of a food company that sells sausage products throughout the Middle East and Africa: “They have hundreds of thousands of street resellers that sell these small sausage rolls on the streets, and that’s how they have gained control in that market.” This also points to a broader trend: that of the informal economy, a prevalent business model in many emerging markets where unincorporated entities sell outside of government regulation and taxes, according to Hafezi. “For some multinational companies, the informal economy is the most valuable market segment and one that is still growing,”he says. Some estimates place the informal economy at 1.8billion people with a net value of U.S.$10 trillion annually, making it the second-largest economy in the world, he adds.

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