For both Asian and developed-market businesses, Asian companies’ globalization presents growth opportunities that may not have materialized otherwise.
This report examines the key areas in which global competition is changing and how companies from different markets can combine their strengths and capabilities to enhance growth. It explores several situations arising from Asian business expansion and suggests actions that developed-market companies can take to capitalize on them:
• Growing demand for assets from Asian companies has intensified global competition for acquisitions.
• As Asian companies seek to develop more sophisticated and high-value products and services, developed-market companies will face much greater competition on cost in their core segments.
• Markets outside Asia and the developed markets are becoming the new battleground for market share.
• Some mid-market segments are becoming crowded, forcing developed-market companies to target the lower-end segment in addition to the higher end that they are used to serving.
• Developed-market companies can combine forces with Asian companies so that both parties make the most of each other’s strengths and capabilities.
• Rapid-growth markets are becoming the global centers for key corporate activities, necessitating considerable investment in talent.
Our report recommends that companies in developed markets think creatively, understand the competitive landscape and learn from the global success of Asian companies.