Asset-driven strategies

The first set of strategic responses that companies from emerging markets are using leverage key corporate assets as a platform to implement differentiated strategies to succeed in those markets in which they have chosen to compete, both locally and internationally.

We have identified three major drivers of asset-driven strategies:

Financial strength Financial resources are the lifeblood of a company. The ability to tap capital at an affordable cost, is key for a company to remain competitive. Ironically, emerging markets are often starved for capital because of thin domestic capital markets, weak banking sectors and fickle flows of foreign capital.
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Brand Brands are essential identifiers of a company's goods and services; they set quality expectations, and differentiate a company's offerings. Many successful emerging-market companies are building solid reputations for reliability and cost effectiveness amongst their customers.
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People Companies succeed or fail because of the people they employ-from the executive suite to the factory floor. While emerging markets possess vast and inexpensive labour pools, those with the skills and experience needed to face global competition are thin on the ground.
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