Asset-driven strategies: Brand

Brand equity was, until recently, the exclusive province of multinational corporations (MNCs) from developed markets. But many emerging-market companies are trying to move up the value chain to enhance brand equity and access higher margins. Recent research has identified two types of emerging market companies: those that are export oriented and gain market share at the expense of rich-world competitors, and those that benefit from the emergence of a middle class in major emerging markets.
  • Companies that have tried to acquire overseas brands—e.g., Lenovo’s acquisition of IBM’s PC business—have had mixed success in sustaining the strength of those brands.

  • Most emerging-market brands are associated with below average prices: India’s Tata Group underscored this perception in 2008 with the launch of the Nano, the world’s cheapest car.
 Brand
CEO insights
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