Changing dynamics − G7 & E7

Emerging economies are important markets—both in size and growth. In fact, China, India, Brazil and the other emerging markets are becoming not just low-cost production locations but also increasingly large consumer markets and companies seeking growth will need to look increasingly to these emerging markets. To be successful, technology companies will need to develop products that appeal to a "mobile only" demographic used to using a single device that provides both data and voice, that requires little or no technical support and runs simple and straightforward applications.

These markets can be challenging places to do business. It is important to understand and adapt to local rules, regulations and customs. The right entry strategy or the right joint venture partner(s) is crucial, as are good relations with local government and regulatory bodies. Regional geographic knowledge is critical because, in some cases, the optimal production locations may not be the same as the largest consumer markets (e.g. investing in Malaysia, Indonesia or Vietnam as a gateway to China or India, or in Poland as a gateway to Russia).

Offering both vast opportunity as well as many challenges, a great deal of their future growth may very well depend of tech companies' ability to adapt offerings and business models to emerging economies.

How PwC can help

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Technology industry trends - management as a competitive advantage
Raman Chitkara discusses how technology companies can use cost management as a competitive advantage