Article: Positioning in emerging markets

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Positioning in emerging markets

Contents


Introduction

This topic discusses positioning of products and services in the special case of emerging markets. We divide the analysis below to the cases to market incumbents (firms based in emerging markets) and new entrants (firms entering emerging markets from the outside).

Comment to potential contributors:

This article needs a decision on whether this is about strategic positioning or positioning of products and services



Approaches

Relevance to software business

Incumbent firms seemingly face an uphill battle against the large international companies entering their markets. However, there are different strategies for coping with this kind of competition. A Dodger tries to find a valuable position within the value chain. A Defender fights where the bigger companies are the weakest. A Contender tries to upgrade it's capabilites to match the bigger companies. An Extender expands to other markets which are similar to theirs.[1]


Comment to potential contributors:

This needs practical examples of the cases mentioned. Either documented here or as separate case articles



Software companies in emerging markets are often competing with each other by getting process and quality cetifications such as CMM and ISO9001. Having a certification helps companies to predict time and costs in projects and at the same time improves their possibilities in moving up in the value chain. Certification increases the growth of a company which enables them to get bigger projects.[2] Over half of world's Capability Maturity Model level 5 companies are in India. [3]

Example of the phenomena

Theoretical approaches

Currently interesting research questions

Links to related articles

Article: Software idustry in emerging markets

Article: Outsourcing and offshoring

See also

References

  1. ↑ Dawar, N. & Frost, T. (1999). Competing with giants: survival strategies for local companies in emerging markets. Harvard Business Review, 77(2), 119–130
  2. ↑ Arora, Ashish and Asundi, Jai,Quality Certification and the Economics of Contract Software Development: A Study of the Indian Software Industry(July 1999). NBER Working Paper No. W7260. Available at SSRN: http://ssrn.com/abstract=202429
  3. ↑ Arora A., Arunachalam V.S., Asundi J., Fernandes R. The Indian software services industry (2001) Research Policy, 30 (8), pp. 1267-1287.
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