Winning opposite Local Competitors in Emerging Market

In the era of globalization, Global Giants set shops in many countries to conquer the market and dominate them. These markets have different business environment than their home country yet, some tend ignore this fact and try to standardize the processes assuming that the same jacket will fit all ! and in the process fails to capture the imagination of the the customers and not able to enthuse them. As a result, customers continue to stick to the local competition for majority of their requirement and only for niche products approach these global companies.

Those who muster the strength to do business with the global companies soon realizes that they as a customer are unable to negotiate as the power tilts towards the supplier side. This also forces the customers to change sourcing strategy and shift to local suppliers who are flexible and able to customize their products and services as per the requirement quickly.

Most of the global companies show Product leadership and have Operational Excellence but lack Customer Intimacy and trust in terms of their ability to support in need of the hour. While the local companies are mostly owner driven where the command and control system lies with the owners. Therefore the response is decisive and quick in emergency. Further local owner based companies invest time and effort in developing and building effective relationship. This is also aided by Contact, Connection, Culture & possible Family ties which helps them to get an insight into the customer Growth Potential and possible entrance into the business.

Differentiators

1. Technology
2. Access to Market & Customers
3. Access to finances
4. People Management
5. Compliance
6. Health Environment & Safety Orientation
7. Intellectual Properties
8. Low or no Focus on Brand / Image
9. Commitment based on Personal Assurance
10. Unfair Means

Most of the local companies in India customize their product and services to meet the price target of the customers and run frugal / lean operations with minimal investment towards image building or brand building. Although this would depend on the industry and the nature of the business.

The owners don't hesitate to take risks and at times increase the internal inefficiencies and stress both on the organization and finances. However their sole objective is to keep the customers happy and continue and grow business for which they risk a hit.

There exist a vast difference between how a Multinational company respond to an event in comparison to the local owner based company that yield a completely different outcome. It can be also understood by using Jack Canfield's E+R=O model. 

According to which we don't have any control over the event which are disruptive in nature however our response to that event usually shapes the outcome. Companies needs to Anticipate and Adapt through Preparedness. It is the quality of the response that usually determines whether the outcome is PAIN or GAIN.

As a leader it is critical to work with the team in a collaborative style, understanding the local cultural diversity and the underlying behavior influencers so that the beliefs can be modified through aligning corporate value system with the personal values of individual team members. This activity over time yields desired calibrated response and a desired outcome.

Therefore, in order to take on the local competition global companies needs to shed their EGO and perceived invincibility and 

1. Be customer focused
2. Embrace Service Oriented Processes from a Product led Mindset.
3. Adapt to the market need than what we have is what it is mindset.
4. Needs to ask - The products are best in class but is it what the customer needs or is assumed ?

This in conclusion, it is necessary to create Interactive Relationship only them customers would be attracted and develop trust and improve understanding though quality of interaction. 

Below are the three critical factors to succeed:

Suranjan Das