The Boston Consulting Group unveiled a tool designed to help companies determine if they are ready to compete in emerging markets. The 'Globalization Readiness Index' gives companies a quick read on their preparedness to compete.
The Index also identifies strengths and weaknesses in a company's ability to succeed in those markets and can serve as a benchmarking tool. Unlike metrics such as revenues and market share, the Index looks forward and anticipates how well a company is likely to perform in emerging markets in the future, according to Bernd Waltermann, a Senior Partner with BCG.
In a recent BCG survey of executives of multinational companies, nearly three-quarters—73 percent—indicated that emerging markets were a priority, but only 13 percent said that their companies were ready to win in them.
"Executives of global companies understand how important emerging markets are to their future in this two-speed world. But until now, they have had a hard time judging whether or not they were ready to win," says Waltermann, who is based in the firm's Singapore office.
Waltermann says the index specifically measures a company's potential in these markets by doing a best-practice analysis of its leadership commitment, product portfolio, go-to-market capabilities, people and organizational functions, and scale and reach.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.