This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
This product (Partnerships with Emerging Market Startups) is a 24-slide PPT PowerPoint presentation slide deck (PPTX), which you can download immediately upon purchase.
For large global corporations, forming productive alliances with promising startups is a far more challenging undertaking than it appears. Global corporations frequently struggle to identify potential advantageous startup partners.
On the other hand, startups face significant difficulty isolating and contacting the appropriate decision makers in the corporations, given the massive hierarchies of global businesses.
These difficulties are amplified in Emerging Markets.
A study conducted in 3 countries considered Emerging Markets, identified the following 4 strategies that tackle the problems, which hamper forming of effective partnerships among global corporations and Emerging Market startups:
1. Compensate for the immaturity of the entrepreneurial ecosystem.
2. Commit resources to tapping the entrepreneurial energy in Emerging Markets.
3. Work with local groups to overcome the limitations of outsider status.
4. Co-innovate with startups to access novel technologies.
These strategies are mutually complementary, interdependent, and should be considered in a bigger picture, rather than in a disjointed way.
The slide deck also includes some slide templates for you to use in your own business presentations.
The PPT provides a comprehensive analysis of the unique challenges and opportunities that global corporations face when partnering with startups in Emerging Markets. It delves into the intricacies of the entrepreneurial ecosystems in these regions, offering actionable insights backed by extensive research. The strategies outlined are designed to help corporations navigate the complexities of these markets, leveraging local innovation and entrepreneurial energy to drive mutual growth.
The presentation also highlights key differences in priorities, restrictions, and scale that set Emerging Markets apart from more mature markets. By understanding these differences, corporations can tailor their engagement strategies to better align with local conditions. The document includes practical templates and case studies, making it a valuable resource for executives looking to forge successful partnerships with startups in Emerging Markets.
This PPT slide outlines a strategic approach to addressing the challenges faced by startups in emerging markets, primarily focusing on the immaturity of the entrepreneurial ecosystem. It identifies the limitations and gaps in these markets, often referred to as the "last mile" problem. This issue manifests in various forms, including unreliable information, weak property rights, and ineffective government systems, which complicate the operational landscape for startups.
The text emphasizes that in such environments, competition may be stunted, and the lack of impartiality can hinder contract execution. It highlights that many startups struggle to access essential resources and support from global companies, which is crucial for their growth. The strategy proposed involves building trust-based relationships between global firms and local startups. This collaboration is essential for ensuring that both parties can successfully navigate the complexities of the entrepreneurial landscape.
Global corporations are encouraged to provide substantial support to these startups, recognizing their limited capabilities. This support can take various forms, including mentorship and customized training programs tailored to the specific needs of the emerging market. The example of IBM's enhanced startup program in China illustrates how a global company can effectively localize its offerings to better serve startups in these regions. Overall, the slide conveys the importance of strategic partnerships and the need for global firms to adapt their approaches to foster growth in emerging markets.
This PPT slide outlines 4 critical factors influencing relationships between multinational corporations and startups in emerging markets, along with corresponding strategies to address these issues. The primary focus is on how multinationals can effectively engage with startups, given the unique challenges presented by these markets.
The first factor is the "immaturity of the entrepreneurial ecosystem." This suggests that many emerging markets lack the robust infrastructure and support systems typically found in more developed regions. The recommended strategy here is to compensate for this immaturity, likely through investment in local resources or partnerships that can help build a more conducive environment for innovation.
Next is the "appetite for entrepreneurship," which indicates the varying levels of enthusiasm and willingness among local populations to engage in entrepreneurial activities. The strategy proposed is to commit resources to harness this entrepreneurial energy. This could involve funding initiatives or providing mentorship to local entrepreneurs, thereby fostering a more vibrant startup culture.
The third factor, the "outsider status of Western multinationals," highlights the challenges faced by foreign companies in establishing trust and credibility. The suggested approach is to collaborate with local groups, which can help bridge cultural gaps and enhance the multinationals' acceptance within the local ecosystem.
Lastly, "access to novel innovations" emphasizes the importance of leveraging local startups for cutting-edge technologies. The strategy here is to co-innovate with these startups, allowing multinationals to tap into local expertise and innovations that may not be available in their home markets.
Overall, these strategies are interconnected and should be viewed as a cohesive framework for fostering successful partnerships in emerging markets.
This PPT slide outlines a strategic approach aimed at mitigating the challenges faced by global companies operating in emerging markets, particularly the outsider status that often hampers their effectiveness. The primary strategy focuses on collaborating with local groups to bridge the knowledge gap regarding local market conditions. This is crucial as unfamiliarity with these conditions can lead to significant operational disadvantages.
The overview section highlights that the lack of local knowledge is exacerbated by the inattention of corporate headquarters to insights from local managers. This disconnect can result in missed opportunities to adapt strategies that align with local expectations and needs. The slide emphasizes the importance of engaging with local governments and startups, which can provide valuable insights and facilitate smoother operations.
Key drivers of this strategy include the necessity for global corporations to generate socially relevant outcomes alongside economic ones. This reflects a growing expectation from stakeholders for companies to contribute positively to local communities. The slide suggests that by partnering with local institutions, such as incubators, global firms can demonstrate their commitment to the local market without the need for heavy investments in infrastructure.
An example provided is Amazon Web Services' collaboration with a local incubator in China, illustrating how such partnerships can enhance a company's local presence and operational effectiveness. The slide concludes by noting that global companies can effectively address their outsider status by leveraging local knowledge and resources, thus fostering a more integrated approach to market participation. This strategy not only aids in overcoming initial barriers, but also positions companies for sustainable growth in emerging markets.
This PPT slide outlines 2 critical factors that differentiate emerging markets: restrictions and scale. It begins by addressing the varying degrees of restrictions imposed on companies, particularly global firms. Some countries have stringent regulations that can force these companies to navigate complex technological limitations. This can lead to 2 potential outcomes: either a complete withdrawal from the market or the establishment of local partnerships. The slide emphasizes that such restrictions can foster a competitive environment dominated by local businesses, which may pose significant challenges for foreign entrants.
The second part of the slide focuses on scale, particularly in economic activity and entrepreneurship. It notes that some emerging markets have developed a robust ecosystem of startups and venture capitalists, while others lag behind. This disparity affects multinational corporations, as those in markets with a critical mass of startups tend to have more autonomy and operational flexibility. The slide suggests that the technological sophistication of local startups significantly influences global corporations' decisions regarding market entry and investment.
Overall, the insights presented highlight the importance of understanding local conditions in emerging markets. For potential customers, this information is crucial for strategic planning and risk assessment when considering market entry or partnerships. Recognizing these differences can help in tailoring approaches that align with local dynamics, ultimately leading to more informed business decisions.
This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
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