This chapter is from the book
This chapter is from the book
This chapter is from the book
Domestic Emerging Markets
To take another example, consider how most companies view inner-city markets. These markets tend to be areas with low incomes, high crime rates and other risks or costs—in short, they are seen as a marketer's nightmare. Even as major companies are waking up to the potential of emerging markets around the world, inner-city markets are still largely neglected. Yet, as Michael Porter has pointed out, these markets have distinctive advantages and hidden opportunities if we look more closely.[4] While income may be lower, population density is much higher so "spending power per acre" is comparable to more affluent parts of the city. These markets are in strategic locations and often present demographics segments that are crucial to future market growth.
If we were to reframe the inner city as "domestic emerging markets," what new possibilities would this open? What strategies that are being used to address emerging markets in China and India might be applied in the cities of the United States and other developed nations with good effect? This simple shift in the way we view these markets could open new possibilities for strategies and new potential for growth.
How do your models for your industry and business prevent you from recognizing opportunities and realizing the full value of your organization?