Over the next 30 years, virtually all of the world's population growth is expected to be concentrated in urban areas in the developing world.While much of the current sustainable cities debate focuses on the formidable problems for the world's largest urban agglomerations, the majority of all urban dwellers continue to reside in far smaller urban settlements.For the independent-minded Bajaj family, a joint venture with Honda was not an option.But faced with Honda’s superior resources, what else could the company do?By understanding the basis for competitive advantage in your industry, you can better appreciate the actual strengths of your multinational rivals.And by assessing where your own competitive assets are most effective, you can gain insights into the breadth of business opportunities available to you. Despite the heated rhetoric surrounding globalization, industries actually vary a great deal in the pressures they put on companies to sell internationally.
And while cities command an increasingly dominant role in the global economy as centers of both production and consumption, rapid urban growth throughout the developing world is seriously outstripping the capacity of most cities to provide adequate services for their citizens.
Often, the very survival of local companies in emerging markets is at stake.
Strategists at multinational corporations can draw on a rich body of work to advise them on how to enter emerging markets, but managers of local companies in these markets have had little guidance.
Honda, which sold its scooters, motorcycles, and cars worldwide on the strength of its superior technology, quality, and brand appeal, was planning to enter the Indian market.
Its remarkable success selling motorcycles in Western markets and in such nearby countries as Thailand and Malaysia was well known.