Report Predicts Growing Competition from Firms in Emerging Regions - Modern Distribution Management

Log In

Report Predicts Growing Competition from Firms in Emerging Regions

McKinsey: One 'imperative' to prepare for the shift will be sales force optimization.
Angela
Author
Date

By 2025, the number of large companies ($1 billion+ in annual revenue) with headquarters in emerging regions is expected to triple from 2010, according to McKinsey Global Institute's Urban World: The Shifting Global Business Landscape. According to the report, 70 percent of the new companies reaching that size between 2010 and 2025 will be based in emerging regions.

According to the report, the rise of emerging economies has presented U.S. companies with market and labor force opportunities, but emerging economies are also producing a growing number of large companies which the report says "could profoundly alter long-established competitive dynamics around the world."

One "imperative" the study suggests for CEOs preparing for increasing competition from within emerging markets is to optimize sales networks. "B2B companies will need to assess how to organize themselves so they can sell to a much more diverse and dispersed customer base. To do so, they must rethink (and perhaps redeploy) their sales networks."

Radically reorganizing a company's sales structure can also create higher customer value and switching costs while improving margins, according to Mike Marks and Steve Deist of Indian River Consulting Group in The Case for a Radical Sales Overhaul. Whether distributors define newly specialized sales roles by customer, service output or other factors, Deist says once you get to a market-based model “everybody is happier.” Learn more about sales force realignment in The Case for a Radical Sales Overhaul.

Read more about the impact of increasing global competition in Global Competition on a Local Level.

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.