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Developing Disruptive Products for Emerging Economies: Lessons from Asian Cases

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Emerging economies, with their vast, untapped markets, present new growth opportunities for multinational companies willing to accommodate the particular needs of these markets. Our study analyzes four innovative firms in Asia that became multinational companies on the back of disruptive products developed specifically to address the needs of consumers in emerging economies. The cases suggest that firms wishing to operate in these markets must be receptive to the opportunities arising from the resource constraints typical of consumers in the markets and willing to develop the capabilities to meet the aggressive price/performance ratios required by consumers. Our study highlights critical R&D and managerial practices that are vital for creating new, affordable products or services for the unserved mass markets in developing countries. This analysis has important implications for reverse innovation.
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Keywords: DISRUPTIVE INNOVATION; EMERGING ECONOMIES; PRICE/PERFORMANCE RATIO; REVERSE INNOVATION

Document Type: Research Article

Publication date: July 1, 2010

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