Where is growth in a world which is becoming scarce of opportunities because of market saturation and globalized trends ? The research on Fast Expanding Markets demonstrates that growth is where we don't search for it. A way to understand a new economic lens will be shared during the session.
What are Fast Expanding Markets
- The initial search
- The modelling
- The pilot testing
- The discovery and early detection
- The institutional framework
Opportunities from these markets
- Exponential growth in absolute terms
- Ability to mobilize new economic intelligence in our societies
- The downside of Fast Expanding Markets and the cycle
Mark Esposito is an senior professor of business & economics at GEM and founding director of the Lab-Center for Competitiveness. He serves as Institutes Council Co-Leader, at the Microeconomics of Competitiveness program (MOC) at the Institute of Strategy and Competitiveness, at Harvard Business School. Mark has a Doctoral Degree in Business Strategy and Economics from the International School of Management, on a joint program with St. John's University in New York City. He has worked with The European Parliament, The World Economic Forum, Women's Forum, The NATO and the UN for the last 10 years. His full profile can be found at www.mark-esposito.com
With the increasingly rapid change of the social, demographical and technological dimensions of business, compounded by the continuous economic and financial woes of the world, many firms have been less inclined to drive improvement in revenues in favor of cost cutting. The problem with this action is that it does not necessary confer sustainable competitive advantage. To grow the top line, it is increasingly important to find new sources of growth.
One way for companies to do so is to identify markets that are growing or about to grow at breakneck speed. These fast-expanding markets, or FEMs, pertain to a broad range of maturities within existing markets and are not exclusive occurrences of emerging economies, but can be found through the layers of any productive endeavor, market size and industry, in any geographic location of the world. Arguably, there are many markets that initially show a great deal of growth potential but which are unable to sustain significant growth over a longer horizon. Therefore, a broad and generic definition of FEMs can be markets with a growth of 15% every year for at least three years.
While this definition is not necessarily generally accepted, it should provide an idea of the magnitude of growth to the participants of this session. There is ground to believe that these markets will serve as a source of the growth in the next decade, and as an opportunity to forecast how the productive landscape is profiling, looking at a more sustained value proposition, coupled with a rapid pace of development, as is not the case with most traditional markets.