Why do most large successful companies lose the ability to enter small emerging markets

Topics: Innovation, Management, Risk management Pages: 3 (924 words) Published: July 8, 2014
Most large successful companies lose the ability to enter small emerging markets because it brings additional risk to the corporation and might have stronger risk management policies. Other risks such as contractual risk, reputation risk, banking and currency risk, sustainability concerns are reasons why most companies fail to respond nimbly to changing market circumstances and challenges. Companies can address these issues by establishing proper risk management process, scenario development and contingency plans. In addition, large successful companies lose the ability to enter small emerging markets because they do not identify what they can and cannot do. They lose the capability to foresee changes, which disrupt any chances to continue to innovate and keep up with small emerging companies. Large successful companies need to always evaluate how effective they are using their resources, processes, and values. Once a company reaches the Large Company status, they lose focus and that’s not an acceptable practice in this changing technology and innovating world. Some companies fall so far behind technology and innovation where they end up going bankrupt and have to close. For example, one company may sell a product in a store and another company comes up with an ideal to sell the same product online. Customers will have the option of ordering the product online instead of driving to a store to get the same product. This a prime example of lack of continuing keeping up with technology and innovation can cause a company to hit growth trap and a result of having to close the business.

Resources management might be a reason to lose focus on what is and what is not emerging in the small markets. They do not allocate the right resources to focus on the small emerging markets such as time, people, equipment, and money. They put all their efforts in the large market to compete with the larger companies. So as the smaller markets continue to emerge, the large...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Acerinox- Small Company in a Large Market Essay
  • Essay about Emerging markets in latin america
  • why do market fail Essay
  • WHY do business internationalise Essay
  • Why "Jd" Company Is so Successful? Essay
  • Essay about Case Study on Why Apple Inc Was Successful in Emerging in the Canadian Market
  • Why Do Companies Such as Procter & Gamble Target Emerging Markets? Essay
  • Why Do Companies Go Global? Essay

Become a StudyMode Member

Sign Up - It's Free