Trumping the Multinationals

This is a great article on bnet that explains how local companies are beating the competition from multinational companies like Wal Mart and Google. Below is an excerpt of the article.

Full Article: http://www.bnet.com/2439-13239_23-190912.html

Excerpt:

If you're setting out to compete in rapidly developing economies, beware: Smart domestic enterprises are staving off the challenge from global market leaders. And they're seizing new opportunities before multinationals can.

Consider: In China, search engine Baidu is used seven times more than Google China every day. In India, Bharti Airtel has trumped Vodafone as the market leader in cellular telephony. And in Mexico, Grupo Elektra has beaten Wal-Mart as the country's top retailer.

Domestic dynamos like these dominate foreign rivals by applying six strategies. For example, they use their deep understanding of consumers in their countries to create highly customized offerings. They leverage cutting-edge technology to keep operating costs down. And they tap into pools of cheap local labor instead of relying on expensive automation.

To prevail over local winners on their turf, set aside your tried-and-true strategies, advise Bhattacharya and Michael. Instead, understand--and emulate--domestic players' tactics.