Key success factors for business operations in emerging markets: Qualitative results from Sub-Saharan Africa

Abstract

As the world economy is emerging from the global financial crisis, it is generally expected that economic recovery will be slow, with emerging economies, including those of sub-Saharan Africa (SSA), expected to be the leading economic performers for some time to come. As economic prospects improve and global competitiveness intensifies, multinational companies (MNCs) will increasingly explore these opportunities that emerging markets offer, despite the higher inherent risks associated with the attractive profit potential that these markets offer compared to developed country markets. More specifically, the focus of MNCs in recent times has shifted to capturing a share of the market at the bottom of the economic pyramid (BOP) in emerging markets, estimated to be in excess of 4 billion people worldwide who are poor and underserved by the private sector, which includes MNCs. However, many MNCs have approached emerging and especially BOP markets within these markets based on flawed analyses, inappropriate strategies, and with existing portfolios of products and services developed and priced for Western markets which are often out of reach of both existing and potential customers in BOP markets. Based on qualitative research using a multiple case study approach, the purpose of this article is to identify strategic and operational key success factors for MNCs operating successfully in selected SSA country markets.