100 Companies From Rapidly Developing Economies Are Fast Joining the Ranks of the Multinational Elite, According to a Report by The Boston Consulting Group
Chinese, Indian, and Middle Eastern Companies Are Among 19 New Entrants to BCG's Annual List of Global Corporations Shaking Up the Traditional World Order
| Source: The Boston Consulting Group
DAVOS, SWITZERLAND--(Marketwire - January 28, 2009) - The world's leading multinationals are
facing an unprecedented competitive challenge from a new group of
fast-globalizing companies based in rapidly developing economies (RDEs),
according to a report published today by The Boston Consulting Group (BCG).
BCG has identified 100 such challenger companies, with combined 2007
revenues of $1.5 trillion, that are either catching up with or have already
overtaken their longer-established rivals in the United States, Europe,
Japan, and elsewhere. And if any of these companies stumble and fall during
the global economic crisis, there are many others ready to take their
places.
The findings in the report -- titled "The 2009 BCG 100 New Global
Challengers: How Companies from Rapidly Developing Economies Are Contending
for Global Leadership" -- serve as a wake-up call for the CEOs of today's
corporate giants. In a stark warning, David Michael, the report's coauthor
and a BCG senior partner based in Beijing, said: "For those who make the
right moves quickly, the challengers could become clients, suppliers, and
even strategic partners. For those who don't, the challengers will
represent fierce competitors."
Chinese companies dominate the list, numbering 36, followed by firms from
India (20), Brazil (14), Mexico (7), and Russia (6). For the first time,
the Middle East is represented, with 4 companies from the United Arab
Emirates and 1 from Kuwait. Their rapid rise reflects the speed with which
these countries are endeavoring to build economies that are not dependent
on oil and gas. In all, 14 countries are represented in the list.
The companies are drawn from a wide range of industries -- from natural
resources and metallurgy (20 companies), to food and beverages (13) and
carmakers and component suppliers (10).
In addition to some widely known names -- for instance, China's Lenovo
Group and India's Tata -- this year's BCG 100 New Global Challengers list
also contains some lesser-known corporations. These include Kuwait-based
Agility, one of the world's top ten logistics service providers, and Dalian
Machine Tool Group, China's largest machine-tool company.
By several measures, the BCG 100 New Global Challengers are already
outperforming established industry leaders. Their revenues grew by 29
percent per year in dollar terms from 2005 to 2007, significantly outpacing
the S&P 500, Nikkei 225, and DAX 30. Moreover, they earned average 2007
operating profit of 17 percent.
But these companies are not immune from the damaging effects of the global
downturn. Last year, the crisis took its toll on their formerly soaring
stock prices. Nonetheless, according to Arindam Bhattacharya, the report's
coauthor and a BCG partner based in New Delhi, the challengers have been
adept at changing, learning fast, and adapting their businesses to the new
economic environment. "To contend with significantly more volatile costs,
they are diversifying geographically, optimizing their supply chains,
improving their productivity, passing costs on to others where possible,
and seeking government support. So, despite the crisis, most of the
companies in BCG's New Global Challengers list will become increasingly
competitive on the international stage."
To order a copy of "The 2009 BCG 100 New Global Challengers: How Companies
from Rapidly Developing Economies Are Contending for Global Leadership," go
to:
www.bcg.com/impact_expertise/publications/publication_list.jsp?pubID=2815
To arrange an interview with one of the authors, please contact Eric
Gregoire at +1 617 850 3783 or gregoire.eric@bcg.com.
About the Methodology for Selecting the 2009 BCG 100
Produced by BCG's Global Advantage Initiative, the report -- "The 2009 BCG
100 New Global Challengers: How Companies from Rapidly Developing Economies
Are Contending for Global Leadership" -- is based on a detailed screening
of more than 3,000 companies from RDEs. First, the BCG research team
ensured that the candidate companies were truly RDE-based. Next, it applied
a set of quantitative and qualitative criteria, including company size.
Finally, it looked at three years of financial data and scored the
remaining companies using globalization criteria, including the company's
international presence, its major international investments pursued in the
past five years, the breadth and depth of its technologies and intellectual
property, and the international appeal of its offerings and value
propositions.
About The Boston Consulting Group
The Boston Consulting Group (BCG) is a global management consulting firm
and the world's leading advisor on business strategy. We partner with
clients in all sectors and regions to identify their highest-value
opportunities, address their most critical challenges, and transform their
businesses. Our customized approach combines deep insight into the dynamics
of companies and markets with close collaboration at all levels of the
client organization. This ensures that our clients achieve sustainable
competitive advantage, build more capable organizations, and secure lasting
results. Founded in 1963, BCG is a private company with 66 offices in 38
countries. For more information, please visit www.bcg.com.