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Why companies fail in emerging markets: Be early to market and go for it

As emerging markets mature, it becomes harder to persuade consumers to switch brands and take market share from established products, as it is in the developed world where firms celebrate if they manage to increase their market shares by 0.5% in a year. What surprises many companies is how quickly a competitive business environment can develop in emerging markets, despite their relative lack of economic sophistication and occasional crises. Companies that allow other players to dominate the market for too long (through a half-hearted approach or by late entry or both) always find it difficult to turn things around. While mighty Wrigley dithered about expanding into Russia, for example, Dandy, a small privately held Danish company, captured almost the entire local market. It took Wrigley years and millions of dollarsto catch up.

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