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Why companies fail in emerging markets: Know or anticipate what others are getting into

When companies prioritise the markets they are considering entering, they often do so on the basis of a few key economic indicators. This produces hotspots, with many players pouring into some markets and few into others. For example, as a regional star, Hungary attracted all the major players in the mid-1990s, creating one of the tightest, most competitive markets in Europe where many firms struggled to make any money. However, companies which anticipated how crowded the Hungarian market was going to become and opted to invest more in Russia found themselves in a market that offered less competition, higher margins,quicker profits and more scope to build market share and brand loyalties.
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