BCG Names 100 'Global Challengers' From Emerging Markets That

BCG Names 100 'Global Challengers' From Emerging Markets That Are
Reshaping Global Industries 
These Fast-Growing Companies Are Spending $1.7 Trillion a Year to
Fuel Growth -- Creating Enormous Opportunities for Western Companies
That Can Win Their Business as Allies 
NEW DELHI, INDIA -- (Marketwire) -- 01/15/13 --  The Boston
Consulting Group has identified "100 global challenger" companies
from the emerging markets that are growing so quickly overseas that
they are reshaping industries and surpassing many traditional
multinational companies.  
In "Allies and Adversaries," a report published today, BCG finds that
these companies are outpacing household names in the U.S. and Europe
and are having a profound impact on the global economy. They come
from 17 countries -- with companies from Colombia and Qatar joining
the list for the first time. Also for the first time, the list
includes companies from the financial services, health care
equipment, and electronic commerce sectors. 
In the past five years, these companies -- many of them little known
in the West -- have added 1.4 million jobs, while employment at the
nonfinancial S&P 500 stayed flat. Their average revenue was $26.5
billion in 2011, the most recent year for which figures are
available, compared with $21 billion for the S&P 500's nonfinancial
companies and $20 billion for the entire S&P 500. In the same year,
they purchased more than $1.7 trillion of goods and services and
invested more than $330 billion in capital expenditures. 
"If ever there was a wake-up call for business leaders in the West,
this is it," said David C. Michael, coauthor of the report, head of
BCG's globalization practice, and coauthor of a new book called "The
$10 Trillion Prize: Captivating the Newly Affluent in China and
India" (Harvard Business Review Press). "We have been monitoring the
rise of global challenger companies for nearly a decade, and the
ambition of these companies -- what we call the accelerator mindset
-- has never been stronger." 
The report is the fifth in a series of publications identifying the
fastest-growing companies in the emerging markets. The first was
published in 2006.  
Allies and Adversaries is part of BCG's Game-Changing Program to help
leaders and their companies capitalize on the opportunities created
y the seismic shifts in the global economy.  
The report calls on business leaders in the West to follow the
example of other multinationals that are working with this new
generation of companies. In one partnership, Dr. Reddy's
Laboratories, an Indian pharmaceutical company known for generic
manufacturing, is conducting product development, while Merck, a
health care company based in Germany, is handling the manufacturing
of generic cancer treatments. In another, India's Bajaj Auto and
Japan's Kawasaki are jointly marketing products in the Philippines
and Indonesia. 
"Global challengers bring far more to the table than a low-cost
structure," said Tenbite Ermias, coauthor and head of BCG's office in
South Africa. "Multinationals that view global challengers only as
low-cost competitors misunderstand their competitive threat and their
potential for partnership." 
Twenty-six of the companies are new to the list in 2013, having
displaced other companies whose attempts to globalize were met with
obstacles. Several of the displaced companies were from the BRIC
nations of Brazil, Russia, India, and China. Once home to 84
challengers, these nations now account for 69 companies on BCG's
Also, state-owned and state-controlled companies have struggled to
match the success of private companies on the global stage. The
number of state-controlled companies on the list has fallen from 36
in 2006 to 26 in 2013. While many of these companies are satisfied
with focusing on their domestic markets, others have found it
difficult to excel overseas.  
"Many state-owned and state-controlled enterprises have not yet
cracked the code of global expansion. They need to learn how to
attract talent, take risks, and develop business models that work
outside their home markets," explained David Lee, coauthor and a BCG
partner based in Hong Kong. "These are things that all companies need
to master, and they can be particularly challenging for those
affiliated with the state." 
Methodology for Selecting the 2013 BCG Global Challengers 
Produced by BCG's Global Advantage practice area, the report was
based on a comprehensive screening of thousands of companies from
emerging markets conducted by BCG experts in each such market.
Companies generally needed to have annual revenues totaling at least
$1 billion and overseas revenues of at least 10 percent of total
revenues, or $500 million. The screening measured the size of each
company relative to other challengers and to multinational
competitors in their industries. It also analyzed each company's
international presence, the number and size of its international
investments, its M&A activity over the past five years, and the
strength of its business model. The team excluded those companies
that pursue only low-end, export-driven businesses.  
A copy of the report can be downloaded at 
To arrange an interview with one of the authors, please contact Eric
Gregoire at +1 617 850 3783 or 
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The Boston Consulting Group 
Eric Gregoire 
Global Media Relations Manager  
Tel +1 617 850 3783 
Fax +1 617 850 3701 
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