Emerging markets are important because their economic growth will be faster than developed economies; the cost to do business is lower and local markets are bigger. Successful companies in emerging markets have learned to frugally innovate, redesign products, and create distribution models that produce at a third of the cost of industrialized countries and meet the particular needs of their customers.

Conventional wisdom had been that emerging market countries would move to a liberal capitalist economy, but this has not happened. It is worth realizing that while not all emerging market countries have policies and structures in place that are receptive to business, citizens of emerging market countries are increasingly leading global institutions and influencing the global rules. Strategies for selling in emergent markets should be chosen carefully. Proctor & Gamble uses a central organization to gain global economies of scale and sells primarily in ten large emerging markets. Unilever sells in 190 countries and customizes its product toward local needs.

Two challenges exist for companies that want to do business in emerging markets: frugal innovation to meet the specific needs of customers and working with host governments. The author recommends partnering with local companies or establishing subsidiaries.

This short, accessible article deals indirectly with computers. It will be of most value to readers working at companies that sell internationally.