Survey Highlights Lack of Good Diligence as a Concern for Operating in Emerging Markets

July 16, 2012

Recently, Global Intelligence Alliance conducted an online survey on emerging markets among business managers at 431 large and mid-sized companies around the world. Various industries were represented in the report, including telecommunication, professional & business services, financial services, and pharmaceuticals & healthcare. Among the respondents, those from Europe consisted 38% of the total, with North America 24%, Asia 21%, Latin America 11%, and Africa & the Middle East 6% respectively.

Highlights from the survey signal that over the next five (5) years the technology sector expects the most growth, while out of the top ten (10) emerging markets, respondents said that Asia and the Latin America nations of Mexico, Brazil, and Argentina were of most interest. Similarly interesting, despite their proximity to Russia, European companies are prioritizing Asia and Latin America. Mexico also stood out as a leader in the health care sector.

Apart from bureaucracy being the biggest threat across industries, respondents’ main concerns included their inability to adapt more to local conditions, as well as, not acquiring better market intelligence and due diligence. Over half of the respondents said that information on emerging markets was not readily available in their organizations, with most doubting the accuracy and completeness of the information that they did have. What’s more concerning was that half of the companies operating in emerging markets noted that the lack of information had delayed decision making.

Poor market intelligence and due diligence, and general lack of valuable information can cripple a company’s chances to compete, endure, and ultimately thrive in the global marketplace. Operating in the emerging markets requires reliable and trustworthy intelligence delivered in a timely manner. But beyond data, companies should be informed about the local environment with which they wish to do business in. The cultural nuances of each locality is often as, or more important than simply retrieving data. High level transactional due-diligence demands more than just one dimensional intelligence. In emerging markets, it’s the difference between sinking and swimming.