Uncommoditizing Strategies by Emerging Market Firms

Cuervo-Cazurra, A., Carneiro, J., Finchelstein, D., Duran, P., Gonzalez-Perez, M. A., Montoya, M. A., Borda Reyes, A., Fleury, M. T. L., Newburry, W. 2018. Uncommoditizing strategies by emerging market firms. Multinational Business Review (Forthcoming)

31 Pages Posted: 12 Jun 2018 Last revised: 11 Dec 2018

See all articles by Alvaro Cuervo-Cazurra

Alvaro Cuervo-Cazurra

Northeastern University - Department of International Business and Strategy

Jorge Carneiro

FGV-SP

Diego Finchelstein

University of San Andres (UMSA)

Patricio Duran

Adolfo Ibanez University

Maria Alejandra Gonzalez-Perez

Universidad EAFIT

Miguel A. Montoya

Instituto Tecnológico de Estudios Superiores de Monterrey

Armando Borda Reyes

Independent

Maria Tereza Fleury

FGV-SP

William Newburry

Florida International University (FIU) - Department of Management & International Business

Date Written: May 13, 2018

Abstract

We analyze how emerging market firms upgrade their capabilities to international levels. We focus on the development of uncommoditizing strategies that enable emerging market firms to go beyond the usual price competition with low-quality products and, instead, serve customers with premium pricing and quality and reputable products. From the analysis of eighteen Latin American companies from six countries in a variety of industries, we propose three dimensions of uncommoditizing strategies:

(1) tropicalized innovation, in which firms develop product innovations and brands that are adapted to the needs of emerging economies, enabling them to differentiate their products;

(2) global efficiency, in which firms develop efficient processes that reduce costs, helping them to generate reliable and high-quality products; and

(3) coordinated control, in which firms expand their presence into higher value added segments of global value chains to achieve control and use fast decision making to ensure rapid response to new customer demands.

Keywords: competitive advantage, strategies, upgrading, capabilities, emerging markets, commodities, Latin America

JEL Classification: M1, M2

Suggested Citation

Cuervo-Cazurra, Alvaro and Carneiro, Jorge and Finchelstein, Diego and Duran, Patricio and Gonzalez-Perez, Maria Alejandra and Montoya, Miguel A. and Borda Reyes, Armando and Fleury, Maria Tereza and Newburry, William, Uncommoditizing Strategies by Emerging Market Firms (May 13, 2018). Cuervo-Cazurra, A., Carneiro, J., Finchelstein, D., Duran, P., Gonzalez-Perez, M. A., Montoya, M. A., Borda Reyes, A., Fleury, M. T. L., Newburry, W. 2018. Uncommoditizing strategies by emerging market firms. Multinational Business Review (Forthcoming). Available at SSRN: https://ssrn.com/abstract=3177779

Alvaro Cuervo-Cazurra (Contact Author)

Northeastern University - Department of International Business and Strategy ( email )

D'Amore-McKim School of Business
313 Hayden Hall, 360 Huntington Avenue
Boston, MA 02115
United States
16173736568 (Phone)
16173738628 (Fax)

HOME PAGE: http://cuervo-cazurra.com

Jorge Carneiro

FGV-SP ( email )

Sao Paulo
Brazil

Diego Finchelstein

University of San Andres (UMSA) ( email )

Vita Dumas 284
(1644) Victoria, Pcia
Buenos Aires, Buenos Aires 1644
Argentina

Patricio Duran

Adolfo Ibanez University ( email )

Diagonal Las Torres 2640 Peñaleón
Presidente Errázuriz 3485 Las Condes
Santiago, 794-1169
Chile

Maria Alejandra Gonzalez-Perez

Universidad EAFIT ( email )

Carrera 49 N° 7 sur – 50
Bogotá, Antioquia 00000
Colombia

Miguel A. Montoya

Instituto Tecnológico de Estudios Superiores de Monterrey ( email )

Av. General Ramón Corona No.2514
Zapopan, Jalisco, 45201
Mexico
523336693000 (Phone)

HOME PAGE: http://www.itesm.mx/wps/wcm/connect/Campus/GDA/Guadalajara/

Armando Borda Reyes

Independent ( email )

No Address Available

Maria Tereza Fleury

FGV-SP ( email )

Sao Paulo
Brazil

William Newburry

Florida International University (FIU) - Department of Management & International Business ( email )

University Park
Miami, FL 33199
United States

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