Global Niche Market Leaders in Emerging Asia and the Necessity to Become Market Insiders

Ekonomiaz Revista Vasca de Economía N.º 95, 1.º semestre, 2019

24 Pages Posted: 21 Jun 2019

See all articles by Bernd Venohr

Bernd Venohr

Berlin School of Economics and Law

Bart Kamp

University of Deusto - Basque Institute of Competitiveness

Date Written: December 3, 2018

Abstract

In the present article we focus on the implications that the Emerging Asia growth trend implies for medium-sized companies from Germany that are market leaders or a top 3 supplier in their respective niche or market segment (aka ‘Global Niche Market Leaders’). We find that only a small portion of the companies considered have developed insidership on the Asian continent in general and in China in particular. We contend that this can put a mortgage on the strength of their global market position in the mid-term. We argue that it is recommendable to adopt a more assertive approach towards the Asian/Chinese market, implying a stronger emphasis on other foreign entry modes than export and a redoubling of R&D assets between -in this case- a German Standort and an Asian one. Similarly, we conclude that succeeding in Asia is becoming less and less a question of following a trickling up strategy (positioning oneself first in lower-end market segments and moving up gradually) as the continent is acquiring a lead market status for several high-tech industries.

Keywords: market insidership, Hidden Champions, emerging Asia, regional headquarters

JEL Classification: F23, D21, L21

Suggested Citation

Venohr, Bernd and Kamp, Bart, Global Niche Market Leaders in Emerging Asia and the Necessity to Become Market Insiders (December 3, 2018). Ekonomiaz Revista Vasca de Economía N.º 95, 1.º semestre, 2019, Available at SSRN: https://ssrn.com/abstract=3404638

Bernd Venohr (Contact Author)

Berlin School of Economics and Law ( email )

Badensche Strasse 50-51
Berlin, D-10825
Germany

Bart Kamp

University of Deusto - Basque Institute of Competitiveness ( email )

Mundaiz 50
San Sebastián, 20012
Spain

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
30
Abstract Views
332
PlumX Metrics