Blog: Risk and emerging markets
Dave Leggett | 14 December 2007
You have to be in emerging markets but they can be risky places, subject to economic and market volatility, right? Think of the last big economic crisis in South America and the market collapse in Argentina at the beginning of the decade. Back then a few manufacturers were suddenly saddled with high overcapacity in Mercosur after big investments made in the mid-late 1990s.
Wouldn't an experience like that encourage some extra caution now?
Not really. Emerging markets are where industry volume growth is and you have to be there and simply accept the risks.
I really liked this line that Rob Golding included in his latest piece about PSA's emerging markets strategy. Rob says it was spoken by 'a very grown-up GM board member five years ago':
"If you don't invest in the new markets and they go up, you look a fool. If you do invest and they go down everyone is in the same boat and that's OK."
Act global, think local – it’s a good philosophy and PSA’s Christian Streiff seems to be a believer, as he sets ambitious growth targets for Mercosur. Mark Bursa reports...
I'm starting to get a small idea of the scale of things here in China, but really, I'm only scratching the surface of this vast country....