Identify the most promising opportunities facing firms from developing markets. Dynamism creates opportunity as well as constraints - doing a case study and the topic is called "Value Chains: Where, When, and Why"

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If you want to identify the most promising opportunities for firms from developing markets, put yourself in their shoes and ask, "How can I bring my product or service to my chosen market in the most cost effective, potentially profitable way?" Consider that in light of your concern with market...

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dynamism and your focus on value chains, and you could answer, "By disrupting the market with a low-cost innovation or by adding value to existing products and services."

Developing markets are, by their nature, under-resourced when compared to developed ones. This means the firms originating there will on average have stricter financial constraints and higher-risk supply chains, even if they are world-beaters or very large. Those are disadvantages of market dynamism, because they slow down the firm's whole business model. But they don't have to suffer a disadvantage of human capital. That means they can take advantage of their market conditions by doing things established firms can't or won't do. That's their opportunity arising from dynamism. If a firm can leverage the constraints and the opportunities consistently, they can break into global markets and, in a sense, leave their developing market behind. The assumption here is that you're interested in firms which haven't done that yet, which have to work with the market they're given instead of making new ones beyond the scope of their home country.

Your study of value chains should start there. The "when, where and why" will come from an analysis of the costs and benefits of a particular market. That will point you to a set of decisions involving the firm's product or service, the target market, profitable price points, and entry and scale strategies. An excellent book about this problem, containing cases of big and small companies trying to survive in developing markets, is C.K. Prahalad's book, The Fortune at the Bottom of the Pyramid. See the article about it in the link below.

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Developing markets or emerging markets has several very unique opportunities. And in some way, emerging markets may have the greatest upside in the future. There are several reason for this.

First, emerging marketing are emerging. This is to say that these countries are rising. They are now becoming consumers, which means there is a huge internal market. For example, think of tourism in China by the Chinese. As the Chinese become wealthier, their own people will want to visit their major cities. This market will be huge in every way.

Second, emerging markets can get investments from more advanced economies and form profitable partnerships.

Third, may emerging economies have lot of natural resources. For example, some of the countries in South America have the greatest amount of resources like copper. The world will need copy to continue to build and so they will need more copper. So, if these countries monetize these commodities, they will be very profitable.

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Can someone help me please? - Identify the most promising opportunities facing companies from advanced markets.Dynamism creates opportunity as well as constraints.  I'm doing a case study and the topic is "Value Chains: Where, When, and Why" - hope this helps to explain my question

What a good question. Let me start by giving a quick definition of what a value chain is. In a word, a value chain is the process by which a company brings a product or service from its beginning stages to fruition.

Now in an advanced market, such as the United States, there are a few distinct benefits, which can help streamline things. First, in an advanced market, there is a lot of technology that can be used to make a company much more effective. This can truly help trim costs and make everything more effective. Second, an advanced market has the ability to get bids from other companies to get what they need at a reduced price as other companies vie against one another. Third, advanced markets are able to outsource certain areas of their company to other countries to save even more money. Finally, with an international market, there is also the upside of currency valuations.

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