Discovery Health, Woolworths ‘winning at home’
Thursday, July 17, 2014
These emerging market companies are giving multinationals a run for their money – BCG.
JOHANNESBURG – Discovery Health and Woolworths have been included in a list of 50 emerging market companies that are mainly focused on their home market, but have been very successful.
The list, compiled by The Boston Consulting Group (BCG) for its 2014 BCG Local Dynamos report, includes 27 companies from Bric (Brazil, Russia, India and China) countries while the rest are from other emerging markets. Six businesses are from Africa.
Mia von Koschitzky Kimani, project leader in BCG’s Johannesburg office, explains that the list is representative but not exhaustive.
“Local dynamos” are emerging market firms that have succeeded by staying home and beating both multinationals and local, often state-owned companies. While the companies don’t necessarily operate exclusively in their home market, they have used it as the growth engine for their business.
Von Koschitzky Kimani says Discovery Health has proved itself with a very innovative business model, especially the Vitality program. The program attracts members with a particular profile depending on the offering, which may include a discounted gym membership or subsidised groceries. The model is now being replicated in a number of countries around the world. Some business schools have even taken it up as a case study for their students.
- Health Care