The 2008 BCG 100 New Global Challengers

The 2008 BCG 100 New Global Challengers

          
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The 2008 BCG 100 New Global Challengers

How Top Companies from Rapidly Developing Economies Are Changing the World
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  • This report focuses on areas of the world that are experiencing rapid economic growth and on the fast-growing companies operating within them. These rapidly developing economies (RDEs) are currently home to many excellent companies. The companies featured in this report merit particular attention from established industry leaders because they are the challengers that the incumbents will soon face in global markets—if they aren’t already confronting them. Incumbents will encounter these challengers as competitors, as customers, as candidates for partnering in mergers or acquisitions, and as potential acquirers. They are the new global challengers.

    The 2008 BCG 100 global challengers (“the BCG 100”) hail from some widely disparate but fast-growing economies. In general, RDEs have been gaining importance in the global economy at an accelerating pace. The 14 countries that are home to the BCG 100—Argentina, Brazil, Chile, China, Egypt, Hungary, India, Indonesia, Malaysia, Mexico, Poland, Russia, Thailand, and Turkey—accounted for 17.3 percent of real GDP worldwide in 2006, up from 15.7 percent in 2005 and 13.4 percent in 2000. Moreover, they command an increasing share of global trade. In 2006 China overtook the United States as the world’s second-largest exporter, behind only Germany; in 2008, if Chinese exports continue to grow at the astonishing rate of 27 percent per annum that they achieved in 2006, China will become the world’s largest exporter.

    Many RDEs are also developing closer economic ties with one another. For example, trade between China and India grew 38 percent in 2006. The mix of goods traded also shifted to include an increasing share of high-valued-added offerings, such as telecommunications products and IT services. Another indication of the increasing prominence of RDEs in the global economy is the level of foreign direct investment they receive. Across the 14 RDEs that are home to the BCG 100, this investment surged at a compound annual growth rate (CAGR) of almost 23 percent from 2004 through 2006, to reach $245 billion. In 2006 alone, the rate of growth was even higher, at 25 percent. (See Exhibit 1.)

    exhibit
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