Building network capabilities in turbulent competitive environments : business success stories from the BRICs

In 2012 and 2013, Psy's Gangnam Style and Gentleman received worldwide attention with their unique appeal in global contents market. His success illustrates the integrative power of the open network via YouTube and individual core competence based on his peculiar music and dance styles. In a sense, his case is an example of building network capability in a turbulent competitive environment. With prolonged recession in advanced economies, emerging markets--BRIC (Brazil, Russia, India, and China) in particular-- are potential engines for global market growth. Recently, their performance is not as impressively sustaining as anticipated. The growth rates in India, Brazil, and Russia are somewhat slowed down. Even so, the enormous size of the customer base from these emerging markets is the strategic concern of global business firms. Their economic demographic structure is changing from a typical pyramid shape with a huge bottom tier of poor to a diamond ring structure with a tremendous consumer power base in the middle. According to Japanese Economic Industry Bureau Statistics, the total number of households in Asia with annual disposable income between $5,000 and $35,000 is 140 million in 1990, 220 million in 2000, and 880 million by 2008. This reflects the rapid growth of the middle income groups from China, India, and the Association of South East Asian Nations (ASEAN). From global perspective, the large share of middle income groups is distributed in these areas. With rapid economic growth and increase in customer base, these economies hold amazing purchasing power potential for new products and services.