SlideShare a Scribd company logo
1 of 1
Some challengers are feeling the pressure as they
expand overseas
RECENT HEADWINDS
From 2012 through 2013,
revenue growth slowed by two-
thirds, a much steeper pullback
than experienced by the
nonfinancial S&P 500
REVENUE GROWTH
At the same time, their
margin slipped and is now
lower than that of the
nonfinancial S&P 500
PROFIT MARGIN
%
13%
3%
17%
6
GLOBAL
CHALLENGERS
NONFINANCIAL
S&P 500
INNOVATION & TALENT
To regain their momentum, global challengers
increasingly will have to develop world-class capabilities
in many areas, especially innovation and talent
From 2008 to 2013, the global challengers increased their R&D
spending four times faster than the top 100 U.S. patent recipients,
but they still have a long way to go to catch up
Many challengers will face acute talent
shortages. In Indonesia, a 40 to 60 percent gap
between demand and supply of middle
managers will exist by 2020
FINANCIAL PERFORMANCE
Emerging markets remain the world’s growth engines
100 18countries
from
companies
Companies within these markets that are riding this wave
of growth and winning by expanding overseas
THE GLOBAL CHALLENGERS
For the first time, the global challengers
include a quick-serve chain and two wine-and-
spirits companies—companies that appeal to
middle-class tastes
Only eight challengers from the 2013 list dropped off, suggesting
greater stability and resiliency
Five previous challengers “graduated” to become global leaders, tied for the
largest number ever
The long-term financial performance
of the global challengers has been outstanding
GLOBAL
CHALLENGERS
From 2000 through 2013, their
revenues grew three times
faster than those of the
nonfinancial S&P 500
ANNUAL
REVENUE GROWTH
During those years, their
average profit (EBIT) margin
was 50 percent higher than that
of the nonfinancial S&P 500
AVERAGE
PROFIT MARGIN
18%
18%
6%
12%
NONFINANCIAL
S&P 500
China
India
Chile ColombiaArgentina
QatarPhilippines
Russia
Mexico
Turkey
Malaysia
South Africa
Indonesia
UAEThailand
Brazil
Saudi Arabia
Egypt
In China, India, Indonesia, and
Brazil alone,
people will enter the middle and
affluent class during those years
730 million
$11 trillion,
Between 2010 and 2020, more
than two-thirds of the anticipated
growth in consumer spending, or
will originate
in emerging markets
2008-2013
R&D spending growth
2013
Average R&D spending
Talent shortage in 2020
Top 100 U.S. patent recipients
Global challengers
* Countries represented on the original 2006 BCG global challengers list
$2.7billion
$270million
FROM GLOBAL CHALLENGERS
TO GLOBAL LEADERS
Read BCG’s latest insights, analysis, and viewpoints at bcgperspectives.com
© The Boston Consulting Group, Inc. 2014. All rights reserved.
To find the latest BCG content and register to receive e-alerts on this topic or others,
please visit bcgperspectives.com. Please direct questions to socialmedia@bcg.com.

More Related Content

Viewers also liked

Role of IT in Mangement by Prof. Amit Chandra - GSBA College
Role of IT in Mangement by Prof. Amit Chandra - GSBA CollegeRole of IT in Mangement by Prof. Amit Chandra - GSBA College
Role of IT in Mangement by Prof. Amit Chandra - GSBA CollegeAmit Chandra
 
Public Opinion Landscape - Election 2016
Public Opinion Landscape  - Election 2016 Public Opinion Landscape  - Election 2016
Public Opinion Landscape - Election 2016 GloverParkGroup
 
기조발제 황상민 다양성이 경쟁력이다 인쇄용
기조발제 황상민 다양성이 경쟁력이다 인쇄용기조발제 황상민 다양성이 경쟁력이다 인쇄용
기조발제 황상민 다양성이 경쟁력이다 인쇄용gojipcap
 
Very Technology: Marketing on Mobile Platforms
Very Technology: Marketing on Mobile PlatformsVery Technology: Marketing on Mobile Platforms
Very Technology: Marketing on Mobile PlatformsBranded Ltd
 

Viewers also liked (6)

Role of IT in Mangement by Prof. Amit Chandra - GSBA College
Role of IT in Mangement by Prof. Amit Chandra - GSBA CollegeRole of IT in Mangement by Prof. Amit Chandra - GSBA College
Role of IT in Mangement by Prof. Amit Chandra - GSBA College
 
Fotos 1°
Fotos 1°Fotos 1°
Fotos 1°
 
Workshop Usability
Workshop UsabilityWorkshop Usability
Workshop Usability
 
Public Opinion Landscape - Election 2016
Public Opinion Landscape  - Election 2016 Public Opinion Landscape  - Election 2016
Public Opinion Landscape - Election 2016
 
기조발제 황상민 다양성이 경쟁력이다 인쇄용
기조발제 황상민 다양성이 경쟁력이다 인쇄용기조발제 황상민 다양성이 경쟁력이다 인쇄용
기조발제 황상민 다양성이 경쟁력이다 인쇄용
 
Very Technology: Marketing on Mobile Platforms
Very Technology: Marketing on Mobile PlatformsVery Technology: Marketing on Mobile Platforms
Very Technology: Marketing on Mobile Platforms
 

More from Boston Consulting Group

Sources of advantage in Regulatory Filing Management
Sources of advantage in Regulatory Filing Management Sources of advantage in Regulatory Filing Management
Sources of advantage in Regulatory Filing Management Boston Consulting Group
 
What’s Chipping Away at Automotive Production
What’s Chipping Away at Automotive ProductionWhat’s Chipping Away at Automotive Production
What’s Chipping Away at Automotive ProductionBoston Consulting Group
 
Urban Mobility Is Evolving in Unexpected Ways Due to COVID-19
Urban Mobility Is Evolving in Unexpected Ways Due to COVID-19Urban Mobility Is Evolving in Unexpected Ways Due to COVID-19
Urban Mobility Is Evolving in Unexpected Ways Due to COVID-19Boston Consulting Group
 
Win The Fight: Crush and Contain for Safer Reopening
Win The Fight: Crush and Contain for Safer Reopening Win The Fight: Crush and Contain for Safer Reopening
Win The Fight: Crush and Contain for Safer Reopening Boston Consulting Group
 
Seismic shifts: Retail banking in the wake of COVID-19
Seismic shifts: Retail banking in the wake of COVID-19Seismic shifts: Retail banking in the wake of COVID-19
Seismic shifts: Retail banking in the wake of COVID-19Boston Consulting Group
 
What Does the Recovery of Demand for Urban Mobility Look Like Post-COVID-19?
What Does the Recovery of Demand for Urban Mobility Look Like Post-COVID-19?What Does the Recovery of Demand for Urban Mobility Look Like Post-COVID-19?
What Does the Recovery of Demand for Urban Mobility Look Like Post-COVID-19?Boston Consulting Group
 
Retail Banking in the New Reality – Summary Survey Findings
Retail Banking in the New Reality – Summary Survey FindingsRetail Banking in the New Reality – Summary Survey Findings
Retail Banking in the New Reality – Summary Survey FindingsBoston Consulting Group
 
Unlocking the Hidden Value in Securities Services
Unlocking the Hidden Value in Securities ServicesUnlocking the Hidden Value in Securities Services
Unlocking the Hidden Value in Securities ServicesBoston Consulting Group
 
Navigating the COVID-19 Crisis V2 - April 20
Navigating the COVID-19 Crisis V2 - April 20 Navigating the COVID-19 Crisis V2 - April 20
Navigating the COVID-19 Crisis V2 - April 20 Boston Consulting Group
 
COVID-19 Rapid Response Crisis Checklist
COVID-19 Rapid Response Crisis ChecklistCOVID-19 Rapid Response Crisis Checklist
COVID-19 Rapid Response Crisis ChecklistBoston Consulting Group
 
Covid-19 Is a Call for Retail Banks to Accelerate Digital Transformation
Covid-19 Is a Call for Retail Banks to Accelerate Digital TransformationCovid-19 Is a Call for Retail Banks to Accelerate Digital Transformation
Covid-19 Is a Call for Retail Banks to Accelerate Digital TransformationBoston Consulting Group
 
COVID-19 Rapid Response Checklist for Nonprofits
COVID-19 Rapid Response Checklist for NonprofitsCOVID-19 Rapid Response Checklist for Nonprofits
COVID-19 Rapid Response Checklist for NonprofitsBoston Consulting Group
 
COVID-19: Sustaining Liquidity/Funding Management and Treasury Operations in ...
COVID-19: Sustaining Liquidity/Funding Management and Treasury Operations in ...COVID-19: Sustaining Liquidity/Funding Management and Treasury Operations in ...
COVID-19: Sustaining Liquidity/Funding Management and Treasury Operations in ...Boston Consulting Group
 

More from Boston Consulting Group (20)

Sources of advantage in Regulatory Filing Management
Sources of advantage in Regulatory Filing Management Sources of advantage in Regulatory Filing Management
Sources of advantage in Regulatory Filing Management
 
Green Venture Opportunities
Green Venture Opportunities Green Venture Opportunities
Green Venture Opportunities
 
Reinvent M
Reinvent MReinvent M
Reinvent M
 
BCG Telco Sustainability Index
BCG Telco Sustainability IndexBCG Telco Sustainability Index
BCG Telco Sustainability Index
 
BCG Telco Sustainability Index
BCG Telco Sustainability IndexBCG Telco Sustainability Index
BCG Telco Sustainability Index
 
What’s Chipping Away at Automotive Production
What’s Chipping Away at Automotive ProductionWhat’s Chipping Away at Automotive Production
What’s Chipping Away at Automotive Production
 
Urban Mobility Is Evolving in Unexpected Ways Due to COVID-19
Urban Mobility Is Evolving in Unexpected Ways Due to COVID-19Urban Mobility Is Evolving in Unexpected Ways Due to COVID-19
Urban Mobility Is Evolving in Unexpected Ways Due to COVID-19
 
Win The Fight: Crush and Contain for Safer Reopening
Win The Fight: Crush and Contain for Safer Reopening Win The Fight: Crush and Contain for Safer Reopening
Win The Fight: Crush and Contain for Safer Reopening
 
Seismic shifts: Retail banking in the wake of COVID-19
Seismic shifts: Retail banking in the wake of COVID-19Seismic shifts: Retail banking in the wake of COVID-19
Seismic shifts: Retail banking in the wake of COVID-19
 
Driving Change in Racial Equity
Driving Change in Racial Equity Driving Change in Racial Equity
Driving Change in Racial Equity
 
What Does the Recovery of Demand for Urban Mobility Look Like Post-COVID-19?
What Does the Recovery of Demand for Urban Mobility Look Like Post-COVID-19?What Does the Recovery of Demand for Urban Mobility Look Like Post-COVID-19?
What Does the Recovery of Demand for Urban Mobility Look Like Post-COVID-19?
 
Retail Banking in the New Reality – Summary Survey Findings
Retail Banking in the New Reality – Summary Survey FindingsRetail Banking in the New Reality – Summary Survey Findings
Retail Banking in the New Reality – Summary Survey Findings
 
2019 CPG Growth Leaders Report
2019 CPG Growth Leaders Report2019 CPG Growth Leaders Report
2019 CPG Growth Leaders Report
 
Unlocking the Hidden Value in Securities Services
Unlocking the Hidden Value in Securities ServicesUnlocking the Hidden Value in Securities Services
Unlocking the Hidden Value in Securities Services
 
Navigating the COVID-19 Crisis V2 - April 20
Navigating the COVID-19 Crisis V2 - April 20 Navigating the COVID-19 Crisis V2 - April 20
Navigating the COVID-19 Crisis V2 - April 20
 
Navigating the COVID-19 Crisis V1
Navigating the COVID-19 Crisis V1Navigating the COVID-19 Crisis V1
Navigating the COVID-19 Crisis V1
 
COVID-19 Rapid Response Crisis Checklist
COVID-19 Rapid Response Crisis ChecklistCOVID-19 Rapid Response Crisis Checklist
COVID-19 Rapid Response Crisis Checklist
 
Covid-19 Is a Call for Retail Banks to Accelerate Digital Transformation
Covid-19 Is a Call for Retail Banks to Accelerate Digital TransformationCovid-19 Is a Call for Retail Banks to Accelerate Digital Transformation
Covid-19 Is a Call for Retail Banks to Accelerate Digital Transformation
 
COVID-19 Rapid Response Checklist for Nonprofits
COVID-19 Rapid Response Checklist for NonprofitsCOVID-19 Rapid Response Checklist for Nonprofits
COVID-19 Rapid Response Checklist for Nonprofits
 
COVID-19: Sustaining Liquidity/Funding Management and Treasury Operations in ...
COVID-19: Sustaining Liquidity/Funding Management and Treasury Operations in ...COVID-19: Sustaining Liquidity/Funding Management and Treasury Operations in ...
COVID-19: Sustaining Liquidity/Funding Management and Treasury Operations in ...
 

Recently uploaded

MAHA Global and IPR: Do Actions Speak Louder Than Words?
MAHA Global and IPR: Do Actions Speak Louder Than Words?MAHA Global and IPR: Do Actions Speak Louder Than Words?
MAHA Global and IPR: Do Actions Speak Louder Than Words?Olivia Kresic
 
Call Girls In Radisson Blu Hotel New Delhi Paschim Vihar ❤️8860477959 Escorts...
Call Girls In Radisson Blu Hotel New Delhi Paschim Vihar ❤️8860477959 Escorts...Call Girls In Radisson Blu Hotel New Delhi Paschim Vihar ❤️8860477959 Escorts...
Call Girls In Radisson Blu Hotel New Delhi Paschim Vihar ❤️8860477959 Escorts...lizamodels9
 
/:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In...
/:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In.../:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In...
/:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In...lizamodels9
 
International Business Environments and Operations 16th Global Edition test b...
International Business Environments and Operations 16th Global Edition test b...International Business Environments and Operations 16th Global Edition test b...
International Business Environments and Operations 16th Global Edition test b...ssuserf63bd7
 
Cybersecurity Awareness Training Presentation v2024.03
Cybersecurity Awareness Training Presentation v2024.03Cybersecurity Awareness Training Presentation v2024.03
Cybersecurity Awareness Training Presentation v2024.03DallasHaselhorst
 
NewBase 19 April 2024 Energy News issue - 1717 by Khaled Al Awadi.pdf
NewBase  19 April  2024  Energy News issue - 1717 by Khaled Al Awadi.pdfNewBase  19 April  2024  Energy News issue - 1717 by Khaled Al Awadi.pdf
NewBase 19 April 2024 Energy News issue - 1717 by Khaled Al Awadi.pdfKhaled Al Awadi
 
8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
8447779800, Low rate Call girls in Uttam Nagar Delhi NCR8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
8447779800, Low rate Call girls in Uttam Nagar Delhi NCRashishs7044
 
Ten Organizational Design Models to align structure and operations to busines...
Ten Organizational Design Models to align structure and operations to busines...Ten Organizational Design Models to align structure and operations to busines...
Ten Organizational Design Models to align structure and operations to busines...Seta Wicaksana
 
Innovation Conference 5th March 2024.pdf
Innovation Conference 5th March 2024.pdfInnovation Conference 5th March 2024.pdf
Innovation Conference 5th March 2024.pdfrichard876048
 
Investment in The Coconut Industry by Nancy Cheruiyot
Investment in The Coconut Industry by Nancy CheruiyotInvestment in The Coconut Industry by Nancy Cheruiyot
Investment in The Coconut Industry by Nancy Cheruiyotictsugar
 
Annual General Meeting Presentation Slides
Annual General Meeting Presentation SlidesAnnual General Meeting Presentation Slides
Annual General Meeting Presentation SlidesKeppelCorporation
 
Lowrate Call Girls In Sector 18 Noida ❤️8860477959 Escorts 100% Genuine Servi...
Lowrate Call Girls In Sector 18 Noida ❤️8860477959 Escorts 100% Genuine Servi...Lowrate Call Girls In Sector 18 Noida ❤️8860477959 Escorts 100% Genuine Servi...
Lowrate Call Girls In Sector 18 Noida ❤️8860477959 Escorts 100% Genuine Servi...lizamodels9
 
Kenya’s Coconut Value Chain by Gatsby Africa
Kenya’s Coconut Value Chain by Gatsby AfricaKenya’s Coconut Value Chain by Gatsby Africa
Kenya’s Coconut Value Chain by Gatsby Africaictsugar
 
Keppel Ltd. 1Q 2024 Business Update Presentation Slides
Keppel Ltd. 1Q 2024 Business Update  Presentation SlidesKeppel Ltd. 1Q 2024 Business Update  Presentation Slides
Keppel Ltd. 1Q 2024 Business Update Presentation SlidesKeppelCorporation
 
Kenya Coconut Production Presentation by Dr. Lalith Perera
Kenya Coconut Production Presentation by Dr. Lalith PereraKenya Coconut Production Presentation by Dr. Lalith Perera
Kenya Coconut Production Presentation by Dr. Lalith Pereraictsugar
 
8447779800, Low rate Call girls in Shivaji Enclave Delhi NCR
8447779800, Low rate Call girls in Shivaji Enclave Delhi NCR8447779800, Low rate Call girls in Shivaji Enclave Delhi NCR
8447779800, Low rate Call girls in Shivaji Enclave Delhi NCRashishs7044
 
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort ServiceCall US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort Servicecallgirls2057
 
Youth Involvement in an Innovative Coconut Value Chain by Mwalimu Menza
Youth Involvement in an Innovative Coconut Value Chain by Mwalimu MenzaYouth Involvement in an Innovative Coconut Value Chain by Mwalimu Menza
Youth Involvement in an Innovative Coconut Value Chain by Mwalimu Menzaictsugar
 
8447779800, Low rate Call girls in Saket Delhi NCR
8447779800, Low rate Call girls in Saket Delhi NCR8447779800, Low rate Call girls in Saket Delhi NCR
8447779800, Low rate Call girls in Saket Delhi NCRashishs7044
 

Recently uploaded (20)

MAHA Global and IPR: Do Actions Speak Louder Than Words?
MAHA Global and IPR: Do Actions Speak Louder Than Words?MAHA Global and IPR: Do Actions Speak Louder Than Words?
MAHA Global and IPR: Do Actions Speak Louder Than Words?
 
Corporate Profile 47Billion Information Technology
Corporate Profile 47Billion Information TechnologyCorporate Profile 47Billion Information Technology
Corporate Profile 47Billion Information Technology
 
Call Girls In Radisson Blu Hotel New Delhi Paschim Vihar ❤️8860477959 Escorts...
Call Girls In Radisson Blu Hotel New Delhi Paschim Vihar ❤️8860477959 Escorts...Call Girls In Radisson Blu Hotel New Delhi Paschim Vihar ❤️8860477959 Escorts...
Call Girls In Radisson Blu Hotel New Delhi Paschim Vihar ❤️8860477959 Escorts...
 
/:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In...
/:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In.../:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In...
/:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In...
 
International Business Environments and Operations 16th Global Edition test b...
International Business Environments and Operations 16th Global Edition test b...International Business Environments and Operations 16th Global Edition test b...
International Business Environments and Operations 16th Global Edition test b...
 
Cybersecurity Awareness Training Presentation v2024.03
Cybersecurity Awareness Training Presentation v2024.03Cybersecurity Awareness Training Presentation v2024.03
Cybersecurity Awareness Training Presentation v2024.03
 
NewBase 19 April 2024 Energy News issue - 1717 by Khaled Al Awadi.pdf
NewBase  19 April  2024  Energy News issue - 1717 by Khaled Al Awadi.pdfNewBase  19 April  2024  Energy News issue - 1717 by Khaled Al Awadi.pdf
NewBase 19 April 2024 Energy News issue - 1717 by Khaled Al Awadi.pdf
 
8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
8447779800, Low rate Call girls in Uttam Nagar Delhi NCR8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
 
Ten Organizational Design Models to align structure and operations to busines...
Ten Organizational Design Models to align structure and operations to busines...Ten Organizational Design Models to align structure and operations to busines...
Ten Organizational Design Models to align structure and operations to busines...
 
Innovation Conference 5th March 2024.pdf
Innovation Conference 5th March 2024.pdfInnovation Conference 5th March 2024.pdf
Innovation Conference 5th March 2024.pdf
 
Investment in The Coconut Industry by Nancy Cheruiyot
Investment in The Coconut Industry by Nancy CheruiyotInvestment in The Coconut Industry by Nancy Cheruiyot
Investment in The Coconut Industry by Nancy Cheruiyot
 
Annual General Meeting Presentation Slides
Annual General Meeting Presentation SlidesAnnual General Meeting Presentation Slides
Annual General Meeting Presentation Slides
 
Lowrate Call Girls In Sector 18 Noida ❤️8860477959 Escorts 100% Genuine Servi...
Lowrate Call Girls In Sector 18 Noida ❤️8860477959 Escorts 100% Genuine Servi...Lowrate Call Girls In Sector 18 Noida ❤️8860477959 Escorts 100% Genuine Servi...
Lowrate Call Girls In Sector 18 Noida ❤️8860477959 Escorts 100% Genuine Servi...
 
Kenya’s Coconut Value Chain by Gatsby Africa
Kenya’s Coconut Value Chain by Gatsby AfricaKenya’s Coconut Value Chain by Gatsby Africa
Kenya’s Coconut Value Chain by Gatsby Africa
 
Keppel Ltd. 1Q 2024 Business Update Presentation Slides
Keppel Ltd. 1Q 2024 Business Update  Presentation SlidesKeppel Ltd. 1Q 2024 Business Update  Presentation Slides
Keppel Ltd. 1Q 2024 Business Update Presentation Slides
 
Kenya Coconut Production Presentation by Dr. Lalith Perera
Kenya Coconut Production Presentation by Dr. Lalith PereraKenya Coconut Production Presentation by Dr. Lalith Perera
Kenya Coconut Production Presentation by Dr. Lalith Perera
 
8447779800, Low rate Call girls in Shivaji Enclave Delhi NCR
8447779800, Low rate Call girls in Shivaji Enclave Delhi NCR8447779800, Low rate Call girls in Shivaji Enclave Delhi NCR
8447779800, Low rate Call girls in Shivaji Enclave Delhi NCR
 
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort ServiceCall US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
 
Youth Involvement in an Innovative Coconut Value Chain by Mwalimu Menza
Youth Involvement in an Innovative Coconut Value Chain by Mwalimu MenzaYouth Involvement in an Innovative Coconut Value Chain by Mwalimu Menza
Youth Involvement in an Innovative Coconut Value Chain by Mwalimu Menza
 
8447779800, Low rate Call girls in Saket Delhi NCR
8447779800, Low rate Call girls in Saket Delhi NCR8447779800, Low rate Call girls in Saket Delhi NCR
8447779800, Low rate Call girls in Saket Delhi NCR
 

From Global Challengers to Global Leaders

  • 1. Some challengers are feeling the pressure as they expand overseas RECENT HEADWINDS From 2012 through 2013, revenue growth slowed by two- thirds, a much steeper pullback than experienced by the nonfinancial S&P 500 REVENUE GROWTH At the same time, their margin slipped and is now lower than that of the nonfinancial S&P 500 PROFIT MARGIN % 13% 3% 17% 6 GLOBAL CHALLENGERS NONFINANCIAL S&P 500 INNOVATION & TALENT To regain their momentum, global challengers increasingly will have to develop world-class capabilities in many areas, especially innovation and talent From 2008 to 2013, the global challengers increased their R&D spending four times faster than the top 100 U.S. patent recipients, but they still have a long way to go to catch up Many challengers will face acute talent shortages. In Indonesia, a 40 to 60 percent gap between demand and supply of middle managers will exist by 2020 FINANCIAL PERFORMANCE Emerging markets remain the world’s growth engines 100 18countries from companies Companies within these markets that are riding this wave of growth and winning by expanding overseas THE GLOBAL CHALLENGERS For the first time, the global challengers include a quick-serve chain and two wine-and- spirits companies—companies that appeal to middle-class tastes Only eight challengers from the 2013 list dropped off, suggesting greater stability and resiliency Five previous challengers “graduated” to become global leaders, tied for the largest number ever The long-term financial performance of the global challengers has been outstanding GLOBAL CHALLENGERS From 2000 through 2013, their revenues grew three times faster than those of the nonfinancial S&P 500 ANNUAL REVENUE GROWTH During those years, their average profit (EBIT) margin was 50 percent higher than that of the nonfinancial S&P 500 AVERAGE PROFIT MARGIN 18% 18% 6% 12% NONFINANCIAL S&P 500 China India Chile ColombiaArgentina QatarPhilippines Russia Mexico Turkey Malaysia South Africa Indonesia UAEThailand Brazil Saudi Arabia Egypt In China, India, Indonesia, and Brazil alone, people will enter the middle and affluent class during those years 730 million $11 trillion, Between 2010 and 2020, more than two-thirds of the anticipated growth in consumer spending, or will originate in emerging markets 2008-2013 R&D spending growth 2013 Average R&D spending Talent shortage in 2020 Top 100 U.S. patent recipients Global challengers * Countries represented on the original 2006 BCG global challengers list $2.7billion $270million FROM GLOBAL CHALLENGERS TO GLOBAL LEADERS Read BCG’s latest insights, analysis, and viewpoints at bcgperspectives.com © The Boston Consulting Group, Inc. 2014. All rights reserved. To find the latest BCG content and register to receive e-alerts on this topic or others, please visit bcgperspectives.com. Please direct questions to socialmedia@bcg.com.