Describetheinnovationrevolutionthatistakingplaceintheemergingeconomiesandexaminethene.docVIP

Page  PAGE 6 of  NUMPAGES 6 Describe the innovation revolution that is taking place in the emerging economies and examine the new economic opportunities this is present to Western economies. Emerging economies are low-income, rapid-growth countries using innovation revolution such as frugal innovation, reverse innovation and business innovation as their primary engine of growth. In order to make a profit out of emerging-markets, companies adapt their products to consumers with unceasing research and design, all-pervasive distribution, all-sided price range and modern corporate system (The Economist, 2010). And these emerging-market companies are increasingly taking over global markets. The innovation revolution that plays a notable role in this great change are having a significant impact on business today and also bring a lot of opportunities to Western economies. This essay will describe the innovation revolution from emerging economies first, and then examine the opportunities this is present to Western economies. The first remarkable innovation that is taking place in emerging economies should be frugal innovation, which means that companies are not only improving their existing products, but are also redesigning products to meet the needs of low-income consumers. It is noteworthy that frugal products do not mean inferior goods that were manufactured by cutting costs to the bone. In face, they are products that get rid of  HYPERLINK /search?q=unnecessarykeyfrom=E2Ctranslation unnecessary functions, just concentrate on bare essentials. In general, frugal products are often containing high-tech, long-lived quality, and also environmentally friendly thoughts. For instance, Nokia sells the cheapest mobile phone with functions including flashlights to deal with power cuts, multiple phone books when different people using it. Additionally, frugal innovation has its own way to cut down cost. First is to outsource business as much as possible except  HYPERLIN