e demand for computer equipment has increased significantly, and Hewlett-Packard, IBM and Compaq have been well-positioned to take advantage of the demand.
Klebnikov's article points out the importance of recognizing where emerging markets are located and what types of products are appropriate for the markets. Companies such as Hewlett-Packard are doing well in the former Soviet Union not because of luck, but because they saw an opportunity for their products and pursued that opportunity. This is a critical success factor for those companies trying to succeed in these emerging markets.
Some American companies have put aside the idea that local companies have a strong advantage over exporters and are going after emerging markets with complete personal computer systems. This is the case with Cisco Systems, which has seen its "intercontinental" sales double for the past several years and which considers emerging markets to be the focal point of its sales strategy in the 1990s and the cornerstone of its strategy for the coming decade.
Cisco Systems and other companies recognize that while the economy of Japan (and the market for personal computers) is largely mature, there are other Asian "tigers" which are emerging with strong growth potential. Companies which are selling complete personal computers rather than just components are using the same rationale that they use in other markets: convenience, economy and reliability. At the same time as companies are targeting emerging markets in Asia, they are also concentrating on Latin America, an area where demand for personal computers increased at 14 percent in 1995.
The risks in these countries can be considerable, however, and Apple Computer has an individual dedicated to its Asian markets and a separate individual responsible for the Latin American markets. Natural disasters (such as volcanic eruptions) and political turmoil can have more serious effects in emerging mar...