RESEARCH REPORT
Winning the unconventional growth race
5-MINUTE READ
April 28, 2023
In brief
- Despite global volatility, 73% of surveyed business leaders expect to achieve double-digit growth by 2025.
- One possible reason is that they see long-term growth potential in two unconventional terrains: underserved markets and the green economy.
- Yet, most of these optimistic companies are not ready, nor are they getting ready, to unlock huge growth while venturing into unfamiliar markets.
- But a handful are making three crucial moves to win this unconventional growth race.
Optimism due to two unconventional growth terrains
Our recent survey of senior executives of 1,200 large companies in Asia Pacific, Latin America, Middle East and South Africa reveals that the majority feel upbeat about the future. More than 70% expect their companies to achieve double-digit revenue growth by 2025.
Given prevailing headwinds—such as the uncertain macroeconomic environment, the global energy crisis and higher cost of borrowing—what accounts for this optimism?
The majority of our respondents have been looking into the distance and seeing long term growth potential in two unconventional terrains: underserved markets and the green economy.
91%
Expect their companies to pursue opportunities in two less familiar terrains—the developing green economy and underserved markets.
52%
Believe that entering both terrains by 2030 will be critical to their company’s ability to become a market leader.
However, only a few leaders have been rethinking not just where but how they will go for growth in the long-term, as they embark on a journey of total enterprise reinvention. Most leaders remain focused on transforming parts of their business rather than the whole.
Growing off the beaten path
The green economy has huge growth potential, especially in Asia Pacific, Latin America, Middle East and South Africa. Collectively, these regions have the highest carbon footprint—accounting for 66% of global greenhouse gas emissions and 75% of global coal consumption. They also face escalating biodiversity loss, pollution and waste generation. Companies that build products and services for protecting or restoring the environment will not only capture new growth opportunities, but also create tangible benefits for society and the environment.
Underserved markets refer to consumer segments that are overlooked, such as people with rare diseases, the elderly, minority entrepreneurs and people living in remote areas. Their needs are not well understood or adequately addressed. Solutions for these consumers require a different type of innovation and value mindset.
While strong growth prospects in underserved markets and the green economy give business leaders reason for confidence, it’s also good news for communities and the environment. Because when large companies commit their resources to solving tough challenges, they can scale their innovations to great social effect.
Playing by new growth rules
To help accelerate top-line growth in the coming years, companies need to see distant opportunities in new growth terrains as if they were close. Yet of the 1,200 companies we surveyed, a mere 13% have begun to shift both where they want to grow and how they plan to get there. These companies combine strong ambition with new directions plus bolder actions. They expect to deliver superior outcomes while expanding into both the developing green economy and underserved markets. They also have a track record of robust growth and aim to increase revenue by more than 20% per annum by 2025.
Sample = 1,200 senior executives
Source: Accenture C-level Executive Survey, 2022
Yet of the 1,200 companies we surveyed, a mere 13% have begun to shift both where they want to grow and how they plan to get there.
Our research indicates that succeeding in these new terrains will take an unconventional strategy that’s carefully implemented amid ongoing external disruption. Companies must use a very different approach to unlock growth—what we believe to be a calculated gambit underpinned by three crucial moves:
Harnessing the power of advanced tech
To define a new performance frontier, companies should identify and drive growth-oriented activities in new markets ahead of others. Advanced technology needs to be embedded into future growth-oriented activities from the start—harnessing the power of data, cloud and artificial intelligence to create breakthrough solutions or generate new lines of business.
2x
Companies playing by new growth rules are two times more likely to leverage data, cloud and AI for growth-oriented activities by 2025.
Unlocking multiple forms of value
Companies should pay attention to what matters, not just to their business, customers and employees, but also to society, their partners and the environment. They should track multiple non-financial forms of value because there is no long-term corporate success without creating boundless impact. Examples range from creating jobs for low-skilled talent and economic opportunities for small local suppliers or minority entrepreneurs, to using sustainable, recyclable and reusable materials for all product packaging.
87%
Survey respondents who believe that non-financial forms of value will be critical to their future financial success.
74%
Companies playing by new growth rules, measuring at least three non-financial forms of value (customer, environmental, societal, employee and partnership value)
Broadening their ability to innovate
There are two ways companies can create a foundation for innovation advantages. First, they can invest significantly in sustainability initiatives, a necessary step change to creating impact beyond their boundaries. While these investments will be used to create value for society and the environment, they will also increase brand equity with consumers and bring future financial value. Second, companies can form diverse partnerships, which gives them an early innovation advantage to co-invest and solve hard problems faster. More than half the companies playing by new growth rules expect to forge extensive ties with technology and science-based partners by 2025.
By acting today, a few companies are already pulling ahead in tomorrow’s race to market leadership. They plan to succeed in both the green economy and in underserved markets, and their strategies show us how to prepare for a future that’s radically different from the past.
What business leaders can do
Advance into new frontiers
Winning in the green economy and underserved markets will take a comprehensive approach. Look into actions that match your business needs and use them to create your own unconventional gambit.
The race to tomorrow’s valued opportunities is on
Companies that are rewriting the rules of growth will define a new performance frontier for themselves and map their routes to reinvention. Using the combined power of cloud, data and artificial intelligence to develop breakthrough solutions, they will create other lines of business and deliver what the world needs. With a foundation for innovation, they will drive performance in new directions to unlock growth opportunities that create value, not only for their business, customers and employees, but also for partners, society and the environment.
Those that use these volatile times to reinvent themselves will emerge as the winners of tomorrow. The race is on—it’s time to make your move.