Distinctive capabilities that enable companies to achieve high performance in India's hinterland

A growing number of companies, large and small, are steadily transforming their rural operations into viable profit centers. They have been successful in selling to unsophisticated buyers in geographically dispersed locations using appropriate “reach strategies.” So what can other organizations seeking to achieve high performance learn from these leaders? And how can they think in terms of applying the lessons learned to other rural markets worldwide? It quickly became clear that supply chain and distribution efficiency is the most important success factor, followed closely by product localization and innovation. Essentially, the rural market leaders have mastered product development and pricing, arrived at an optimal channel mix, and set up local partner networks that work well and generate revenue. They have been able to accelerate the adoption of their products and ensure consistent availability by investing in comprehensive market development and by making their supply chains as efficient as possible. And, they have effectively utilized technology and social networks to achieve the scale necessary to reach diverse consumer segments across rural India. And, in some cases, they are taking lessons learned in India and applying successfully in other emerging markets. The framework is headed by market focus and position involving selection of rural markets a combination of products and geographies, which can best generate long-term value for the company. This decision to invest in rural markets is intrinsic to the core strategy of a company and is best guided by the company's long-term vision and strategic fit. This paper has focused on the capabilities through which an organization can achieve high performance in the rural India.