A key challenge will be to create flexible and adaptable supply chains that can serve both types of markets while optimizing sales and margins. In high-growth emerging economies, this means delivering rapidly increasing volumes of low-cost and sometimes low-margin products profitably — even in the face of poor infrastructure and convoluted distribution channels. In the low-growth developed economies of Western Europe, the United States and Japan, companies must defend or steal market share by providing better, faster innovation and exceptional service without sacrificing profit margins.