The market of the Republic of Azerbaijan can be defined as an emerging market in an economy in transition. There is hardly any literature directly related to the Azerbaijani market that can serve as a good source for identifying business strategies to pursue in this market. But since the Azerbaijani market has all the main characteristics of other emerging markets, any literature relating to emerging markets or transition economies can be reviewed to provide businesses with the necessary information on how to succeed in this market. The term emerging markets is used to define markets in developing countries that are growing very quickly and are in the process of industrialization. This term covers many countries over a wide geographic area from Latin America to Asia. These countries are neither fully developed nor newly industrialized countries. The main characteristics of these countries are that their economies are growing rapidly; they are generally rich in natural resources, the GDP rate is very high, and people in these countries are able to purchase goods and services that they were previously unable to purchase. These markets therefore offer new customers and excellent market opportunities to foreign companies. But it should be noted that investing generally involves risks and doing business is not easy in emerging markets. Transition economies can be explained as a shift from a centralized economy to a free market economy. These economies are experiencing economic liberalization, where prices are set by market forces, macroeconomic stabilization, where high inflation is controlled, privatization of state-owned enterprises and the creation of a financial sector to simplify the movement of private capital (Lakatos GM 2008). In particular, the existence of private property rights is...... middle of paper...... no alternative to these strategies. The 2007 Delaitte Manufacturing Industry Group report provides companies with valuable insights into emerging markets. In this report, the importance of a special strategy for emerging markets is strongly emphasized and it is stated that making minor adjustments to existing products, reducing prices and replicating existing distribution channels is not a good strategy for these markets. In this study, researchers take a different approach and argue that to achieve sustainable competitive success in emerging markets, companies must develop business strategies based on innovation. Being innovative in emerging markets means offering unique products or services at a much lower price to meet the needs and lower purchasing power of most buyers in emerging markets (Delaitte Manufacturing Industry Group report)., 2007)