The market of the Republic of Azerbaijan can be defined as an emerging market in the transition economy. There is almost no literature directly related to the Azerbaijan market that can be a good source for identifying business strategies that need to be pursued in this market. But since the Azerbaijan market has all the main characteristics of other emerging markets, all literature related to emerging markets or transition economies can be reviewed to provide companies 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 rapidly and are in the process of industrialization. This term covers many countries in 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 usually rich in natural resources, the GDP rate is very high, people in these countries are able to purchase goods and services that they were unable to purchase before. Therefore, these markets offer new customer base and great market opportunities to foreign companies. But it should be noted that investments usually involve risks and doing business is not easy in emerging markets. Transitional economies can be explained as a change in the economy from a centrally planned economy to a free market. These economies undergo economic liberalization, where prices are set by market forces, macroeconomic stabilization, where high inflation is controlled, the privatization of state-owned enterprises, and the creation of a financial sector in order to streamline the movement of private capital (Lakatos GM 2008). In particular, the existence of private property rights is... at the heart of the paper... no alternative to these strategies. The 2007 report from Delaitte's Manufacturing Industry Group provides companies with very useful 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 small changes to existing products, reducing prices and replicating existing distribution channels is not a good strategy for these markets. In this study, the researchers take a different approach and argue that to achieve sustainable competitive success in emerging markets, companies must develop innovation-based business strategies. Being innovative in emerging markets means offering unique products or services at a very low price to meet the needs and lower purchasing power of most emerging market buyers (Delaitte Manufacturing Industry Group report, 2007)