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Archive for the ‘Articles’ Category« Previous EntriesWho is the next China?Monday, May 14th, 2012  China is a phenomenally important player in the world’s economy. The country does, of course, have a reputation as home to much of the world’s low-cost manufacturing, but this is not such an accurate reflection of its economic standing today; increasingly China is moving up the pecking order and shedding its reputation as the world’s workshop. All of which does perhaps beg the question, where will low-value manufacturing go next? Indonesia is one country creating a lot of interest in this regard. With a significant population, growing middle class and relatively stable government, it certainly ticks some of the required boxes, but some concerns persist, such as onerous labour regulations and weak infrastructure. Indeed, one trend that has been noted is for certain countries to carve out certain niches. Bangladesh and Cambodia, for example, are very much establishing themselves in the textile industry. Elsewhere, Vietnam is tipped by some to be the next stop for global supply chains, but others feel it is not living up to its potential for a number of reasons, among them a poor transportation infrastructure, political instability and high inflation. Meanwhile, manufacturing industries in countries such as Thailand and Malaysia, both of which produce a bigger share of sophisticated goods than China (particularly electronics and car parts) could actually find themselves threatened by Chinese manufacturers moving up the value chain – and therefore into their turf. With complex supply chains predicted to continue to fragment across multiple countries, specific industries are expected to gravitate towards countries with comparative advantages in that area. In summary, there is no one clear successor to China, but all Southeast Asian countries together might just stand a chance. — This blog is based on an article first appearing in China Economic Review. To read the article in full, please click here or to learn more about the potential of the Asia Pacific region for your business, visit our website. Research Shows The Impact Teachers Have On ALL Our LivesFriday, January 13th, 2012  A recent study conducted by Harvard University shows the importance of having a good teacher. So much so that the impact can be tracked throughout a student’s life not only from their chances of getting pregnant while they are teenagers but also to the likelihood of them going to University. The study, that was reported in The New York Times, also showed that the quality of your teacher can also affect your future earnings potential as an adult in later life. One economist stated that “by replacing a poor teacher with an average one would raise a single classroom’s lifetime earnings by more than $250,000”. Certainly food for thought! To read more about how B2B International can help your educational organisation provide comprehensive answers to many questions and challenges faced either through student satisfaction surveys, staff satisfaction surveys, brand surveys, facility evaluation research or assessment of the impact of central government changes in education then visit our website. Biggest Chinese BrandsWednesday, January 11th, 2012  The recently published 2012 BrandZ report on the Top 50 Most Valuable Chinese Brands found that the value of the top 50 Chinese brands has grown by 16 percent to US$325 billion, representing more than five percent of the Chinese economy. Combining both financial data and opinion gathered from interviews with over 35,000 Chinese consumers, the survey also indicated China’s shift from maker to innovator, the phenomenal rise of online and FMCG brands, and an increasingly brand savvy group of middle class consumers. The list includes China Mobile, the world’s largest telecommunications operator; the four major Chinese banks; and a number of consumer brands, such as Mengniu, Sunning and Lenovo. (Find out more by clicking here)
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Although there remains considerable debate as to which of these brands, if any, can become established as global brands, many Western competitors are beginning to realise the long-term threat from their new Asian competitors. In the face of stagnant economic growth in Europe and the US, and the lingering Euro-zone crisis, it is the Asia-Pacific region where many organizations are looking to try and substitute declining revenues elsewhere. The increasing power of Chinese brands within the Asia-Pacific region, not to mention other rapidly developing regions such as Africa, raises several questions for Western businesses intent on growing market share in new international markets: • How can Western brands compete effectively with strong Chinese brands in local Chinese markets? • Should premium-, mid- or low-end brand positioning be adopted in developing markets such as China? • How should Western brand propositions be adopted for the local Asian market? • What measures should be taken to defend brand position and market share in home markets from Chinese competition? • Which Chinese brands represent the most significant competitive threat? • How can social media in China be exploited to build brand presence? As Western corporations tackle these important issues, it is clear that the challenge of Chinese brands is only set to grow in the future. However, while this rise represents a challenge, many Western firms are also looking to take advantage of the opportunities presented by Chinese brands. As Chinese brands aspire to compete more effectively with their global competitors on the international stage, the demand for high quality suppliers, product components, and consultancy services has never been greater. While marketing to Chinese businesses brings its own set of particular challenges for the uninitiated, over the past few years Western firms have begun adapting to China’s unique environment and have made inroads selling to some of China’s largest firms. As Chinese brands continue on their relentless march forward, it will be those firms that are able to grasp the characteristics and requirements of Chinese organizations that are likely to see the greatest success in the long term. Developing Your 2012 Business StrategyWednesday, January 4th, 2012  Recent research carried out by McKinsey Quarterly with 2,135 executives showed that most companies’ strategies are flawed and not ‘future-proofed’ to make sure that they are adaptable to changing market conditions. With 2012 ahead of us (and no doubt some globally challenging times ahead), we have detailed the main checklist that you should review to see where gaps lie in your company’s strategy and develop a future process for improving your strategy over the next 12 months: 1. Commit to following your strategy (but with some flexibility!) As documented by Porter and his 5 forces, all companies operate in markets surrounded by customers, suppliers, competitors, substitutes, and potential entrants and all are seeking to advance their own positions. The problem is that most companies continue to do what they have always done and not think about diversifying to beat the market. Remember, if you always do what you have always done then you will always get what you have always got…if you are lucky! Make sure that you do something different in 2012 to create value and improve your strategy development process. For a full reading of the article by McKinsey please visit www.mckinseyquarterly.com ‘Have you tested your strategy lately?’ For further reading on strategy development and competitive intelligence click on the links below: B2B International White Paper – Competitor Intelligence The 5 Pillars Of Good StrategyFriday, December 16th, 2011  First, you must choose a distinctive value proposition. Which needs will you serve, which customers, at what relative price? Have you staked out a positioning that’s different from rivals? Second, and far less intuitive, you must choose to tailor your activities to that value proposition. Competitive advantage lies in the activities, in choosing to perform activities differently or to perform different activities than rivals. These ultimately are the choices that result in a company’s ability to charge premium prices or to operate at lower cost. (Remember, we’re talking about quantifiable performance.) The third test of strategy, making trade-offs, may well be the hardest. It means accepting limits — saying no to some customers, for example, so that you can better serve others. Porter explains why trade-offs are an important source of profitability differences among rivals, and why trade-offs make it difficult for rivals to copy what you do without compromising their own strategies. The essence of strategy, says Porter, is choosing what not to do. Fit is the fourth test. Great strategies are like complex systems in which all of the parts fit together seamlessly. Each thing you’ve chosen to do amplifies the value of the other things you do. That’s how fit improves the bottom line. It also enhances sustainability. Says Porter, “Fit locks out imitators by creating a chain that is as strong as its strongest link.” Continuity is strategy’s fifth test. While managers are often berated for changing too slowly and too little, it is also possible to change too much, and in the wrong ways. Faced with the latest New Thing, managers must choose whether to embrace it or not. Continuity of strategy helps companies to make good choices about whether and how to change in the face of turbulence. Good choices will strengthen tailoring, sharpen trade-offs, and enhance fit. Whether it is competitive advantage, the value chain, five forces, industry structure or differentiation, Michael Porter’s frameworks are the foundation. If you want to understand how companies achieve and sustain competitive success then buy this latest book from Harvard Business School called ‘Understanding Michael Porter: The Essential Guide to Competition and Strategy’ Click here to buy Understanding Michael Porter: The Essential Guide to Competition and Strategy « Previous Entries |
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