Competing for New Global Growth Opportunities

Competing for New Global Growth Opportunities


…………

DR. JAGDISH N. SHETH

Charles H. Kellstadt Professor of MarketingEmory [email protected]

Opportunities Opportunities



DR. JAGDISH N. SHETH

Charles H. Kellstadt Professor of MarketingEmory [email protected]

Opportunities Opportunities

…………The Fundamental Shift in Global GrowthThe Fundamental Shift in Global Growth

BRANDED PRODUCTS& SERVICES

ADVANCED

©2009 Dr. Jagdish N. Sheth. All rights reserved.Turquality/ Competing for New Global Growth Opportunities 04-30-09

UNBRANDED PRODUCTS& SERVICES

ADVANCEDNATIONS

HistoricalReality

The Fundamental Shift in Global The Fundamental Shift in Global

BRANDED PRODUCTS& SERVICES

New Reality

2

EMERGINGNATIONS

UNBRANDED PRODUCTS& SERVICES

…………Forces Driving the Shift in Global GrowthForces Driving the Shift in Global Growth

AFFORDABLE INNOVATIONS


FORCES DRIVING THE SHIFT

GEOECONOMIC REALIGNMENT OF THE WORLD

Forces Driving the Shift in Global GrowthForces Driving the Shift in Global Growth

AGING OF AFFLUENT NATIONS

3

FORCES DRIVING THE SHIFT

RISE OF THE NEW BRAND CONSCIOUS

MIDDLE CLASS

………… New Measures of World EconomiesNew Measures of World EconomiesThe new measure is Purchasing Power Parity (PPP).

1. U.S. $ 14 trillion2. China $ 13 trillion3. India $ 5.2 trillion

2008


3. India $ 5.2 trillion4. Japan $ 4.5 trillion5. Germany $ 2.8 trillion6. U.K. $ 2.4 trillion7. France$ 2.1 trillion8. Russia $ 2.1 trillion9. Brazil $ 2.1 trillion10. Italy $ 1.9 trillion

New Measures of World New Measures of World

The new measure is Purchasing Power Parity (PPP).

$ 14 trillion$ 13 trillion$ 5.2 trillion

4

$ 5.2 trillion$ 4.5 trillion$ 2.8 trillion$ 2.4 trillion

$ 2.1 trillion$ 1.9 trillion

Source: International Monetary Fund (IMF)

…………New Measures of World Economies (cont.)New Measures of World Economies (cont.)

• China is the second largest economy based on PPP index and just surpassed Germany in GDP. It will be the largest single economy


will be the largest single economy by the year 2020.

• India is the third largest PPP economy, and it is likely to surpass Germany and Japan in GDP by 2020.

New Measures of World (cont.)

New Measures of World (cont.)

China is the second largest economy based on PPP index and just surpassed Germany in GDP. It will be the largest single economy

5

will be the largest single economy by the year 2020.

India is the third largest PPP economy, and it is likely to surpass Germany and Japan in GDP by

…………


6

………… Impact on MarketsImpact on Markets

Fusion of markets & cultures

R&D shifts to6


Rise of Chindia’sglobal enterprises(Mittal, LeNovo)

R&D shifts toChindia

4

5

6

Impact on MarketsImpact on Markets

Emergence of largest

consumption drivenmarkets

Affordability becomes1

7

Affordability becomesfocus of innovation

Rising tides liftall boats

2

3

…………

Impact on ResourcesImpact on Resources

Shortage driven breakthroughinnovations(Ethanol)

5


Global megamergers(oil, steel, copper, gas)

Rising upstreamprofits

4

5

Impact on ResourcesImpact on Resources

Emergence ofstrange bedfellows(China & Africa)

1

8

Resource drivenglobal expansion(IBM in India)

Global megamergers(oil, steel, copper, gas)

1

2

3

…………

Impact on GeopoliticsImpact on Geopolitics

EASTERNIZATIONOF THE WORLD

5


CURRENCY WARSMORE STRATEGIC THAN

TRADE WARS

RISE OFMULTILATERALPOLITICS

4

5

Impact on GeopoliticsImpact on Geopolitics

G-8 BECOMESG-20

EASTERNIZATION

1

9

CHINDIA IN WORLDBODIES

CURRENCY WARSMORE STRATEGIC THAN

TRADE WARS

1

2

3

…………

How to Succeed in the FutureHow to Succeed in the Future

Obtain low cost capital

Transform talent capital

8


Scale up through global acquisitions

capital

Enhance productivity through automation &

processes

56

7

8


Embrace global standards

Earn quality reputation1

10

reputation

Invest in design & research

through automation &

Create globally admired brands

1

2

34

…………

1. Embrace Global Standards– R&D – Operations– Human capital– Processes

2. Earn Quality Reputation



2. Earn Quality Reputation– Quality obsession– Compete for global awards– German engineering– Indian software

3. Invest in Design and Research– Design is key– IPR through research– Global centers of excellence– Licensing

Embrace Global Standards


11

Compete for global awards

Invest in Design and Research

Global centers of excellence

…………

4. Create Globally Admired Brands– Nano car– Samsung– LeNovo– Slumdog Millionaire



– Slumdog Millionaire5. Enhance Productivity Through Automation & Processes– ERP, SCM, CRM and e– Process focus– Lean operations

Create Globally Admired Brands


12

Enhance Productivity Through Automation

ERP, SCM, CRM and e-Business

…………

6. Scale Up Through Acquisitions– Haier– LeNovo– Mittal Steel– InBev

7. Obtain Low Cost Capital



7. Obtain Low Cost Capital– Foreign stock exchange– Private equity– Debt capital– Sovereign funds

8. Transform Talent Capital– Invest in employee education– Move up the knowledge ladder– Transnational leadership

Scale Up Through Acquisitions

Obtain Low Cost Capital


13

Obtain Low Cost Capital

Transform Talent CapitalInvest in employee educationMove up the knowledge ladderTransnational leadership

…………

ConclusionConclusion

• There are enormous new global growth opportunities.

• Global growth opportunities are driven by the rise of the new brand conscious middle class of


rise of the new brand conscious middle class of emerging economies and by aging of affluent nations.

• They are also driven by affordable innovations and new geoeconomic realignment of the world.

There are enormous new global growth

Global growth opportunities are driven by the rise of the new brand conscious middle class of

14

rise of the new brand conscious middle class of emerging economies and by aging of affluent

They are also driven by affordable innovations and new geoeconomic realignment of the

…………

ConclusionConclusion

• To successfully compete in these global growth opportunities will require a new mindset.

• It will require embracing global standards;


• It will require embracing global standards; earn quality reputation; invest in design & research; create globally admired brands; enhance productivity through processes; obtain low cost capital; and transform human capital.

To successfully compete in these global growth opportunities will require a new

It will require embracing global standards;

15

It will require embracing global standards; earn quality reputation; invest in design & research; create globally admired brands; enhance productivity through processes; obtain low cost capital; and transform human

Date post:	28-Dec-2021
Category:	Documents
Upload:	others
View:	2 times
Download:	0 times

Competing for New Global Growth Opportunities

Documents