To you veterans of AAPN, there is no need to remind you that THIS article was forecast years ago by such members as Kurt Cavano, Rick Horwitch, Carlos Arias, Juan Zighelboim, Keith Crisco and Suzy Ganz among many others. They TOLD us this was coming.
It is so inspiring to travel to member companies where you see first hand that they took back something from one of our events and acted on it to make themselves more competitive. Yet it is broadcasts like this one, the daily input, that keeps us at the bleeding edge of change, where decisions now save jobs and make money. Read on...
The Next Era of Globalization Will Be Shaped by Customers, Technology, and Value Chains
HBR: James Manyika and Susan Lund, FEBRUARY 12, 2019
If you ask the average CEO what’s making them lose sleep these days, it’s a good bet that the answer will be tariffs and trade wars. One-third of respondents in a recent McKinsey survey of global executives said that uncertainty over trade policy is their greatest concern—and three-quarters of all companies say their global investment strategies are changing as a result.
But companies can’t afford to merely react to the news cycle. Every decision needs to be informed by the bigger picture—and when we step back, it’s clear that longer-term structural shifts are reshaping the very nature of globalization. Our new research looks in detail at 23 different industry value chains across 43 countries to get a better view of what companies are already doing on the ground and how they add up to fundamental changes that will shape the next era.
First, the geography of global demand has radically changed over the past decade. China, India, and other emerging economies originally plugged into global value chains by making labor-intensive manufactured goods and exporting them to advanced economies. But now their billion new consumers are a powerful force. It’s an outdated assumption to think of them as “low-cost factories to the world.” They are lucrative consumer markets in their own right, and their companies are a new source of competition. Read More