The BIG Blog

The New ‘Type E’ Definition of Globalization

Globalization has traditionally been viewed as the west taking advantage of economically advantageous market resources in the East. This has forged collaboration in product design and manufacture, with ready access to low cost labor and proximity to huge new markets.

However, the balance of power of globalization is no longer tipped towards the West. Pockets of global advantage such as eastern markets China and India are embracing their resource advantages and making their presence felt in the ranks of global corporations.

This is forging a type E global market: competing with everyone, from everywhere for everything.
Rapidly developing economies with low wage rates were previously engaged in outsource models to manufacture goods and ship them back to the West; and receiving from the West luxury goods not available locally in their developing nations.

The new emerging global conglomerates are posing significant threats to mature multi-national companies, playing on the global stage and gaining global brand presence through mergers and acquisitions. Many existing companies are failing to recognize this new order and in doing so are not only taking steps to protect their turf, but are not open to recognising the new opportunities presented by this changing marketscape.

It comes back to our discussion is a recent previous post – if you are not scouting out over the horizon and monitoring spikes for change you are likely to be too late to intercept any forces impacting your performance.