July 9, 2008

News & Opinion: GLOBALITY Blog #2: The New Competitors Come from Everywhere

By: 800-CEO-READ @ 1:30 PM – Filed under: Management & Workplace Culture

Welcome to day two of the GLOBALITY blog hosting. Yesterday Hal Sirkin introduced us to the who side of globality. And today, Arindam Bhattacharya, partner of The Boston Consulting Group's New Delhi office, joins us to discuss the where of globality. He'll be answering your questions throughout the day. Ask away!
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The New Competitors Come from Everywhere
In the era of globality, where will your competitors come from? Short answer: Everywhere.
At The Boston Consulting Group, we've done extensive research on a group of companies that we call the "global challengers." These are very successful companies that come from 14 rapidly developing economies: Argentina, Brazil, Chile, China, Egypt, Hungary, India, Indonesia, Malaysia, Mexico, Poland, Russia, Thailand, and Turkey.
They operate in virtually every industry: industrial goods, durable goods, resources, food and beverage, cosmetics, technology equipment, pharmaceuticals, mobile communication services, shipping, and infrastructure.
The big multinational companies, the "incumbents" as we call them, have been taken by surprise by these challengers, precisely because they seemed to pop up from unexpected places or enter industries where no challengers had been before.
Who guessed that the world's top maker of children's strollers, Goodbaby, would come from China? Or that the leading maker of regional jets of 120 seats or less, Embraer, would be Brazilian? Or that the leading supplier of natural gas, Gazprom, would be based in Russia?
And the speed! The challengers move faster than incumbents. They grow faster. Create more products faster. Complete acquisitions faster. And enter new markets faster.
They're everywhere!
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Tomorrow, join us for the final day of blog hosting by the GLOBALITY author Jim Hemerling.